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What Is Drop Shipping and Why Should You Care?

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Precisely what is drop shipping and how could it impact positively on the finances? You might like to give serious thought to this kind of marketing and ways to put it on the very heart of your own business and save yourself significant amounts of money and stress.

. What is drop shipping


What exactly is drop shipping?



Like several good ideas drop shipping is a straightforward concept. Once you make a sale you contact the supplier of this item and purchase it but get them to ship it right to your customer. You could have also heard this called arbitrage.



The advantages
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Tying up money in stock isn't a great idea, especially if you are a sole trader, perhaps working from home. Drop shipping eliminates this problem, what's more you make a sale before you need to buy.



Buying products in big amounts, storing them and distributing them will most likely mean that you are currently paying less per unit but when you consider the additional costs of storage, distribution, paying and handling up front, drop shipping offers quite a bit to commend it.



In case you are a lone entrepreneur personal time management is of vital importance and I would suggest that you should spend 90% of your time concentrating on marketing. You arenot and essentially, a manufacturer, wholesaler or distributor and so i maintain that you should give attention to generating sales and leave others to do the boring time intensive stuff.



If you have made a sale then you have a responsibility towards your customer, however if the product is faulty or unwanted then they will be returned to the supplier not you. You might be associated with a few phone calls or emails yet you may avoid handling the merchandise.



In short you are able to work on a sizable scale with no usual hassles associated with traditional retailing.



Precisely what is drop shipping to do with online auctions?



If we take the notion of keeping overheads to a minimum, working from home and at the same time increasing income a stage further then there is a way of combining online auctions and drop shipping.



The best known, and largest, online auction marketplace house on the planet is, needless to say, eBay. For that stay at home full time, or in your free time, entrepreneur eBay is great example of eliminating most of the difficulties associated with generating an income online. You don't need to create a website or generate potential prospects, eBay does all that for you personally allowing you able to hop on with the essential business of offering top class products available for sale.



Discovering the best way to identify which items sell best on eBay and where to find suppliers which will drop ship these to your clients has to be the main topic of another article however I'm sure that you could appreciate the huge possibility of this marketing strategy.



I trust that I have answered the question 'What is drop shipping' and I hope also that you can see why you should care if you have any interest in creating a second or perhaps full time income that is as uncomplicated as possible.

 

Posted Jan 17, 2014 at 6:46am

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