What is Dropshipping?
For many years companies have use dropshipping as a means to move merchandise to customers. It has become very popular especially with smaller businesses. It is one of the tools that business uses to enlarge the staff and to enhance the service. It also saves overhead expenses and time.
It just makes great sense if you are selling online, and especially if you are the only in your business, to use a drop shipper. When you use a drop shipper you have a larger inventory to offer your clients. Most companies do not have large warehouses to store merchandise even more so most companies cannot afford to rent or own a large storage facility. Many companies operate from one room in the home and use drop shipping to extend the company facilities. It is a very easy process if you want to use a drop shipper to help you move your merchandise. Some businesses have become a success because they have used dropshipping to enhance their operating procedure. When you are using drop shipping as a means to move your merchandise or to send orders you really don’t have to leave your home office.
Most homes today have computers and use them to sell merchandise online. All you have to do is send the wholesale cost of the merchandise to your drop shipper and the name and address of your customer and the dropshipping company will send your merchandise right to your client’s door. This saves you a lot of time because you don’t have to address labels you don’t have to wrap packages and then go to the post office. You may stay at home and do all of this from your desk. It is much more convenient to dropship when you are getting your merchandise from the same company that is doing the dropshipping. Check with your drop shipper and become very familiar with the rules and regulations of the company. In many instances you can save cash if you order larger quantities of goods from the company. This sometimes depends on whether you are dropshipping retail or whether you are dropshipping wholesale. There are many companies who sell both retail and wholesale and will dropship for both. Perhaps the most important thing you need to know before you start dropshipping is policies of the company. They are always open to negotiation.
The company policies will let you know what is possible. One thing you need to consider is what you will do with the merchandise if it is returned. Some dropship companies will not allow you to return merchandise. Some companies who offer to do dropshipping will sale return merchandise locally. Don’t forget to check out the dropshipper’s reputation; in addition find out how long the company has been in business. When a company has been in business for a while you will know it by the way he does business. Reputation is everything.