In today’s cut-throat eCommerce market, retailers are turning to Drop Shipping to send online orders directly to their customers. It’s a strategy designed to help them compete with rivals without spending more on inventory.When starting a new business, many people now open an online store instead of a traditional brick-and-mortar store, because it’s cheaper and easier. Now, sellers don’t even have to carry inventory.

WHY IS IT LESS EXPENSIVE TO BUILD A CUSTOM WEBSITE BUSINESS VERSUS BUYING AN EXISTING READY-TO-GO WEBSITES?

First, you are coming to Pure-Ecommerce with your own concept and domain name for a custom website. Second, websites are like real estate – it can take time for the domain name to generate traffic, so the longer a site sits on the web, the more valuable it becomes.

A website’s history within Google, the value of the domain name, and the man-hours involved in an existing turnkey increases the price. Our existing websites have been built live from day one, this means the site has been sitting in Google and has been indexed and spidered daily.

WHAT IS DROP SHIPPING?

Drop Shipping is the art of offering more products for sale on your website than you have in stock—for example multiple colors of the same handbag—and shipping them directly from the supplier’s warehouse.

This retail technique is becoming an integral part of many growing online businesses. It helps solve the problems of ordering inventory in advance and transporting those goods to your customer. Instead, you just have the wholesaler ship the item with a customized label and invoice. The beauty is, your customer probably won’t know (or even care) how it got there.

HOW DOES THE DROP SHIP SALES PROCESS WORK?

  1. You get an order
  2. You send the order information to the vendor/manufacturer/designer
  3. They ship the product out directly to the customer
  4. The vendor then charges your card on file – which you should already have your money from the paying customer
  5. You keep the profit!

Benefits of Drop Shipping
The main benefit of Drop Shipping is eliminating the worry of having inventory. When you work with a supplier, you don’t need a large amount of capital to get your online store running. Wholesalers have large amounts of inventory and a wide variety of products on hand. This allows sellers to offer customers a greater range of products. Not having to worry about supply as you create the demand can go a long way. It also reduces the stress of starting your own online shop, not to mention the fuss of packaging and shipping. Wholesalers will take care of that for you, shipping your orders directly to your customers. With these two big checks in the pro column, we can jump directly to the flexibility factor. You don’t even need a physical location. You can run your business from the beach, or the shopping mall, or anywhere with a reliable Internet connection.

Disadvantages of Drop Shipping
Drop Shipping is not a well-kept secret. With its great benefits, many online retailers have already taken advantage of this tool. This in turn creates competition in the market. It will be hard to distinguish yourself from other online shops that are also offering a wide variety of products. And with competition comes the other downside, which is a loss of profit. Your profit margins will definitely take a hit while competing with your rivals.

It can also be challenging not to physically see the products you are selling. You may also lose the ability to quality control items before they are shipped to your customer, creating the opportunity for errors that are ultimately out of your hands, but your problem in the eyes of your customer.

How to Choose Your Wholesalers and Suppliers
When reviewing the pros and cons of Drop Shipping, it’s like any other venture, benefits mixed with problems. It’s not a foolproof way to start a business, but it can be very useful to help you get started. Finding great wholesalers that you can trust is critical. The wholesaler is the backbone of your Drop Shipping business, so do your research. Luckily, Drop Shipping is not a new or untested idea. Many major retailers, brick-and-mortar as well as online stores, include Drop Shipping in their business models.

Tips For Choosing the Right Drop Shipper
Using wholesalers for Drop Shipping is on the rise, so there’s plenty of them available. But you should do your due diligence.

  • Thoroughly research your wholesaler before committing. Not only is this logical, it’s also a smart business practice. Since you are still working via the web, there will be a lot of unreliable options that immediately crop up. Take your time and delve deeper into different selections.
  • Ask the right questions:
    • How fast is the shipping and fulfillment?
    • Is there a minimum order?
    • Do you get discounts for bundling orders?
    • Can you get additional price cuts for selling high volumes in the future?
    • What is their return policy?
    • How efficient is their customer service?
    • Do they cover lost or stolen items?
    • Do you need a resellers license to get an account?
    • Is a Tax ID needed?

     

  • Find Multiple Suppliers.  You’ll need more than one on hand in case of sold out or back-ordered products. Using key terms that pertain to the products you are selling will help in your search of the right supplier.
  • Be Your Own Consumer. Once you find the right suppliers, order a few products yourself. First-hand knowledge of your product helps in selling it to your customer.
  • Customer Service. A good way to distinguish yourself from your competition is by having great customer service. You may not be the one fulfilling the order, but you can be the one to offer your customers help when their needs arise. Great customer service goes a long way in pulling you out from the pack.