Drop Shipping Business

Sign this. The products you sell do not need to be stored. You set the retail price and every time you sell, your wholesaler ships the product in your name to your customer’s doorstep and you keep the profit. How is this possible?

This is called drop shipping. Basically, an affiliate is a type of distributor that ships products directly to your customers on your behalf in a single unit. The purpose of this article is not to convince you to start a dropshipping business, but to give you advice on how to get off to a good start and avoid common pitfalls.

The beauty of shipping

For those interested in starting a home business, one of the biggest challenges is where to find the products to sell. If you don’t have thousands of dollars to invest in products and storage, and want to avoid the extremely competitive information products business or the horrendous multi-level business, direct shipping may be your answer.

The most obvious advantages of dropshipping are: you will never have to deal with the headaches of storage, packaging and transportation, and you will not have limited financial resources associated with inventory.

Other advantages are: there are no leftovers, you can easily and directly change or add products and there are no restrictions on the products you can sell. Plus, you can use your customers’ money to run your business and “wear” branded products and look great. Is this cool or something?

The dark side of direct selling

protect against. While dropshipping may be easy, finding a truly reliable distributor is not. Scam companies lurk, ready to cut your hard-earned money or take advantage of your hard work.

First of all, some “agents” are just middlemen who contact the real agents when you place an order. They use you as their salesperson, so you use your money and time to find customers and lower your profits.

Others are night flights. They take your money and disappear. In short, a scam.

I once responded to an impressive full-page ad in a business magazine. Advertisers claim to be affiliates and even promise to help through support and commercial advice. Long story short, “Affiliates” rarely deliver my orders as promised. In many cases, I have to re-order elsewhere and bear the loss to avoid disappointing my customers.

Later, when I discovered their source, I discovered that the company was not the real shipper.

A few years ago, eBay(TM) Powerseller (people who sell a lot on eBay(TM)) was in the news. After selling a large number of expensive goods at online auctions, he paid for an agency to deliver them. Imagine his pain when the company was suddenly closed without delivering his orders or refunding his money!

I once paid a $100 “distributor fee” to another “agent”. I received a nice catalog, but batch printing can cost a few cents. When I went to order again, the website had disappeared without a trace. The only thing I lost was the dealer fees. Others may not be so “lucky”.

Delayed delivery is another big problem for this type of business, especially for popular items. If you sell products quickly and easily, other people are also possible. Because it is a popular item, you and others have ordered several at once. Soon the product will be sold out and you will have to wait for the next shipment. At the same time, your customers are screaming for their orders.

Okay, but can you make money with instant shipping?

Can you make money by sending on your behalf? Yes and no. What do I mean? Well, like any business, dropshipping can only work if you work and apply old service principles, common sense, knowledge and wisdom. This is not a panacea for your money problems. Sorry if I just broke your bubble.

Some eBay(TM) supersellers, Internet marketers and leading mail order companies operate as consignment sales, with insane sales and revenues of up to six figures, even millions of dollars. Shipping on behalf is very effective.

It’s very simple (I don’t mean simple). Find the right sender. Decide what product you want to sell, find a way to let people know what you have to offer (e.g. eBay(TM), advertising, building a website, etc.), and then you can lead an enviable lifestyle.

This does require some homework, and this word scares most people: testing. But you must have a suitable product supplier to get started.

Looking for a good sender

The second option is also the favorite one, you only need to pay a small fee to find the completed research and ready to use it. Where can I find this?

The answer is a directory of reputable shippers. Why?

Because of a reputable affiliate catalog, you can get a large database of verified, updated, and tested affiliates, and everything is ready. You can also choose a variety of products, so you can choose a product line that you can specialize in and avoid over-competitive products.

What to look for in a shipper?

When looking for an affiliate, look for someone who delivers small orders, especially when you are just starting out, because you may not receive many orders.

Equally important is the experience of the direct selling company. Another reason to choose a reputable direct sales catalog is that they may have some history and user feedback about their offers.

Of course, you don’t want your customers to know that you use dropshippers, or find out where you came from. Therefore, the shipper must use your name and address on the package label and invoice.

Instant inventory updates will be an added benefit, as it helps prevent or reduce out-of-stock issues. The most acclaimed shipper will almost certainly have this advantage.

What to avoid?

Avoid affiliates who ask you to pay monthly fees unless they are well-known franchisees. Why pay a monthly fee to help sell their products unless they know that you are unlikely to sell anything?

In addition, do not accept offers from free websites or “turnkey business”. There are exceptions, but most free websites are nothing more than electronic catalogs. Your website looks exactly like hundreds of other websites, and you can only sell products from that company.

Oh, and stay away from the cheap shipping guides found on the Internet, business opportunity magazines, and online auctions. You will only get a bunch of unusable phone numbers, disconnected or dead Internet links, and fraudulent companies.

The company’s physical address must be clearly displayed on its website (see “Contact Information” or similar pages). If it is a post office box, please be careful. Run without an address!

Look for a valid phone number. If they are as big as they claim, they should be able to afford business calls and answer calls. Call and insist on talking with real people. Asking questions: They should be willing to answer questions from potential customers, otherwise, they should be very skeptical.

Avoid companies that include exclusive clauses in the terms and conditions, because you can only sell the company’s products, unless of course the company is a well-known franchisee.

All expenses must be disclosed before committing. Beware of companies that seem to have very low prices, but incur high shipping and handling costs or “reduced shipping costs.”

Set up direct account

Some distributors require you to have a VAT number to create an account. Others (not all) may require you to pay dealer fees or deposit cash. These are mainly measures to ensure that you are serious and not just some curious seekers or bargainers.

Increasing competition is relaxing the rules for setting up accounts.

Some distributors will send you wholesale catalogs and price lists. One company sends three price lists: one is below the wholesale price so that you can sell in wholesale, the other provides the wholesale price, and the third provides the suggested retail price. Others will send you a CD after you register or give you access to photos and prices through their website.

Conclusion: Dropshipping is a profitable low-cost business with unlimited potential and can be successfully managed at home. Dropshipping is one of the greatest business innovations of all time. With a reliable distributor, your small family business can sell branded products worldwide like a large company.

 

Article source: http://EzineArticles.com/151149

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