Read about dropshipping, the supply chain management method that has taken the e-commerce world by storm. Find out what exactly is drop shipping, what different kinds there are, where to find a dropshipper and how to automate the dropshipping process.
You
probably won't have spent much time in online retail before you hear of
dropshipping.
So
what is it and how do people make money off it. Quite simply the community of
drop shippers and their clients is an ever growing one, a commuity serviced by
several blogs and dozens of forums.
Put
quite simply dropshipping is a supply chain management system where the
manufacturer ships the products directly to the retailer's customer but the
retailer makes the profit.
This
means the retailer doesn't have to pay for, or store, items he won't sell
freeing up space and money. It also reduces the number of hands the item passes
through as the product goes directly from the wholesaler to the customer.
However,
there is still a large number of retailers and traders on the internet who
still have a lot of questions about dropshipping. Some of these questions
include:
How does the dropshipper guarantee my customers won't just start
buying directly from them?
I've seen lists of dropshippers for sale on eBay, are they any
good?
Won't I still have to transfer customer details to the
wholesaler, won't that remove some of the timesaving benefits of drop shipping?
How does the wholesale drop ship company guarantee my customers
won't just start buying directly from them?
There
is no shortage of dropship company service providers: dropship agents,
wholesale dropship suppliers and dropship wholesalers are among some of the few
service providers. However, most guarantee clients retain customers in one of
two ways: ‘blind’ shipping and private label shipping
Blind shipping: When drop shipping
companies send out products without any of their own advertising or logos on
them.
Private Label dropshipping: When the client of
the dropshipping company provides shipping notices to go in with the package,
allowing the client to customize and ad value to orders.
An
industry standard is a long way from being developed though and a number of
firms offering a dropshipping service could be heavily in debt, be operating
fraudulently or not offer you the best service.
I've seen lists of dropshippers for sale on eBay, are they any
good?
You
don't need to have spent much time on eBay to have seen the list of
dropshipping companies and dropshipper wholesale suppliers for sale on the
site, often for a very low price.
Unfortunately,
these lists are often filled with these dead or fraudulent sites, meaning they
aren't even worth the little money you initially paid for it..
You
will often enjoy more success by approaching a wholesalers or factory agents
directly or using a wholesale dropship company. They usually keep up to date
more regularly and are more reliable at sending out products.
But
wont I still have to give the wholesaler each of the orders?
By
making some adjustments to your payment system you should be able to get
customer's details sent to your drop shipping company automatically.
The
first thing you will need to do is to set up your shopping cart so that it will
notify the drop ship website automatically when a customer has placed an order
and pass on all the customer’s details in a format suitable for the drop
shipper to fill out the forms necessary to start the shipment.
Most
e-commerce sites already have a shopping cart but they will need to check that
their carts are compatible with their wholesale dropshipping company's invoice
system and then find out what needs to be done to make the whole process
automatic.
It
is easy to see why drop shipping has become more popular, it reduces the amount
of times an item has to be handled before it gets to the end customer. With a
little more research
, you
too could be reaping the benefits of this exciting this exciting supply chain
management process.
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