How Does Wholesale Dropshipping Work







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How Does Wholesale Dropshipping Work




Drop Shippers and You


Are you looking for a stay-at-home business where you can earn enough money for yourself and your family?  You have heard so much about people who have sold on eBay and made a bundle but you are afraid that you might invest and lose.  There are the stories and nightmares told by those who have also lost their shirt.  You cannot afford to do this but you feel that you must do something as your company is closing and moving out of the country.  What a dilemma for anyone to be involved.


Drop Shippers and Distributors have approached you with emails and the like trying to get you to invest in their sure-fire business.  That they guarantee that you cannot lose is no comfort because you have no backup proof of their existence. The problem even though they give you this promise you have no way of knowing how reliable this Drop Shipper may be.  What does a drop shipper have to offer that will help you in your business adventure?  What am I to look for when trying to select a good drop shipper? It has been said that about 90% of business people go out of business not because of a lack of effort or a good business plan but because they were misinformed.  Lack of information is the killer to almost all businesses.  Just like traveling, you should have a GP Tracker or at least a road map.


That is why a Wholesale and drop-shipper catalog was created for those who are new in business and for those who are very active in business.  If your plans are to remain in this business you need to keep up to date at all times.  One thing is for sure you must know what is going on at all times keeping up with the hottest of products.  The catalog is your road map to good business health.   The Distributor has also become the drop shipper now that the advent of a virtual shop on the web has made it possible for anyone to set up shop.


The drop shipper has become a virtual Angel for anyone who wishes to set up a business with little or no money.  The drop shipper provides the product and delivery method at no cost to you.  You just maintain your store and do the marketing while the drop shipper provides the product and delivery.


There are various ways that you can sell products and use a drop shipper to help you with storing the product and delivery of the product.  One way to earn money online is to join an Affiliate Program where many manufacturers will give you a cut of the profits on products that you sell for them. Sell your products on eBay it requires no more than a computer. Once you become an active trader, you can ease into a Website by opening up your own eBay store.  You can use Google's AdSense to put an ad that is relevant to your website when a visitor clicks on the ad they automatically go to your site. Remember to sell drop-ship products to keep your expenses down and the product quality up. 


How Does Wholesale Dropshipping Work


Wholesale Dropshipping has become a booming business.  This business is global in nature because everywhere in the world there is some Dropshipping taking place.  It is a very simple process that retail businesses enjoy using.  The wholesale Dropshipping business has one primary function and that is to move merchandise from warehouse to customer for the retail businesses.  Because of this wholesale Dropshipping business, people all over the world can enjoy merchandise from any other part of the world.   Before the start of wholesale Dropshipping, the same merchandise was shipped by the wholesaler and again by the retailer before the customer received it.


In other words, the retail company used to order from the wholesale and then have to ship to the customer.  With the use of wholesale Dropshipping service the retailer can simply send the name and other customer information to the Dropshipping company and the wholesale Dropshipping company will send the merchandise directly to the customer.  Dropshipping has become as common as going to the post office.  Profit by the retailer is made on the difference between the wholesale price and the retail price.  Every other company at one time or another uses a Dropshipping company to deliver goods to a customer. The Dropshipping business has helped many small business owners to stay afloat.  The expenses of a company are considerably less when Dropshippers are used.


The complete shipping process for the retailer is modified and the wholesale Dropshipper redefines the shipping process.  Many jobs have been reclassified because of Dropshipping.  Some personnel have found it necessary to do other jobs than what they have been accustomed to doing.


Just about every other business uses a Dropshipper to move merchandise to customers.  If you have an online business or a catalog business Dropshipping is one of the best ways to get merchandise to your customer.  Dropshipping is an easy and friendly process that can be used and enjoyed by all businesses.  Dropshipping has enhanced the bottom line for many large and small businesses The two most important things that Dropshipping helps retailers with are, that it cuts down on paperwork and it cuts out the shipping steps.


With wholesale Dropshipping a whole new world economy has become available.  The retailer can find customers all over the world any items anywhere in the world that you may need or desire can be found online and drop-shipped to you. Whatever you wish to sell can be found in one form or another through the wholesale Dropshipping process. Dropshipping has become a quick and easy way to get started in e-commerce.  Two other advantages of Dropshipping are in the case of a small business no money is invested upfront, and the second advantage is that there is no danger of having unsold merchandise in your inventory.  After all when you use the Dropshipping methods you purchase merchandise only when you have sold merchandise.  Therefore you do not have to worry about an oversupply of one item and an undersupply of another item when you go the wholesale Dropshipping way.


How dropshipping helps a business


Dropshipping can add to the bottom line of any business large or small. Many businesses thrive off of dropshipping because it cuts down on their overhead.  Services can be cut out and staff also when a business is dropshipping.  For that reason, businesses find it economical to dropship to most of their customers.  Dropshipping gives businesses flexibility in their day-to-day operations. A limited number of staff members can be used to get a large volume of work done.  This adds to the bottom line at the end of the year.


Dropshipping also cuts down on staff training and orientation.  There is no need to train personnel how to ship merchandise when a drop shipper is used.  If it is a proprietorship business, and the proprietor works from home, there is tremendous savings in the gas bill alone.  One room in the home can be set up to operate a successful business if a drop shipper is used.  So there is no need to buy furniture and expensive equipment.  The average home operation can survive and thrive off of a few pieces of office equipment.


The computer is one of those pieces of equipment that is a must-have for the average small home business.  In addition to dropship, it becomes necessary in many instances to have access to a fax machine.  And of course, you must have a bell to call your dropship company from time to time and your customers.  Most of the dropship companies that have been in business for a while and know their way around will give you a quick turnaround on all of your orders.  When you use a dropship company there is no competition fold good-quality help.  When you compete for help that increases your expenses because good help has to be paid a decent salary and you have to factor in benefits such as insurance, sick leave, and paid vacations.  Drop shipping is a wonderful tool for small businesses with limited staff and limited resources. For many businesses, it is hard to see a difference between expenses and income that equals profit.  So choosing a dropship company is of uttermost importance.


After all, businesses are in business to make a profit.  But by using a dropship company, the chances of making a profit are more of a reality.  When you factor in all of the benefits that have been deleted by using a dropship company and all of the expenses saved by working out of your home, chances are great that you will have success in your business. Drop shipping is a great way to cut corners when you are in business.  You don't even have to keep up with the changes in shipping rates and rules and regulations.  We all know that they are constantly changing especially since the 911 event. Dropshipping helps a business to become more efficient and gives the customer a quicker turnaround.  All customers want a quick turnaround when an order is placed you sometimes start looking for the item the very next day or two after the order has been placed.  Drop shipping gives one of the fastest turnaround of all methods of ordering and shipping. Let's face it they have the tools and the necessary staff to do the job right.  Drop shipping is an asset to any business.


How much does the Dropshipping cost?


The cost of Dropshipping is determined by the Dropshipper.  You need to know the cost of Dropshipping before you start Dropshipping.  You need to thoroughly research and look for companies that offer Dropshipping services.  Some wholesale companies as you no doubt know will not drop ship for you. Others will drop ship for an additional fee.  It will enhance your bottom line if you find a company that’ll drop ship at no cost other than shipping and the cost of the merchandise.  Some companies will charge a small membership fee at the beginning nevertheless this membership fee will be given back to you after you have made a certain number of purchases.

If you sign up with a company that charges a monthly fee you could end up giving away your profit for a month or two. You need to know all the costs of Dropshipping so you can accurately calculate your profit.  Be sure you get an itemized list of expenses from your Dropshipper.  You need to know the cost of the item, the charge for shipping, and taxes if any.  Be reminded that some states charge an additional tax on purchases.  If you are paying a monthly fee to a Dropshipper you have to also prorate that fee into the total cost.

Remember there are always scams lurking to take advantage of beginners and others in any situation.  You can always check with the Better Business Bureau to see if there have been complaints about the business dealings of any one of the Dropshippers you find.  Check with your Dropshipper also to see how your account will be calculated.  It is important to know whether you will be charged piece by piece or whether you will be charged on a monthly timetable.  Find out if the company accepts returns or what the return policy is.

If the company does not accept returns, then you may have to factor into your records a loss for that month.  So that you will be able to adequately determine the cost for Dropshipping, get all this information in writing before you start working with a company.  Drop shipping can be a very efficient way to start a business it can enhance the bottom line of any business but you need to know all the facts up front before you start.  Even more so you need to let your customers know the return policy because eventually, this can define your bottom line.

Don't forget to get the company’s policy for damaged merchandise. Some companies will accept returns on damaged merchandise and some companies will not accept returns on damaged merchandise.  Wholesalers that dropship sometimes are reluctant to accept merchandise that has been opened and damaged.  So make sure you get in writing the policy the company will adhere to for damaged merchandise that has been opened.  Damage merchandise that the company will not accept as a return will be part of your Dropshipping cost on the bottom.


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