A new form of drop shipping is currently making a trend in itself – Online drop shipping. The seller posts a product online at its lowest price and visitors can bid onto it until the highest bidder gets the item. But, searching for the best and the most qualified seller may prove to be a hard task.
Drop shipping also has a few perks. One main advantage of drop shipping is that there are no upfront catalogue of merchandise to purchase and that there is assurance that there is financial transaction in every deal, meaning to say, there is sure money on drop shipping. We can say that there is the assurance of money in every transaction since the seller is actually paid once the purchase of the product is done. Payment is usually done in either credit card where there is minimal chance of any faulty transactions or scams. Plus, the expenses are reduced since the shipment is sent directly from the source to the buyer thus profit is extremely large in this kind of business.
As with any advantages, there are also disadvantages to this kind of business. One of which is the occurrence of a sold-out product in which the wholesaler does not have any more stock and the retailers would have to wait for a long period of time before the product becomes available. This usually poses a bad image to the company. This happens quite a lot when the wholesaler does not keep their inventory updated as well as their retailers. Communication between the retailers and wholesalers should be constant to avoid this type of problem.
Like any other business transactions both online and in person, scams do happen and when this happens, it normally disables the business and put doubt into trusted customers. Scam artists generally create their own website and promote the products wherein in reality they do not have. Instead, they deceive online buyers with their promotions. After the order is placed, these people would then act as the middlemen of the transactions between the real wholesaler and the retailer. They would charge prices of the transaction a bit higher but not too obvious for the retailer to notice that they have been scammed and thus, once the transaction is over. The retailer gets the low down and these middlemen get their money’s worth. Be careful, learn by checking out the sites and ask around if the website is indeed legitimate. Work with a site that has been known to be genuine with its financial transactions like Salehoo.