During the past years, Drop-shipping has emerged as one of the most profitable businesses. It is defined as a technique in supply chain management in which the retailer or any other person, does not keep products and goods in his shop as the stock. Instead, the drop-shipper keeps sample products or list of catalogues of products in which he is dealing in.
When customer orders product from a drop-shipper, he transfers customer's order to wholesaler, distributor or manufacturer, who delivers the product to customer direct from their inventory. Some time earlier, Drop-shippers were mainly retailers but now-a-days many other people have also started Drop-shipping business.
It is very easy business as anyone can do it as long as he has good understanding of supply chain management and general know-how of market trends. Drop-shipping is a home based business and can be operated from any part of the world; the drop-shipper only needs a computer, internet and an operating website either personal or an eCommerce site to showcase his products. Drop-shipping is now considered one of the most profit generating home based businesses which can reap high profits easily without any investment.
Three kinds of Drop-shipping are widely known. Blind Shipping”, in which no return mailing address is sent to customer, so that customer cannot contact wholesaler. The second type is Private Label Shipping”, in which product is delivered through wholesaler but return address of drop-shipper is also sent. The last type is Customized Packing Slip” in which drop-shipper s name, company logo and contact information is sent as a return address.
This business has no start-up costs; means that the dropshipper has to pay nothing from his pocket. Loss prevention is another big benefit of this business as the risk of loss is negligible and there is no need to spend costs on preventing it. Chances of broken, damaged or loss inventory are totally zero because dropshipper has no inventory in hand.
There are also no chances of frauds or delayed payments as whenever the customer orders the product, first the money is transferred in to drop shipper s account then he forwards the order and money to his wholesale suppliers.
i have seen instances where drop-shippers makes not less than $80 for every transaction. i will give you a typical examples. the first time i came across a product called "stop snoring" is from a drop-shipper. the product is aimed at stopping people from snoring when they are asleep. the drop-shipper created a personal site, added some scientific illustrations of how the product functions and how the product can stop you from snoring, how your loved ones can be more pleased with you when both of you are asleep since you no longer disturb them with your frog-like snoring etc. he was selling the product for 99usd. after making a little research about how people in my area in abuja will love the product, the demand was much and i later found out that the cost of buying the product from manufacturers was only $0.50-$3. lol, you see with little packaging and advert the above example shows you how a drop-shipper was making not less than 80usd/transaction. their are hundreds of such related products that can make mega bucks.
The only thing to consider while doing Dropshipping business is to remain up to date with your wholesale supplier and his inventory.
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