Drop shipping is a distribution method primarily used by online retailers to fulfill customer orders from their e-commerce site. If retailers use a dropship program, they do not hold any inventory, instead all of the products remain with the wholesalers or sometimes even the manufacturers. Right after an order is placed, the online retailer receives shipping information and payment then the customer order is transferred to the drop shipper to be completed. They are then responsible for shipping all of the items that have been ordered out to that customer. The online retailer makes a profit off of the difference between the wholesale price and retail price.
Drop shipping is a wonderful way to start an online business without a lot of start up cost. In fact several home based businesses have grown to be very successful by taking advantage of this method to sell online. The first thing you must do is find the right vendors to work with. There are a wide variety of vendors to choose from, but they are not all reliable. This step seems relatively easy, but apparently finding the right vendor for your dropship program can make or break your business. You should focus on researching all applicable vendors and choosing ones that you think are a good fit for you. Consider it a partnership, you handle the first part of the order and they take care of the rest. The only way to have a successful e-commerce business and satisfied customers is if both parts work in unison.
The first step is coming up with a list of possible vendors to use for your dropship program. Search for vendors that offer products you are looking to sell in your e-commerce site and then find out if it is well established and reputable. How many years have they been in business? Do they have the ability to deliver what they promise? Are you able to make a profit based on the price you are getting the goods for? After choosing the best ones, contact them about their services and make a small investment by ordering a few products. Then eliminate some by comparing the quality of each product, the delivery time, inquiry response time and how well they are able to customize the packing slip and shipping label to match your business logo.After making your decision on which vendors to use, you must make sure that your e-commerce solution is capable of managing your dropship program. Make sure they are able to provide the following:
People usually choose to use a dropship program for their business, because of the freedom it offers and low level of risk involved. There are a few disadvantages such as not having control over the merchandise and not being the only retailer they work with. However there are also several advantages for building this type of business. Here are just a few:
Drop shipping is a wonderful way to start an online business without a lot of start up cost. In fact several home based businesses have grown to be very successful by taking advantage of this method to sell online. The first thing you must do is find the right vendors to work with. There are a wide variety of vendors to choose from, but they are not all reliable. This step seems relatively easy, but apparently finding the right vendor for your dropship program can make or break your business. You should focus on researching all applicable vendors and choosing ones that you think are a good fit for you. Consider it a partnership, you handle the first part of the order and they take care of the rest. The only way to have a successful e-commerce business and satisfied customers is if both parts work in unison.
The first step is coming up with a list of possible vendors to use for your dropship program. Search for vendors that offer products you are looking to sell in your e-commerce site and then find out if it is well established and reputable. How many years have they been in business? Do they have the ability to deliver what they promise? Are you able to make a profit based on the price you are getting the goods for? After choosing the best ones, contact them about their services and make a small investment by ordering a few products. Then eliminate some by comparing the quality of each product, the delivery time, inquiry response time and how well they are able to customize the packing slip and shipping label to match your business logo.After making your decision on which vendors to use, you must make sure that your e-commerce solution is capable of managing your dropship program. Make sure they are able to provide the following:
- QuickBooks integration for simple POS management and tracking
- Create unlimited amount of vendors
- Instantly contact vendors when their products are ordered
- Real-time shipping calculations based on drop ship location and carrier
- Admin log-in area for vendors to add products or update inventory
People usually choose to use a dropship program for their business, because of the freedom it offers and low level of risk involved. There are a few disadvantages such as not having control over the merchandise and not being the only retailer they work with. However there are also several advantages for building this type of business. Here are just a few:
- Little to no inventory
- Saves time by letting someone else handle the order fulfillment
- Saves money by not requiring a lot of overhead cost
- Product images and details are already available for you to use on your site
- Large selection of products to choose from which allows you to sell more than you could on your own
Finding an e-commerce solution with an efficient and reliable dropship program is critical to the success of your online retail business. You can't just hope for reliable drop ship vendors, the best way to guarantee that they are properly doing their job is to be able to track and manage their activities from your store admin.
What you need is a full service all-in-one hosting, design, and marketing software made specifically for e-commerce businesses. One that lets you set up your store in minutes, and provides powerful tools to help with not only managing your dropship program, but also SEO, product marketing and mobile commerce. Check out the best possible e-commerce solutions available at http://www.makeanonlinestore.com and try them out yourself absolutely free, no credit card required!
What you need is a full service all-in-one hosting, design, and marketing software made specifically for e-commerce businesses. One that lets you set up your store in minutes, and provides powerful tools to help with not only managing your dropship program, but also SEO, product marketing and mobile commerce. Check out the best possible e-commerce solutions available at http://www.makeanonlinestore.com and try them out yourself absolutely free, no credit card required!