If you are trying to start or expand your internet retail business, one challenge is finding a reliable source of products. If you can’t find the lowest wholesale price, you may be losing a large amount of your profit margins trying to make up the difference. Plus, you need to find a distributor that has dependable ship times so your customers stay your customers for a long time. The solution to product sourcing is a drop shipper.
What is a drop shipper?
A drop shipper ships products from a wholesale supplier directly to your retail customers. Drop shipping connects your business with drop ship distributors, manufacturers, and wholesalers. This alliance allows you to find the lowest wholesale price on the products you desire in one place. Rather than searching and negotiating with different wholesale distributors, you can find a wide variety of them in one place. After you find the products, you set your retail price, the customer orders it, you notify the drop shipper, and the supplier will ship the product to your customer.
What are the benefits of a drop shipper?
There are numerous benefits of using a drop shipper for you online business. Here are some reasons to consider using a drop shipper.
You don’t have to invest a large amount of money in starting your business Become an entrepreneur with very little risk You don’t pay for inventory upfront, so you lose no money if a product doesn’t sell There is no need to buy packaging materials, or to set up a delivery account No managing of product returns Purchase products at wholesale pricing and set your own retail prices You manage your own profit No storing or managing inventory Test the market with little risk Cuts costs Saves you time
When you’re making a decision for product sourcing, your choices reduce down to whatever makes the most dollars and cents. Calculate the savings of using a drop ship supplier and compare them to the costs of using a drop-ship supplier. With a cost-analysis you can determine if the decision of using a drop shipper is a beneficial choice for your retail business.