| Drop Shipping, in a nut shell, is a form of inventory | | | | time instead of you. |
| management. For example, you have a small online | | | | There are advantages and disadvantages to using a |
| business. But you also have a small home, so you | | | | drop shipping service. One of the advantages is the |
| really can't store the amount of merchandise you need | | | | ability to offer a wide selection of items to your |
| to run your business successfully. This is the perfect | | | | customers. If you had to purchase the stock, and store |
| time to utilize drop shippers by registering with an online | | | | it, not only would you have to spend a lot of money |
| warehousing company like Salehoo. | | | | upfront, you would have to rent a place to store things. |
| How drop shippers work is very simple. Customers | | | | Your costs will skyrocket. |
| order items from your website and pay you the retail | | | | Nothing is perfect though, and some of the |
| price for the item. The order is then sent to the drop | | | | disadvantages could end up hurting your business. If an |
| shipping company you are working with. They will then | | | | item is very popular, it may end up being out of stock |
| locate the item in their inventory, package it, and ship it | | | | with the drop shipper, and then your customer is put on |
| directly to your customer. You are then charged the | | | | back order. You have less control over knowing |
| wholesale price for the item. Your profit is the | | | | exactly what the status of the inventory is. |
| difference between the retail price (what you charged) | | | | Drop shipping can be an affordable way to set up an |
| and the wholesale price (what they charged you). | | | | online business. There are many drop shipping |
| You can even have the drop shipping company use | | | | companies out there who would be willing to work with |
| invoices, return labels and all other communication with | | | | you. Be careful that you don't try to add another |
| the customer indicate your company name. This keeps | | | | website that sells the same thing as 100 other |
| the middle man hidden, after all, if they know you | | | | websites. Find your niche, and work from there. Happy |
| bought the product from a particular company, | | | | Ordering! |
| chances are they will use the same company the next | | | | |