Dropshipping:
Dropshipping is a way
of selling goods whereby the product is shipped to the customer
directly by the wholesale
company, not the retailer.
For a marketer this
is especially handy when he sells via the internet. He can
build a relation to a good wholesale Dropshipping company and
sell their physical product
s on
his website
. When a sale is done he notifies the wholesaler of
it and relays the shipping address of the customer. The
wholesaler then ships the purchased product. The profit
of the Internet marketer is the difference between the
wholesale price which he has to pay to the wholesaler and
the retail price the customer has to pay to
him.
The big advantage is
that he doesn’t have to keep a big inventory with – depending
on the bulkiness of the products – probably considerable
storage costs and he doesn’t have to deal with the time
consuming shipping procedure. He only has to take care of the
sales process, whether he sells his products on
eBay
or directly on his own website.
Key to a successful
business is to pick a good and reliable Dropship wholesaler. Be
careful when searching for a Dropshipper as you might run into
someone called a “Middleman”. This is a person or company which
pretends to be the actual wholesale Dropshipper, in reality,
however, is only a relay point; i.e. he is only some kind of a
broker with direct contact to a Dropshipper. He would only
refer your sales notifications there for a commission and this
, of course, would cut your profit without any advantage on
your part. You could as well contact the actual Dropshipper
yourself and keep the whole profit.
[Drop goes back to Old English
dropa = to fall in drops,also used in the sense of
“allow to fall”;
Shipping comes from Old English scip =
ship, boat and as a verb meaning to transport by ship; since
the 17th century this definition transferred also to
other means of transportation such as railroads
etc.]
|