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Drop Shipping

I am assuming a lot of people would know about drop shipping but I only recently discovered this process while doing some research.

Basically, it involves taking orders from customers, then sending these to your suppliers and asking them to send it directly to your customers. Apart from the obvious advantage of saving cost in logistics, there is a real benefit of no inventory management. Plus no real cash required to get started, since you only order from supplier when you have orders from customers.

The disadvantages are off course longer delivery timeframes, no control over quality and unforseen situations.

But advantages still outweigh the disadvantages. There is a company by the name of oo.com.au which sells everything from electronics to furniture and home decor to garden supplies. Almost like a combination of JB HI-Fi and Bunnings Warehouse but much cheaper. This company was started around early 2000’s and they only had an online store to order from (which they still do).

Its now such a big company grown on the basis of drop shipping. Same is true for majority of the ebay stores which don’t stock anything. They order from suppliers as needed.

Its a safe idea but the real trick is to know what product to order. There are already 100’s if not 1000’s of people selling so many different products the same way. Finding the right one, therefore is the key.

 

 

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One thought on “Drop Shipping

  1. Give the customer a convenient method of asking questions regarding the product status and there is very less you need to worry about. For example, they can shoot an email to you regarding queries such as stock availability, delivery or ETA etc – You avoid stocking up like store retailers where good physically need to be present, no need to feverishly update stock status on your portal and be a happy reseller in business 🙂

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