Dropship Products

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By goldmind


2,009 CARDS, MAHJONGG & SOLITAIRE GAMES
2,009 CARDS, MAHJONGG & SOLITAIRE GAMES

Start Your Small Business

With the internet allowing small business people to inexpensively advertise to hundreds of thousands of people, more people every day are deciding to give starting a business a go. The first thing a business needs is a product, and savvy business people are choosing overwhelmingly to offer dropship products to their customers.

For anyone who doesn't know, dropshipping is simply taking orders yourself then having the manufacturer ship the product directly to your customer. Dropship products allow even a one-person operation to carry a good selection and do a large volume of business because the dropshipping eliminates the need to stock, store, ship, and provide quality control for the products. Let's take each of these factor individually to get a better look at the advantages:

1. No need to stock products

This is a major concern because in a traditional brick-and-mortar retail store, the stock is the biggest initial investment. After all, your corner hardware store can't sell a stove unless they have a stove to sell. Not needing to stock inventory eliminates that huge upfront investment required to start a traditional store, opening the door for the average Joe to get into a business of his own.

2. No need to store inventory

While this is related to stocking, we're looking at a different set of concerns. With inventory storage, we encounter the other big expense of a brick-and-mortar store. To store your inventory requires a facility that provides both space and security since you need the room to store things and the security to keep thieves or vandals from destroying that inventory. In addition to the physical needs, storing an inventory brings additional costs like theft insurance or additional fire and water insurance. With dropship products, these concerns (and the costs that go with them) belong to someone else.

3. No need to ship products.

Shipping is often an overlooked cost for those starting a mail-order business. In addition to the raw cost of postage, man-hours need to be spent to provide the actual handling of the inventory. These expenses are actually doubled in a traditional mail-order facility because you pay the costs of shipping and receiving the products from the manufacturer, then turn around and pay these costs all over to get that product to your customer. Dropship products eliminate this cost. In addition to reducing headaches from the process, a business that dropships has a competitive advantage over other companies because this eliminated cost results in a saving that can be passed on to the customer.


4. The ability to stock a variety of products

This is possibly the biggest advantage of using dropship products. Since the manufacturer ships products directly to your customers while you take the orders, a business can become partners with a vast array of manufacturers. This versatility allows someone who sells home furnishings to expand into auto parts without allocating additional space and money to do so. Think about that corner hardware store - what if tomorrow they could add a full line of designer suits to their inventory? Let's throw in the latest computer equipment and home exercise machines. Do you think they would make more money? Logically, the more products they carry the more potential customers they have. Now imagine how thrilled they would be if they could make all these incredibly diverse products available to their customers without spending an additional penny do to so... and to be able offer all these products at great price. A regular store can't do any of this, but someone running a business that uses dropship products can.

5. No need for quality control.

Quality control is one of the most difficult costs to predict. If a certain brand of TV manufacturer releases a model that randomly bursts into flames, this creates a service nightmare for brick-and-mortar stores that have sold that particular model. Someone using dropship products, on the other hand, simply gives customers the number of the manufacturer and all the return and replacement details are taken care of. Because of this huge advantage, a small business owner who dropships can sleep at night knowing the extra staff to maintain quality control is not his or her problem. Once again, using dropship products saves time, money, and hassles.

Low overhead expenses

The internet allows an average, everyday person to start a business and compete head-to-head with the giants of the retail world. Dropship products eliminate costs and increase options to allow that same average, everyday person to beat those retail giants.

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Tom Cornett profile image

Tom Cornett  says:
8 months ago

Good hub and information...we sell on eBay but havn't tried drop shipping yet. Thanks!

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