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Global Drop Shipper Reviews
Global Drop Shipper Reviews
What Is Drop Shipping?
Although "drop shipping" does involve the shipping and mailing of products, overall it is more a method of retailing that has gained popularity
with the advent of online shopping. Basically, drop shipping is an arrangement that a retailer makes with a wholesale distributor. The retailer
sells the product, and the wholesaler then ships it to the customer complete with the retailer's label on the package. This arrangement
benefits the wholesaler who gains retail outlets and sales of a product, as well as the retailer who collects a percentage of the sale, but
doesn't have to worry about shipping or carrying an inventory.
Drop shipping has been used extensively by companies such as Amazon.com and Overstock.com to build up thriving online businesses that
require little or no initial investment in terms of inventory. What happens is that you as a retailer set up a Web site that sells products. When a
customer buys a product, they pay you for the product along with any shipping costs (example: product costs $20 with $3 shipping). You then
notify the wholesale distributor with the pertinent information. The distributor packages it, sends it to the customer with your label on it, and
bills you the wholesale price for the product plus shipping (example: wholesale cost $14 plus $3 shipping). You make a 30 percent profit for
your efforts.
The advantages of drop shipping are:
• No inventory
• No shipping
• You buy wholesale and sell retail
• Distributor supplies product information and new products
It can be challenging and very time consuming to find the manufacturers and distributors who are willing and capable of providing a drop ship
service. You may be much better off doing business with a full-service drop ship broker who has already done all the work for you. Most of
these companies have agreements in place with several manufacturers and/or distributors and can give you immediate access to a broad
spectrum of good quality products and reasonable prices. Many also provide an integrated website solution that already has the products
preloaded for you as well as other features like a built-in shopping cart (so you don’t have to set up a merchant account), automatic product
updates, order tracking, exchange/returns service and much more. iNetDropship is an excellent option.
When starting a retail business, inventory can easily be one of your largest expenses. Not only that, but over time you have to keep your
inventory current and stocked with the products your customers most want to buy. If your inventory becomes outdated, you might have to sell
it to a discount company at a loss. Overall, no inventory means less risk to you as a retailer.
Depending on the size of your business, shipping and mailing can expend a lot of your resources. This includes processing orders, packaging,
and making arrangements with a shipping company to pick packages up or taking them down to the post office yourself and mailing them. For
small businesses, it requires having one or more employees dedicating part of their workday to shipping, taking time away from other tasks.
For larger businesses, it means having a full-time mail room with perhaps a dedicated mail room supervisor. Either way, drop shipping offers an
alternative that alleviates shipping and frees your employees for other duties.
The great thing about drop shipping is that you never have to buy an item wholesale until you've already sold it retail. Not only do you benefit
from no inventory costs, you also profit from the difference between the wholesale and retail price. You have to get the best price you can
wholesale in order to stay competitive in the retail market.
The key to finding a distributor with the best price is to get as close as possible to the manufacturer of a product. Contact the manufacturer
and if they don't drop ship, they can recommend a distributor who does. (Please note that the distributor will require you to have a resale or
tax number to buy the products wholesale.)
Once you have secured an arrangement with a distributor, you can begin using their product information on your Web site. Larger distributors
have marketing packages and smaller ones will let you download pictures and information from their site. In addition, if the distributor begins
carrying a new product line, you have the option of adding it to your online selection. This keeps you current without having to do your own
research and development.
Although "drop shipping" does involve the shipping and mailing of products, overall it is more a method of retailing that has gained popularity
with the advent of online shopping. Basically, drop shipping is an arrangement that a retailer makes with a wholesale distributor. The retailer
sells the product, and the wholesaler then ships it to the customer complete with the retailer's label on the package. This arrangement
benefits the wholesaler who gains retail outlets and sales of a product, as well as the retailer who collects a percentage of the sale, but
doesn't have to worry about shipping or carrying an inventory.
Drop shipping has been used extensively by companies such as Amazon.com and Overstock.com to build up thriving online businesses that
require little or no initial investment in terms of inventory. What happens is that you as a retailer set up a Web site that sells products. When a
customer buys a product, they pay you for the product along with any shipping costs (example: product costs $20 with $3 shipping). You then
notify the wholesale distributor with the pertinent information. The distributor packages it, sends it to the customer with your label on it, and
bills you the wholesale price for the product plus shipping (example: wholesale cost $14 plus $3 shipping). You make a 30 percent profit for
your efforts.
The advantages of drop shipping are:
• No inventory
• No shipping
• You buy wholesale and sell retail
• Distributor supplies product information and new products
It can be challenging and very time consuming to find the manufacturers and distributors who are willing and capable of providing a drop ship
service. You may be much better off doing business with a full-service drop ship broker who has already done all the work for you. Most of
these companies have agreements in place with several manufacturers and/or distributors and can give you immediate access to a broad
spectrum of good quality products and reasonable prices. Many also provide an integrated website solution that already has the products
preloaded for you as well as other features like a built-in shopping cart (so you don’t have to set up a merchant account), automatic product
updates, order tracking, exchange/returns service and much more. iNetDropship is an excellent option.
When starting a retail business, inventory can easily be one of your largest expenses. Not only that, but over time you have to keep your
inventory current and stocked with the products your customers most want to buy. If your inventory becomes outdated, you might have to sell
it to a discount company at a loss. Overall, no inventory means less risk to you as a retailer.
Depending on the size of your business, shipping and mailing can expend a lot of your resources. This includes processing orders, packaging,
and making arrangements with a shipping company to pick packages up or taking them down to the post office yourself and mailing them. For
small businesses, it requires having one or more employees dedicating part of their workday to shipping, taking time away from other tasks.
For larger businesses, it means having a full-time mail room with perhaps a dedicated mail room supervisor. Either way, drop shipping offers an
alternative that alleviates shipping and frees your employees for other duties.
The great thing about drop shipping is that you never have to buy an item wholesale until you've already sold it retail. Not only do you benefit
from no inventory costs, you also profit from the difference between the wholesale and retail price. You have to get the best price you can
wholesale in order to stay competitive in the retail market.
The key to finding a distributor with the best price is to get as close as possible to the manufacturer of a product. Contact the manufacturer
and if they don't drop ship, they can recommend a distributor who does. (Please note that the distributor will require you to have a resale or
tax number to buy the products wholesale.)
Once you have secured an arrangement with a distributor, you can begin using their product information on your Web site. Larger distributors
have marketing packages and smaller ones will let you download pictures and information from their site. In addition, if the distributor begins
carrying a new product line, you have the option of adding it to your online selection. This keeps you current without having to do your own
research and development.
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