Wed 20 Jun 2007
The Advantages of a Drop Shipping Business
If you are looking to start a small business, consider becoming a drop shipper. Drop shipping is a method of shipping products from the manufacturer to the end-user without any involvement of a middleman like a distributor. There are various advantages of having a drop shipping business.
Drop shipping requires low investment in capital. You don't have to invest in stocking products. Unlike distributors, a drop shipping merchant does not have to invest in inventory. There is no fixed overhead and the cost of inventory will vary.
There is no problem with stocking products that will not sell. As a drop shipper, you are not bound to having to sell certain products in a specific time period. Your job is to simply pick up the product from the manufacturer and deliver it to the customer.
Drop shipping a product is much less expensive, as it does not involve paying a middleman. Instead of buying goods from a dealer at wholesale price, businesses can save a lot of money by using a drop shipper.
Loads of Profit
Once you've gotten started and the business is doing well, you can expand your drop shipping business. You can sell other business' products with your existing products and services to make additional profit. You earn money from the supplier of the product or service and then you can sell the products for a higher cost to customers. This way you make a profit from both ends.
Easy and Flexible Work
The work of a drop shipper includes picking up the product from the manufacturer, packing and delivering it to the customer. You can drop ship as few as one item at a time.
Having a drop shipping business can be very lucrative, with none of the headaches of a ‘traditional' business — all you have to do is get started!