Saturday, April 11, 2009

All About Dropshipping

Drop shipping has been very popular for years among Internet Marketers as well as people who are just started to do Internet Business. We know that you will have questions in your mind right now on drop shipping. In this article, we will like to share with you the pro and the cons of drop shipping. 

While you are in the process of searching for company who provide dropshipping service, please note that some dropshipping company will ask for your company license and detail of your company and business nature. Some dropshipper do not charge you any join fees and they will be thankful for all your marketing effort. The dropshipper will normally have it own web site with all the products listed in retail or wholesale prices. Some dropshipper will provide you with login name and password after they had verified your company information. When you login with the login name and password given, you will be redirect to a site where all of their products are listed with ‘Discounted Prices’ which means normal visitors do not have any ways to access the discounted pricelist section because this section is mainly for people or internet marketers who want to do business. Some dropshipper will give you 30%-60% depends on how many sales you bring in for them.

 

Pros

Do not need to stock up inventory

Dropshipper will handle the shipping and handling if you manage to make any sales. Besides, you do not need to face the manufacturer at all. No headache!


You job is just Internet Marketing

After you have setup your online store with all the products uploaded, you need to find sales. Right? All of your work is just e-marketing, finding keywords for your products and seo. You will have more focus on marketing area.


Low cost Start Up

Starting up a online store will cost you around USD500 – USD2000. This range is really low compare to normal conventional businesses. If you are a web developer, your cost might be lower than that.


You can work at anywhere

When you manage to find sales, you just have to forward or redirect your customer’s info to your dropshipper and that’s it. They will do the rest. E-mail is just your tool and your can do it Hawaiithis week and Japan next weekend.


No Need Photography Skill

The dropshipper will provide you with the entire products photo. Thumbs Up!


Cons

Product Price Fluctuation

You have to keep up to date with the prices of your products. Sometimes, price can be different next week and change again next month. For example, if you sell gold and platinum jewelry, price quoted on the jewelry item are based on the current Gold & Platinum Market Price. If you sell Sterling Silver Jewelry, prices can still be alter but little and very rarely.


You are not able to see and touch the real products.

You can only see the photo of the products that the dropshipper gave you.


A lot of data entry work.

If your dropshipper have 4000 products in their collections, you need to enter bit by bit to your online store.


Marketing cost.

Marketing can be very expensive if you sell a hot demand and very highly competitive products.

 

Yes. Profit can be made if you manage to get a good dropshipper who can give you the best discount.

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