Once you have closed a deal and sold your product, your next task is to send it to your customer’s way. Shipping always has an effect on your standing as an online seller which is why you need to do this right.
One option you have is drop shipping. This is a supply chain management method where the seller does not keep his products in stock. Instead, customer orders are handled by the wholesaler or the manufacturer.
In online businesses, a seller lists an item as new and ships it directly to the buyer from the wholesaler. Profit results from the difference between the retail and wholesale price. Alternatively, sellers may also earn based on a commission agreed upon with the wholesaler.
The slight delay between the order of an item and its shipment is not a bad thing in this set up. In fact, it is a good thing because customers do not expect to walk out with their purchase. This is why it is preferred by small businesses and online retailers.
Another thing that is good about is control over your inventory. In drop shipping, you do not keep a stock of the items you have for sale. In effect, there is no need for a storage area and employees to handle the items and secure them from theft. This means fewer expenses to spend on.
Of course there are manufacturers who would refuse to drop ship their products. They might require someone to oversee shipment and processing orders. Some only accept bulk shipping which may not be an option for your business.
The problems outweigh the benefits though. As an online entrepreneur, you will have more time to spend on other business matters.
