The Pros and Cons of Drop Shipping
Among the types of sourcing products, wholesale drop shipping is a commonly used form because you’ll only be paying for the goods you’ll be selling.
Wholesale drop shipping works in the following manner:
- Find a supplier which provides drop shipping services.
- Send an email for your inquiries.
- Drop shippers differ in their systems and procedures. But generally, you can select to create an account or just pay for every item as you go on selling them.
- When you already have an account, you can just grab the drop shipper’s posted photos and product descriptions of the items you desire of selling.
- List the items on eBay or your website.
- Once you’ve made a sale and have received the payment, access your supplier’s site.
- Click on the products that you have already sold and take it through the checkout.
- Have the products paid up.
- Provide the buyer’s details.
- Finally, the supplier packs the products and ships it!
Now, that you’ve learned of how drop shipping works, here are the pros and cons.
- Since the drop ship suppliers handle and manages the stocks, you’ll really save a lot of time.
- Storing stocks on site is no longer necessary.
- The suppliers handle the packaging and postage of the stocks.
- The risk of keeping stocks for a longer period of time is actually erased as you are only paying for the stocks you get to sell.
- No minimum orders are require. So, you’ll have a lot of money while you’re still starting up.
- New or first time sellers think drop shipping has minimal risks. On the other hand, well-experienced sellers love drop shipping because it offers greater number of choices.
Recently, the phrase “long-tail” has been a marketing word of mouth. “Long-tail further means aiming for the outlying corners of niche markets that are usually unused. To do this, you sell plenty of low-demand products. According to experts, adding up these things together can make low-demand product sales rise above those single products
You may have heard the phrase ‘long-tail’, a bit of a marketing buzz-word in recent months. In a nutshell, the ‘long-tail’ means targeting the far corners of niche markets that are normally untapped by selling a lot of low-demand products. Experts have worked out that when added together, sales of low-demand products actually exceed those of high-demand single products!
With drop shipping, you can take on this great strategy. Here’s an example. As a DVD seller, you could use a drop shipping supplier and advertise 400,000 different DVDs. You can already gain profits through the selling of low-demand products without having to worry about risks and storage. This is a great advantage for DVD sellers compared to typical DVD stores.
- One disadvantage is the possibility of an unexpected scarcity of stocks. As a result, you may be left out facing your customers on your own.
- Since you don’t really have any control over the inventory, you might not be able to grant your client’s requests anytime you want.
- If you’re looking for perfection, then please be aware that drop shippers are not at all perfect. When anything goes wrong even though you don’t have control these things, you are still responsible no matter what happens.