April 25, 2018

All you need to know about Drop Shipping

There is no doubt that the internet has been opening up a million and one ways through which we could earn reasonable amount of money online without having to bother about a brick and mortar shop. 

One of such ways is through drop shipping. Drop shipping basically entails being a retailer without having to bother about warehousing or stocking up of goods.

In other words, it means that you can sell a wide array of goods to people both far and near without having to physically stock inventory at all, all you have to do is to place adverts and once you get an order from a buyer, you will then get in touch with your wholesaler and they will in turn ship it to the buyer on your behalf while you pay the wholesaler and pocket the profit you made.

Invariably, drop shipping is a smart way for individuals and home operated online business to make money without liabilities like rent, loans or having your money tied down as well as the risks involved in stocking or warehousing goods.

How to go about it

Regardless of the platform you intend to use whether Amazon, eBay, OLX, Jumia etc or even your own online store; all you need to do is to get in touch with a certified drop shipper(s) that offers the type of goods you want to sell and reach contractual terms with them while they will equally provide you with a catalogue of their product images for you to display on your website or any of the established platforms you may want to use.

You display the images in an attractive way and when a customer orders for an item, you will in turn contact the wholesaler for them to supply the goods to the buyer.

It is important to note that not all wholesalers offer drop shipping services but there are still several certified wholesalers that drop-ships goods at relatively low cost.

Another very important thing to note is that being a ‘Jack of all trades and master of none’ is a bad market strategy that equally holds true with drop shipping.

Granted that it may appear attractive to diversify your goods and increase your chances of getting buyers from a wider spectrum of target audience but wholesales are known to always give discounts when you purchase in bulk.

In essence, the unit price for a particular item when you are sending request for one may not be the same when you are requesting for five and when you take cognizance of the fact that you are the only one selling such goods and your price may not be competitive enough which means that rival sellers may eventually knock you out of business by selling at cheaper rates.

In other to avoid such misfortune, you may need to conduct market research on the type of goods you intend to sell and how viable they are before plunging headlong.

You will also need to do a background check on the wholesaler you want to work with to avoid being scammed by dubious people. The fact still remains that drop shipping is profitable and a lot of smart people are leveraging on it to make money.

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