Online retailers know that one of the main aspect of their business is their inventory. Specifically, having the right amount of inventory when it’s needed. In an effort to keep customers happy, while also not paying exorbitant amounts of money to manufacturers, many ecommerce retailers are now turning to drop shipping!
WHAT IS DROP SHIPPPING?
It’s simple, really. With drop shipping, an online retailer can easily sell products and fulfill shipments to their clients without ever handling the product. Using a third part manufacturing company, such as Amazon, the online retailer can sell items they don’t have in their stock. Using this method also allows the online retailer to ensure that their products will reach their customers!
HOW DO YOU USE IT?
Become a Business: Most manufacturers want to work with a company. If you can set yourself up as an LLC or an S-Corp, you run a better chance of being able to work with a manufacturer who offers drop shipping!
Find your niche: Have you already decided what you are selling and to whom? Are you in a market where you can be a leader and beat outside competition? If so, you’re on the right path!
Get a website on Shopify: Shopify offers an online store where you can make your products easily available to buyers! Be sure you are working with your manufacturers/vendors to set up your shop properly for drop shipping purposes.
WHAT ARE THE PROS & CONS?
Pros: As discussed earlier, drop shipping allows you, as the online retailer, to not only offer a wide variety of products, but ensure that buyers can get them in a timely manner. Additionally, drop shipping allows you the capability to sell items that are not actually in your inventory! Although these are great reasons to have drop shipping at your strategy, there are a few drawbacks to this method.
Cons: As an online retailer, one major thing to remember if you take on drop shipping is that you are not in total control. Although there is ease in letting a third party handle shipping, if the manufacturer is out of the goods the client has purchased, it could reflect badly on you. Clients only know that they are expecting your product and if it hasn’t arrived, they could blame you as the retailer.
WHO CAN YOU USE AS YOUR DROP SHIPPER?
Finding the right manufacturer to work with might be difficult, so we have a few suggestions for you!
Drop Ship Direct: This company works with over 50,000 retailers, so you’re bound to be in good company! Find their website HERE.
World Wide Brands: If you’re looking for a company that has a good connection with eBay, check out WWB.
Amazon Seller Central: In order to have Amazon as your drop shipper, or your fulfillment center, be sure to check out their Seller Center. It’ll help you get started & ensure you’re reaching your target customers.
Now that you’re armed with the basics of drop shipping, it’s time to get started!