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Article

Advantages Of Drop Shipping




© AffiliateSeeking - This article is not allowed to be re-published but can be linked to.

There are many advantages to drop shipping so it's one distribution method you might want to consider when you decide to put up your own retail business. Drop shipping is a delivery method used by retailers where all the sold items are delivered straight to the end-users by the wholesaler.

Drop shipping has many advantages for the retailer. This method is ideal for home-based businesses because it eliminates the need for storage and inventory management. One of the main advantages of drop shipping is it lowers start-up costs. Whereas traditionally running a retail business would require you to maintain stocks of various items, with this business model, you only need to provide your client a catalog or a website so they can browse through the available items in your "store". Your cash outlay is greatly reduced and because your money is not tied to your inventory, you can plough back your resources to developing your services.

Aside from the money saved on inventory, you also save money from packaging materials and you also save up on warehousing and other overhead costs. A lot of the stress associated with distribution is also eliminated as someone will do all the dirty work of shipping for you. You don't have to worry about customs duties, the paper work and the other hassles related to delivery.

You also don't have to worry about being left with unsold items and keeping an updated inventory. Aside from the lower cash outlay, drop shipping allows you to carry more merchandise from different wholesalers or drop shippers. You can have a virtual shopping mall with different items from different brands. You can change, delete or add items anytime you want. Traditional stores that are open from 8 - 12 hours usually require more than one sales personnel. With an on-line store utilizing drop shipping, you can run the business all by yourself. You don't need dedicated people to sell the products a good website with attractive propositions is enough. What's even better you don't need to employ delivery and warehouse personnel.

Because you don't have to worry about managing inventory, you can focus on marketing and developing your website for your customers. You can use your time and resources into cooking up promos and other marketing schemes for your visitors, link building and even building a healthy relationship with your suppliers.

To make sure you maintain the highest level of customer satisfaction when implementing drop shipping in your retailing business, make sure you only deal with reputable drop shipping companies. Make sure you do your homework and research on the different companies, if they are able to fulfill their delivery commitments, if they have an attractive pricing scheme that will give you good profits and check if they have reliable customer service support and are easy to deal with. Remember that although it is the wholesaler who will ship the items for you, clients are not aware of this fact and any inefficiencies or bad service will reflect poorly on your company.



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