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Drop shipping has now become one of the most lucrative sources of
online business. Individuals pursuing drop shipping, act as
retailers for merchandise of one or more wholesale companies and
try to sell the merchandise to retail customers. Just type any
product you can think of into a search engine and look at how many
pages of websites come up - most of them are indeed retailers
making living online selling wares using drop shipping!
Why Drop Shipping is Lucrative
Drop shipping has suddenly caught everyone’s fancy because it is
simply the most efficient way to retail over the Web. This is how
drop shipping normally works:
● A prospective buyer surfs the Web for a product and make a
purchase.
● The website owner (retailer) passes that order to his drop
shipper or wholesaler.
● The wholesaler processes the order, ships the product to the
buyer with the name of the retailer on the package. Buyer thinks
the website owner has sold and shipped the product to him.
Here the profit margins are phenomenal for the retailer. This is
because the retailer himself purchased the product at wholesale
rates and then sold it to the customer at the best possible price
he could offer. But
there are some more advantages to this. Drop shipping requires
zero overheads as there are no rentals, labors or salaries to pay
for. There is no inventory to maintain as all products are stored,
managed and shipped by the wholesaler, in fact, this is more
lucrative than even a Wal-Mart model. You see, Wal-Mart also
follows the same principles of buying wholesale and selling at
retail prices, but It has to take in the inventory and lots of
operating costs, which is why you make a better profit per sale
than Wal-Mart does.
Drop Shipping’s Secrets
Veteran online retailers
don’t even bother wasting time and effort on promoting and
operating their own e-commerce website, which are too time
consuming and troublesome. It’s almost like reinventing the wheel.
Instead they use eBay, where they post their products at retail rates,
offering ‘discounts’ or other freebies to attract buyers. eBay
gets millions of clicks and retailers don’t have to worry about
maintenance, shopping carts etc. All of this is taken care of by
eBay. It’s no wonder
that people make entire careers from drop shipping and eBay. Maybe
you should also give it a shot, who knows, you could be on your
way to online success and riches!
About the author:
Lewis Low is founding editor of OnlineBizPromo. For more practical
online business ideas and work-from-home opportunities, visit
http://www.onlinebizpromo.com. |
