Drop shipping is a kind of management between wholesalers and retailers. In this business, retailer does not keep goods in their store though sometimes they keep samples of products to display for customers for better look and feel. There are lots of suppliers who offer drop shipping.
How Drop Ship For Benefits?
Drop shipping best practices had been started primarily by developed countries such as USA and China. They are actually the inventor of this fundamental. They offered drop shipping for both wholesale orders and individual orders.
Retailer creates merchandise, promotes products, and forwards customers order to the wholesaler or supplier, and then the wholesaler ships products directly to the customers without any involvement of retailers thus far. The benefits have been shared between wholesaler and retailer as per agreement.
How To Make Money Online Drop Shipping?
The idea of drop shipping enables lots of opportunities for small investors and for them who want to make money online. Drop shipping is also a kind of affiliate marketing. Affiliate marketers find suppliers, who offer drop shipping services, and set up an agreement or an account to take the authority to sell their products.
The suppliers who offer drop ship usually have contacts with drop ship service providers. Once an account has been setup, affiliate marketers get photos and description of the products which they would like to sell and promote online or offline.
All online methods of promotion of drop ship products are very similar to the methods of affiliate marketing, for example, website, blogging, PPC marketing, social media marketing, email marketing, etc.
Major Drop Shippers
Drop shipping has been frequently used by big suppliers who deal with big orders. Orders like heavy equipments, building materials, and industrial equipments have been dealt on the basis of drop shipping management where retailers get payments in advance from the customers and make arrangements of shipping with wholesalers.
Pros And Cons Of Drop Shipping
As every business involves with some risks and benefits factors drop shipping too. Risks like backordering frequently affect retailers and small business orders. There should have been a good relationship and well-informed understanding between the retailers and suppliers.
In drop shipping business, suppliers play the most important role in terms of business and related profit. When the supplier does a great job in shipping goods, only then they both make profits.
Be aware of scams. Drop shipping has also been emerged as Internet business scams. Do not just trust on every one. Make a close relation with suppliers. Take all the agreements in advance. Make clear ideology and proper supply chain management system.