The Advantages – And Disadvantages – Of Using Drop Shipping

Drop shipping is the method of a retailer promoting an item for sale without it being physically stocked by that retailer. Instead, a wholesale supplier carries the product in stock and sends it to the end customer when an order is made. This is a great system for people who do not want to invest their money in stock for their retail online business, or simply do not have the means to do so. It is a very lean way of smaller companies doing business alongside larger companies who they would not usually be able to compete with.

There are a few drawbacks associated with drop ship sources. Often, the shipping time between to the customer can take longer than is desirable. This is usually due to a drop shipper being a hub for many different sellers and there can be a wait to ‘pick and pack’ goods from the warehouse. Unfortunately, if this is a particular problem for the drop shipper you use, it reflects poorly on your business rather than theirs, as the customer sees you as the retailer, not the drop shipper.

If you find a reliable drop ship supplier with efficient processes in place, this can be a rewarding and interesting way to make money online. The best sort of drop ship source to use is one which is also a wholesaler, as this will negate any additional costs that may be added if a drop ship supplier is a middleman between a wholesaler and a retailer.

If your supply chain, and that means your drop ship distributor, is reliable and trustworthy, it can be the difference between success and failure in the online business. Remember to keep our tips and advice in mind and you should be more than prepared to make the right moves when it comes to sourcing wholesale products and finding the right ways to sell the items.