Send your way to Wealth
Your customer sees a great array of products our website. After careful consideration, he He buys the product he wants. Surprisingly, you Never really seen. That is Because your supplier sent the order directly
1. Difficulty in stocking inventory
After deciding which products you will sell, you are
There were many immediate challenges. First: “In order to stock my product, I need to hire Store or warehouse space? I was hoping to sell
Via internet, mail order, or export, but I don. No t There is plenty of room for inventory at home. ” Second: “Will the supplier deal with me if?
I don’t have a retail space? I was counting Operate and keep your head down Home.” Third: “I know a lot of manufacturers and
Distributors have minimal orders, sometimes I don’t need thousands of dollars like that Money! ” ourth: “Even if I had money, why should I?” I tied in the inventory? How do I know if?
Will the product also sell? ”
Fifth: “I think I have to take out extra insurance
Coverage for my inventory. Maybe I’ll upgrade better
My security system when I’m on it. ”
Sixth: “Shipping charges will kill me.
First of all, I have to pay to get the goods here
(Freight in). Then, I have to pay to send the goods
To my customers (freight out). ”
Seventh: “If I expand and hire employees, what will happen?
Do I control inventory? How will I know if mine?
Employees stealing from me? ”
Eighth: “How much time and money will I spend?”
Packaging and fulfilling orders? ”
These problems can be reduced or eliminated by drop
2. Leave the ship on rescue
Drop shipping is a way to sell goods
Without storing inventory yourself. You don’t need
In stock inventory, because you only order something
When a user requests it.
With drop shipping, you get in touch when you seal
Manufacturer or authorized distributor and manufacturer
Order payment arrangements on your wholesale
Costs. Your distributor then sends the product
Customer with your invoice and shipping label.
For example, suppose you have just made a sale
Customer 100.00 plus product for shipping to any customer
charges 15.00. Customer welcomed
Payment, now you need to fax or otherwise send
Order your drop ship supplier. You will need
Borrow from your supplier, by credit card or other means,
Your price is 50.00 plus $ 15.00 shipping. This
Leaves you with a gross profit of .00 50.00. Your supplier
We will now send the product to your customer.
With this non-storage arrangement
Inventory itself, has many advantages.
You eliminate the high cost of holding inventory.
You do not need to rent expensive storage
Stuck with space, high minimum order financing
Goods that don’t sell, or pay other costs
Associated with maintaining inventory.
Indirectly, you pay the inventory cost. Your drop
The shipping provider must maintain its inventory and make the payment
All associated costs, including freight in storage
Space, insurance, accounting, shrinkage, etc.
In order to make a profit, he must pass on these expenses to you.
The real advantage of this drop shipping management
It involves keeping your expenses variable. Instead of being
Keep these costs in mind, even if you sell
Or not, you only pay when you sell.
3. Profit from drop shipping
Many legitimate drop ship suppliers may not be required
You have to have a retail space, but they will
See proof that you are in business. They can
You need to create a resale license or retail
Sales tax permit.
To be sure, there are flaws to look inside
Get the luggage down. For example, some suppliers claim
To sell at wholesale prices but actually selling
Also close to retail, some have very thin margins
Competitive areas such as electronics. However,
With proper research and information, you should
Able to avoid these problems
Whether from your home, from a retail store, directly
Through your website or an online auction, you can
Arrange to sell something before you buy it. They
That way, you don’t have to invest in inventory
Stuck with stocks won’t sell.
Instead of financing and storing inventory yourself,
Consider leaving wealth on the way.