How to Be a Successful Drop Shipper

Online shopping is not a new word to most of us. In general, higher levels of income, education, and occupation correspond to more favorable perceptions of online shopping

Drop Shipping

Drop Shipping

Increased exposure to technology also increases the probability of developing favorable attitudes towards new shopping channels.

Drop ship is such a new shopping channel, and also a new way for some students or housewives to make money on spare times.

What is drop ship?

If we search drop ship on Google or WIKIPEDIA, they will tell us:

Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer. As in retail businesses, the majority of retailers make their profit on the difference between the wholesale and retail price but some retailers earn an agreed percentage of the sales in commission, paid by the wholesaler to the retailer.

How to do drop shipping?

But we are all still wondering, after all, how to do drop shipping in real life?

Ok, let’s take TRAIT-TECH team as an example:

Drop ship has no additional charges. Just order online in the same way as usual, and put a new shipping address when you checkout the order.

When place the order, please put “drop shipping to customer” in the shipping comments. If you are a new drop shipping customer they may need to email or phone you to verify before processing the order

They do not include TRAIT-TECH publicity materials / invoices etc when we send drop ship goods, so it protects your reputation as a seller.

If your customer has technical support issues, or wants to return a product, they will have to discuss this with you first because it’s your account with Trait-Tech.

Please notice: they ship goods only according to your paypal address! Please make sure that your delivery address is the same of your paypal address before finishing the payment. If not, please revise your paypal address first.

Advantages

There are two significant benefits of drop shipping:

1. The elimination of upfront inventory

2. A positive cash-flow cycle.

Potential Risks

Like any business, some potential risks are also existed in drop shipping. For instance, back orders may occur when a seller places a shipment request with a wholesaler, but the product is sold out. Back ordering may be accompanied by a long wait for a shipment while the wholesaler waits for new products, which may reflect badly on the retailer.

Conclusion:

We can make such a conclusion, a good wholesaler should keep retailers updated, but it is the business owner’s job to be aware of the quantities that the wholesaler has available.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: