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What is DROPSHIPPING? Pros & Cons Seminar Junkies Anonymous

4 May


Drop shipping has become a popular business model thanks to the proliferation of the internet and the growing ease and accessibility of online transactions.
An online Seller/Store owner and product manufacturer or wholesale supplier will have an agreement.
So the store owner simply advertises the products on his or her website and when a customer places an order, the store owner forwards the order info on to the dropshipper (supplier) who actually fulfills the order. This means that they will ship products directly to the end customer and bills the seller.
The seller collects revenue for the sale from the customer, and then pays the dropshipper for the product at wholesale pricing.
The difference between the drop ship supplier’s price + shipping and your sale price is where you make your profits.

More and more sellers prefer this arrangement over the traditional ways of buying and selling wholesale products because of the many advantages:
This reduces risks:
Unavailability of product due to under-stocking,
Losses from unsold stocks,
Damage to stored items,
You do not need to waste money on hiring warehouses to stock items, and
You do not have to handle shipping or packaging.
YOU CAN WORK FROM ANYWHERE IN THE WORLD. Work from home, spend more time with the kids. Work from a hammock on the beach. As long as you have power, a laptop and the internet to receive and process orders – you can drop ship.
START-UP COSTS ARE LOW because as a seller you don’t need to purchase yet-to-be ordered stock or store inventory.
YOU DON’T HAVE TO TRACK SHIPMENTS. It is the responsibility of the supplier to take the trouble of packaging products, shipping them to customers and to track shipments.
DIVERSITY. You can sell as many types of products as you like, because you are not bound by inventory.
ECO-FRIENDLY. By effectively cutting you out as the shipping middleman you are reducing the carbon footprint of the product. The amount of energy saved greatly helps the environment.
Drop shipping Pros & Cons Seminar Junkies Anonymous
For all of its advantages, drop shipping can turn into a bad experience if you do not address certain issues before starting your business.
Finding dropship wholesalers is key to a successful dropshipping business.
FRAUD. Dropshipping fraud is common. Online drop shippers should be investigated before using them.
Watch out for these signs of drop shipping fraud:
• Fees To Supply Your Customers With Product: Genuine drop shippers do not ask for any fees. The only payments you make are the product and shipping costs.
• Little-Known Shipping Companies: You need reputable couriers who will handle the consignment in a professional manner and assure timely delivery. Sellers may lose their reputation if the products arrive at the customer’s doorstep in a poor state. Therefore make sure your drop shipper uses well-known delivery companies, and resist the temptation to go with drop shippers who use unknown, inexpensive shipping companies.
No Return Or Exchange Policy: This can leave you as the seller in the lurch, particularly if there are multiple instances of substandard product. Ask about their return policy, Before signing up with a manufacturer or wholesale supplier.
drop shipping
Poor Reviews: A simple online search will help you uncover drop shipping fraud. There are websites dedicated to reviewing drop ship manufacturers and suppliers who sell products at wholesale prices. If these suppliers have been given poor ratings, avoid doing business with them.
It is important to enagage with your supplier, not only to minimize the chance of fraud but also to establish a relationship with a desired wholesaler and keeping them interested in doing business with you.
Experience: Many manufacturers are not interested in drop shipping. They prefer to do their own marketing and sales, and to sell in bulk. You should look for large manufacturers who would rather focus on manufacturing than on sales and promotion.
Demonstrate the WIN-WIN: You need to provide them with value by bringing them qualified customers and, in return, you get to make a profit on the products sold through the manufacturers on a drop shipping basis.
Guilty by association many manufacturers or wholesalers may have grievances against sellers wanting to do business on a drop shipping basis. They may feel they are asked to take unfair risks by drop shipping products at reduced prices to a customer base that is already accessible to them, and can therefore consider your services as a referrer superfluous or potentially harmful to their brand if your brand lacks credibility.
Dispel their fears. Manufacturers may claim that drop ship resellers are not serious about their business, because they are unwilling to invest in stock holding and thus bear little risk. Due to this lack of risk taking, many manufacturers receiving requests to drop ship their products will consider your requests not worth their time investment in setting you for such an arrangement. You need to build a workable relationship with the manufacturers and convince them why partnering with you on a drop shipping basis is beneficial to them, yourself and the consumer.
The only way to expand an ecommerce business is to create an online presence that will get your business noticed.
The Internet is an inexpensive tool to promote business, if you choose the right channels. A lot of sellers start out by selling via eBay or Amazon.com. These sites provide access to millions of buyers, and also feature profiles of online drop shippers you can get supplies from.
Drop ship directories are also useful; they list drop shippers for every kind of product, whether it is cosmetics or baby products or electronic goods. They have forums where new drop ship agents can find advice and business leads.
If your eBay business takes off, the next step is to create an ecommerce website. Website hosting is cheap, click here for SJA’s recommendation, we use it and we love it.
Some people spend anything from $3000 to $10,000 on professional site design and development. Click here for SJA’s recommendation that wont cost you an arm and a leg!
A credible, professional-looking website that people can trust and feel comfortable buying through will draw more customers and conversions. It is also easier to convert leads if your site or landing page is well structured and offers relevant information.
By choosing the right suppliers, avoiding drop shipping fraud, and using online tools to advertise and carry on business, drop shipping can be a very lucrative work-from-home business experience.
Finding a reliable supplier willing to drop ship products at wholesale prices is one of the biggest hurdles to building and operating a successful online store. Many store owners (and would-be store owners) spend countless frustrating hours searching aimlessly for such a supplier.
If you’ve read this, you’ve probably thought seriously about starting your own e-commerce store but haven’t been able to find a supplier for the product line you want to sell.
We’ve been recommended:
IT is a directory containing thousands of true dropshippers and wholesalers. It contains suppliers for virtually every product under the sun, selling over 15,000 brand names in over 30,000 product lines.
Click here to find out more about Dropship Blueprint.
We’d love to hear about your experiences – leave a comment below or email us at: seminarjunkiesanon@gmail.com
Drop shipping Pros & Cons Seminar Junkies Anonymous

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