What Exactly Is Drop Shipping?
Retailers can have their wholesale partners dropship products to customers around the world, i.e., the retailer receives the order, passes the information on to the wholesaler, who then delivers the products directly to the customer. These retailers don’t need to hold an inventory of products and so are insulated from the associated costs and the risk of price fluctuations.What Are the 3-M Common Mistakes Made by People New
to Drop Shipping?
There are three common mistakes people who want to dropship often make – these are known as the three M’s of dropshipping. They are minimum orders, middlemen and membership fees. Authentic dropshippers would not require you to buy minimum amounts of a product to do business with them, nor will they require you to pay membership fees. You can avoid middlemen by using a drop ship directory to find companies to do business with.How Can I Become a Drop Shipping Retailer?
To become a dropshipping retailer you’ll need to find a niche in the market, and explore your competition. You will also need a website or blog to advertise your products. With less than US$100 investment per year your website could be up and running within a matter of days. It normally takes some time before the search engines find your website and before your advertisements start to pay off, so you will also need some patience and determination.Your website will be an Internet store, with a shopping cart and the ability to accept credit cards. You’ll need to find a distributor willing to drop ship products you want to sell. You will receive images and descriptions of the products you want to sell from the dropshipper and you can post them on your Internet store. When customers surf into your store and make purchases, the distributor will send the products directly to them.
What Are the Advantages of Drop Shipping?
Some of the advantages of dropshipping include: you don’t have to take any major risk since you can establish your online business immediately without worrying about any investment in stock, you don’t need a physical space to store your stock, and you can focus on advertising without worrying about packaging, thus saving yourself precious time and effort.Dropshipping is a wonderful way to make big money fast, but it can also be a good way to lose money too. Many business owners, including dropshipping companies, care more about money than the end customer, and this can reflect badly on your business, especially when you have to keep back ordering goods you thought your suppliers had in stock.
Part 4: What's 3-M Drop Ship Mistake?