| Drop shipping is a distribution method used mainly by | | | | online store and then find out if it is well established and |
| online retailers to fulfill orders placed by customers on | | | | reputable. How many years have they been in |
| their e-commerce site. With a drop ship program, the | | | | business? Are they able to deliver what they promise? |
| retailers do not carry any stock, instead all of the | | | | Are you able to make a profit based on the price you |
| products are held as inventory by wholesalers or | | | | are getting the goods for? After you picked out the |
| sometimes even the manufacturers themselves. As | | | | best of the bunch, contact them about their services |
| soon as an order is placed, the online retailer collects | | | | and make a small investment by ordering a few |
| shipping information and payment then transfers the | | | | products. Then narrow it down by comparing the |
| customer order to the drop shipper to complete. They | | | | quality of each product, the delivery time, how fast |
| are then responsible for shipping all of the items that | | | | they respond to inquiries and how well they are able to |
| are ordered out to the customer. The online retailer | | | | customize the packing slip and shipping label to match |
| makes a profit off of the difference between the | | | | your business logo. |
| wholesale price and retail price. | | | | After you made your decision about which vendors to |
| Drop shipping is a great way to start an e-commerce | | | | use, you have to make sure that your e-commerce |
| business without a lot of start up cost. In fact many | | | | solution is able to manage your drop ship program. |
| home based businesses have become quite | | | | Make sure the following features are provided: |
| successful using this method to sell online. The fist thing | | | | - QuickBooks integration for easy point of sale |
| you need to do is find the right vendors to work with. | | | | management and tracking |
| There are thousands to choose from, but not all of | | | | - Create unlimited amount of vendors |
| them are reliable. This step seems pretty simple, but | | | | - Instantly contact vendors when their products are |
| the fact of the matter is that finding the right vendor | | | | ordered |
| for your drop ship program can make or break your | | | | - Real-time shipping calculations based on drop ship |
| business. The key is to spend a lot of time researching | | | | location and carrier |
| all possible vendors and selecting ones that you feel | | | | - Admin log-in area for vendors to add products or |
| would work well with you. Think of it as a partnership, | | | | update inventory |
| you take care of the first part of the order and they | | | | People generally choose to run a drop ship program |
| take care of the rest. The only way to have a smooth | | | | for their business, because of the freedom it entails |
| running e-commerce business with satisfied customers | | | | and minimal risk involved. There are a few |
| is if both parts work well together. | | | | disadvantages such as not having control over the |
| The first step is compiling a list of potential vendors to | | | | merchandise and not being the only retailer they work |
| include in your drop ship program. Search for vendors | | | | with. However there are many advantages for starting |
| that supply products you are looking to sell in your | | | | this type of business. |