Drop shipping is not a 'get-rich-quick' scheme. As with any business, it takes dedication and hard work to be successful. Whether you're just getting started in the retail business or are running an established business, a drop ship service offers several benefits, including the following:
- You can become a retailer without needing to invest large amounts of money.
- You can start a business with very little risk.
- You don't have to carry about inventory or pay for inventory upfront if the product doesn't sell, you never have to buy it.
- You don't have to buy packaging materials and shipping labels, nor will you need a shipping account.
- You can purchase products at wholesale pricing and set your own retail prices.
- Your supplier stores and manages inventory.
- Your supplier packs and ships products directly to your customers.
- You pay your supplier only after your customer pays you.
- You can test the market with little or no risk.
- You can focus more time and resources on dollar-productive activities, such as marketing, advertising, and product research, rather than on inventory management, packing, and shipping.
- You can meet the retailer qualifications of the various suppliers.
- You can learn different ordering processes for each supplier.
- You can negotiate pricing and fees with each supplier.
- No expensive photography equipment or highly paid professional photographer
- No need to create product images and descriptions.
- No Inventory
- No costly Warehouse Expenses (Taxes, Utilities, shelving, trucks, security, insurance, City & State Fees, OSHA & Safety Regulations, Building Codes & Fire Inspection Fees, etc….)
- No costly Office Expenses (Furniture, computers, bookkeepers, managers, I.T, phone systems, government mandated forms and weekly filings, etc….)
- No Warehouse Employee's Salaries & Benefits to Pay weekly no matter what your sales are
- No expensive sophisticated inventory & shipping computer systems to purchase & maintain
- No Dead or non-selling products that you can not get rid of
- No cash out of pocket for large inventory purchases
- No flaky or deadbeat suppliers if you use a reputable successful company with a long history.
- No need to pick orders.
- No need to package customer orders.
- No packaging expenses (boxes, packing tape, labels, computer shipping systems, computer & printer supplies, wages for shipping employees, etc…..) or time and travel trips to FedEx, UPS or USPS.
- With a drop ship provider, you boost profits in several ways, cut costs, increase sales, save time, and reduce risk, and you can do it all with less manpower.