Drop-shipping simply means that a manufacturer or distributor is willing to ship a product on your behalf to the final purchaser of that product. Dropshipping simplifies the process of E-commerce and is basically just a very logical, and streamlined means of doing business on the Internet. If you are working in cyberspace then the process of dropshipping is a very logical concept.
With the click of a mouse, the purchased product moves directly to the purchaser, and an email is sent to the seller, notifying him or her of the sale of the article or articles from the storefront. It is as though the products magically transport themselves from point A to point B, the seller never has to be involved in the distribution end of the business, the dropshipper takes care of that area of the business. This eliminates a tremendous degree of work and expense for the seller.
Dropshipping eliminates the need of the business owner to pre-purchase products to sell on their storefront and thereby greatly reduces costs of doing business. Not only does money not have to be tied up in purchased stock, but a warehouse or business location is not needed to store stock for the business, these two steps drastically reduce the cost of doing business. An Online dropshipping business can thereby be set up with very minimal capital invested, making doing business Online a viable opportunity for virtually any person who has access to a computer, and access to the Internet. Opening an Online business using the dropship method can be accomplished at a fraction of the cost that opening a business in your local community would cost.
The process of Dropshipping can be done in a number of manners. The first step is that you need to have in place an arrangement with a manufacturer or wholesaler to dropship articles for you. Then you promote the articles, sell them, and pick up your share of the profits. If you have an agreement with the dropshipper to have them handle customer service and any returns of the products then the supplier handles the other aspects! Always make sure that the dropshipper is willing to handle returns, this makes the process much easier, and safer for you. It can greatly reduce the risk of Internet fraud affecting your business.
Once you have an agreement with a manufacturer or distributor in place you select how you would like to promote and sell the articles. You can dropship articles with or without a website. You can run your dropshipping business without a website
and just list the dropship articles on other sites such as eBay Canada or eBay USA or yet another option is to open an Ebay storefront.
If you have some experience with html and creating websites than you can create a website on any topic that you like, and then feature articles, or links to the items that you would like to sell. You can set up your own web storefront, or you can create an aliance with a reputable company which has gathered together a number of products for dropshipping, and you can purchase a storefront with them.
If you join up with a pre-existing drop-shipping company you may be required to pay an upfront hosting fee, or additional dropship fees to have them then dropship the products that you will carry on your storefront. This cost is largely justified, as the dropship company then hosts a website for you, as well as does the majority of paperwork, and distribution work for you etc. Just be sure to read all the fine print of the contract before you sign as there are always more than a few bad apples on the Internet trying to take advantage of unsuspecting individuals. If you are wary or unsure of the deal then have a more experienced person reveiw the contract or walk away!
My advice to anyone entering this new field is simple. Costs of doing business on the web are very low compared to the costs of opening the standard business. So your start up costs will not be very high; they can range anywhere from a few dollars to a few thousand. Figure out what you are willing to invest and be prepared to work just as hard at an online business as you would at your standard retail store. There is safety in numbers and with costs of doing business on the Internet so low, don’t be afraid to expand your business, or to branch out in different areas of interest. Just remember to do your research, read every word of the fine print, and then jump in with both your hands clasped in a prayer. What do you to lose? What do you have to gain?
Good luck!
