The process of drop shipping is not a new concept. Savvy business men and women have used it in the past to sell merchandise through catalogues and teams of salespeople going door to door. With the advent of the internet, however, and personal auction sites like Amazon and eBay, this form of business is now reaching a much wider audience.
-What is dropshipping and why should I use it?-
Dropshipping is a sales technique where you, the seller, list a series of goods a manufacturer provides as items you have for sale. When you make a sale, you then place the order for the product with the manufacturer and keep the difference in cost from your price to the wholesale price. The manufacturer then fulfills the customer’s order and ships it to them.
This method is popular because it eliminates shipping and stocking costs while providing a much larger range of products for a seller to provide. As a dropshipper all you have to worry about is selling the product and placing the order with the wholesaler. For small businesses, it is a quick and low risk way to start making a profit.
Considering that you are the customer’s direct link to a manufacturer, there is less room for error when dropshipping.
Each item is also made to order and shipped directly to the customer from the wholesaler, reducing the risk of product damage from being passed between providers. For these reasons, some customers may be searching specifically for a dropshipper, which expands their relevance in the market and their population in the future.
-Why eBay and Amazon?-
While drop shipping can be used in many different ways on the internet, sites like Amazon and eBay make the process even easier. Each site allows users to create accounts and upload auctions for their own personal items. What this means for drop shipping is that you have access to a safe, world wide marketplace with an easy-to-use interface and a massive, pre-existing user base.
Amazon and eBay also offer advanced search options that help you find best selling products. This option can help you determine the price, availability and popularity of the products you wish to sell. In some instances a site like these may even offer help in advertising your products.
These sites can also help build your small businesses reputation. Since both use a form of user ratings, where customers rate your performance, a consistently good rating will help your business grow in popularity and increase your profits. While Dropshipping can be used as a means to make money, it can also be used as the beginning to a business that will later expand beyond the internet.
There are other venues that one might use to dropship, but part of the reason eBay and Amazon are as appealing as they are, is the way they combine numerous elements into one cohesive whole. You can purchase items on these sites to own or sell. You can sell your personal items, and manufacturer items with dropshipping. And you are provided with all of the researching tools to find how best to sell and purchase your products. With all of these advantages in individual sites, it provides the perfect gateway into the world of dropshipping.