An Introduction to Dropshipping, Dropship and Dropshippers

Dropshipping is becoming more and more popular with the rise of e-shops online who look for reduced overheads. The term derives from basic supply chain management where a retailer doesn’t have a product in stock and so they transfer a customer order and shipment details to either the manufacturer or a wholesaler, who then sends the product directly to the dropship customer. Like with all retail businesses, the retailers make their profit on the difference between the wholesale and retail price.

Ok, so tell me more…

Dropshipping is potentially highly beneficial to smaller retail outlets, web-based stores and those who principally use catalogues for sales. In these circumstances, customers don’t usually expect to walk away with their purchases in hand, so a delay between ordering and shipping is not considered to be a problem. In many cases, a product seen in a catalogue could be housed thousands of miles away from the retailer in a factory warehouse.

So what are the real benefits?

• You don’t need to invest much money to become a retailer.
• You can create your own business with very little risk attached.
• If a product isn’t selling, you’re not left with lots of dead stock as you don’t have to hold an inventory.
• Smaller shops can offer large-sized products, or exotic produce, without worrying about storage space or import costs. Manufacturers also benefit from reduced shipping costs and heightened sales exposure for their products.
• Shipping and packaging is all taken care of by someone else, and so are the returns.
• You purchase products at trade prices and are then free to set your own pricing structure to suit your margins.

If you are looking for reliable dropshippers, in tandem with excellent profit margins, Dropshipping Directory is your first port of call! You could be in business and taking your first orders within hours.

Are you a Dropshipper or Supplier?

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