Drop Ship Information

What is Drop Shipping and What Can it do for Me?

Drop shipping gives small businesses the ability to offer a much larger range of products than they normally would be able to keep on hand. The supplier stocks the products and ships them directly to your customer when needed. Since you only purchase products once a customer has purchased them from your business you are able to free yourself from the costs associated with the warehousing and shipping of goods. Freeing up this capital allows you to grow your business at a faster rate than with more traditional methods of product fulfillment.

What are the Benefits of Drop Shipping?

  • Only pay for products when the product has already been purchased from you
  • No need to worry about shipping products.
  • Do not need to maintain any warehouse space.
  • Majority of customer service issues are managed by the drop shipper.

Where can I sell these products?

Anywhere that products would normally be sold. Although if you are planning on selling products that you have on hand without the need for shipping, wholesaling would be a better solution. Drop shipped products are typically sold in the following manner:

  • On auction sites such as eBay
  • Through your own webstore
  • On classified sites such as Craigslist
  • At fleamarkets or similar outlets.
  • Through catalogs and flyers.
  • In retail stores where space is limited or to simply increase their offerings
  • To yourself, family or friends. This is a great way to save money on purchases and gifts.

What Issues should I be Aware of?

  • There are companies that pose as drop shippers but in reality are purchasing goods from a true dropship vendor and taking a slice of the profit. These are often referred to as "Middlemen". These companies hurt the industry and offer no real value.
  • Stock issues may arise if you are conducting business with a low volume drop shipper.
  • Drop shipped products are normally not priced as low as wholesale products, but the benefits listed above help offset the price difference.