Drop Ship: Increase Sales Without Spending a Dime

Have you ever considered the benefits of a more comprehensive product line?  

At the very least you can depend on improved metrics for your site, such as pages viewed per visit, average visit length and reduced bounce rates.  The most important benefit however, would be the increase in sales.

Unfortunately it would certainly require not only an outlay of cash but most likely additional warehouse space and more complex logistics.  That is, of course, unless you find a reputable supplier who drop ships as well.

Drop shipping is a supply model which allows you to sell a manufacturer’s or wholesaler’s inventory without having to purchase it yourself in advance.  

The Drop Ship Process: Quick Overview

Basically, the drop shipper provides you with competitive, almost wholesale prices as well as the specifications and images for their products.

You in turn add some or all of these products to your on line store as you would do with your normal inventory.

Only when a customer places an order on your site would you then place the order with the drop shipper.

The drop shipper would then ship the products directly to your customers, usually with your return address on the packaging.  The difference between your selling price and the drop shipper’s price is your margin.

Chief Benefits of Drop Shipping Include:

  • No upfront inventory risks.
  • No need for a warehouse.
  • No shipping or packaging required.
  • No cash needed to get started.

Drop shipping allows you to increase your product offerings for no up-front costs…well, other than the time to set the system up.

Sequence of Steps drop ship

It’s also a great, time-tested method to get your on-line store started on a shoestring budget.  Or you can simply use drop shipping as a test platform for product lines you are thinking of carrying.

Of course, as with everything else, drop shipping has its limitations, including:

  • Product pricing is slightly over wholesale, to cover drop shipping costs.
  • No control over shipping times.
  • No control over packaging.
  • Occasional issues with inaccurate inventory levels.
  • Difficult to discern product quality unless you purchase samples.
  • No control over quality of product images.

Drop shipping is perhaps not the best long-term business model, but it is hard to beat for start-ups or inventory expansion.

Once you determine your best sellers, the optimal strategy is to purchase those products outright and save yourself the drop shipping fees.  Meanwhile, keep the occasional sellers under the drop shipper’s umbrella and enjoy the benefits of selling without pre-purchasing inventory.  If the drop shipping model works for you then continue searching for additional drop shippers as a way to increase your product lines while improving your ROI.

 

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  • December 19, 2016