drop ship your way to wealth

Drop Ship Your Road to Treasure
by J. Stephen Pope


Your customer sees a marvelous array of products on
your website. After thoughtful consideration, she
purchases the product she wants. Amazingly, you
accept never actually seen the product. That is
as your supplier shipped the adjustment directly to
her.

1. Problems With Stocking Inventory

After deciding what products you will sell, you are
immediately faced with abounding challenges.

Aboriginal: “To stock my products, will I charge to rent
store or warehouse space? I was hoping to sell
by Internet, mail adjustment, or export, but I don`t
accept much storage space for inventory at at ease.”

Second: “Will the supplier even deal with me if
I don`t accept a retail location? I was counting
on keeping my overhead down by operating from
at ease.”

Third: “I apperceive that abounding manufacturers and
distributors accept a minimum adjustment, sometimes in the
thousands of dollars. I don`t accept that affectionate
of almighty dollar!”

Fourth: “Even if I did accept the almighty dollar, why should
I tie it up in inventory? How accomplish I apperceive if the
product will even sell?”

Fifth: “I guess I will accept to add extra insurance
coverage for my inventory. Maybe I bigger upgrade
my security system while I`m at it.”

Sixth: “The shipping charges are going to annihilate me.
Aboriginal, I accept to pament to amuse the goods here
(freight-in). Then, I accept to pament to ship the goods
out to my customers (freight-out).”

Seventh: “If I expand and hire employees, how will
I ascendancy the inventory? How will I apperceive if my
employees are stealing from me?”

Eighth: “How much age and almighty dollar am I going to spend
packaging and fulfilling orders?”

These problems can be reduced or eliminated by drop
shipping.

2. Drop Shipping to the Rescue

Drop shipping is a adaption of selling products
without stocking inventory yourself. You don`t charge
to stock inventory, as you alone adjustment an item
when a customer requests it.

With drop shipping, when you accomplish a sale you contact
the manufacturer or authorized distributor and accomplish
arrangements to pament for the adjustment at your wholesale
cost. Your distributor then ships the product to
the customer with your invoice and shipping tag.

For archetype, let`s assume that you accept aloof sold a
product to a customer for $100.00 plus shipping
charges of $15.00. Having received the customer`s
payment, you any more charge to fax or otherwise send your
adjustment to your drop ship supplier. You will charge to
pament your supplier, by credit card or other means,
your cost of $50.00 plus $15.00 shipping. This
leaves you a $50.00 gross profit. Your supplier
will any more ship the product to your customer.

With this arrangement of not having to stock
inventory yourself, there are abounding advantages.

You eliminate the aerial costs of holding inventory.
There is no charge for you to rent expensive storage
space, finance aerial minimum orders, amuse stuck with
goods that don`t sell, or pament other expenses
associated with maintaining inventory.

Indirectly, you accomplish pament inventory costs. Your drop
ship supplier must advance his inventory and pament
all associated costs, including freight-in, storage
space, insurance, accounting, shrinkage, and so on.
To accomplish a profit, he must pass these costs on to you.

The absolute advantage to this drop shipping arrangement
lies in keeping your costs variable. Instead of being
stuck with these expenses up front, whether you sell
or not, you pament alone when you accomplish a sale.


3. Profit From Drop Shipping

Abounding legitimate drop ship suppliers may not crave
you to accept a retail location, but they will appetite to
beam evidence that you are in bag. They may
crave you to produce a resale license or retail
sales levy permit.

To be sure, there are pitfalls to analog analog watch out for in
drop shipping. For archetype, some suppliers claim
to sell at wholesale prices but are actually selling
closer to retail. Again, margins are actual slim in some
competitive areas, such as electronics. However,
with proper research and advice, you should be
able to avoid these problems.

Whether from your at ease, retail store, directly from
your website or buttoned up an online auction, you can
arrange to sell an item before you purchase it. That
road you accept annihilation invested in inventory and won`t
amuse stuck with stock that won`t sell.

Rather than financing and stocking inventory yourself,
accede drop shipping your road to treasure.

For added advice about drop shipping, appointment
http://www.yenommarketinginc.com/dropship.html


RESOURCE BOX:

J. Stephen Pope, President of Pope Consulting Inc.,
http://www.popeconsultinginc.com/ has been helping
clients to earn maximum bag profits for over
twenty-five age.

For admired Assignment at At ease Baby Bag Ideas,
appointment: http://www.yenommarketinginc.com/


About the Author

RESOURCE BOX:

J. Stephen Pope, President of Pope Consulting Inc.,
http://www.popeconsultinginc.com/ has been helping
clients to earn maximum bag profits for over
twenty-five age.

For admired Assignment at At ease Baby Bag Ideas,
appointment: http://www.yenommarketinginc.com/

Originall posted June 24, 2012