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Drop Shipping Advantages and Disadvantages

Drop Shipping Advantages and DisadvantagesWhen sourcing products, using a wholesale drop shipper is a commonly-used form. You don’t have storage fees, and you pay for only the goods you sell. “Long-tail” is a new marketing buzz word. It means the “long-tail” targeting the far corners of niche markets. Go after areas that are normally untapped. Then, sell a lot of low-demand products. Research has shown that when combined, sales of low-demand products actually exceed those of high-demand single products. Drop shipping allows you to use this strategy. To effectively select a drop shipper, however, you must be aware of how the process works.

DROP SHIPPING—HOW IT WORKS Drop shipping can be profitable for the new import/export dealer if you understand the ropes. Here are the steps to take to insure using a drop shipper is a success.

  • Research and find a supplier which provides drop shipping services and adequately meets your needs. Make a short list, then thoroughly examine each supplier on your short list to make sure they are a legal business.
  • Contact the supplier by email regarding what you want to sell.
  • Create an account or pay for each item as you sell them, whichever the drop shippers you select requires.
  • After set up, you just grab the drop shipper’s posted photos and product descriptions of the items you plan to sell.
  • List the items on eBay or your own business website.
  • Access your supplier’s site when you make a sale and receive payment.
  • Click on the products and proceed to the checkout process.
  • Input buyer’s details.
  • The supplier will pack and ship the products for you.

Drop shipping can help small businesses to be successful. It has both advantages and disadvantages: ADVANTAGES

  • SAVE TIME—The drop shippers handle and manage the stocks for you. This leaves you time to work on other aspects of your business.
  • NO STORAGE FEES—With drop shipping, you don’t have to store stocks on site, so there are no storage fees.
  • PAY FOR WHAT YOU SELL—You only have to pay for the stock you sell, and aren’t stuck with products that don’t.
  • NO MINIMUM ORDER REQUIREMENT—No minimum order requirement means start-up costs will be low.
  • CHOICES—First-time and experienced sellers both think drop shipping is excellent because it allows you to offer a greater number of choices.

DISADVANTAGES

  • STOCK SHORTAGES—You may experience an unexpected shortage of stocks. This will leave you to face unsatisfied customers on your own.
  • NO INVENTORY CONTROL—You don’t have any control over the inventory, therefore, you might not be able to meet your customer needs the way you want to.
  • YOU ARE RESPONSIBLE—If things go wrong, you alone hold the responsibility.

You must realize that drop shippers are not perfect. Things may happen that you have no control over. Still, all-in-all, drop shipping is a good way for new sellers to get their start.

 

 
 
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