Drop Shipping is basically a direct sales method in which the seller doesn't keep goods in stock or store inventory, but instead the seller accepts the customer's purchase orders and shipment details.
Then the seller forwards the details of the sale to either the manufacturer or a wholesaler, who then ships the goods directly to the customer.
Similar to other types of retail business, the seller makes his or her profit on the difference between the wholesale and retail price.
Fortunately for us, the advent of the internet along with tremendous improvements to material transportation and merchandise shipment systems have made the process of earning income by drop shipping goods much easier to facilitate, even a newbie can do it.
Yet, even with the advantage of technology on our side, drop shipping is still not a foolproof, 100% guaranteed method of creating large streams of income.
I don't want to discourage anyone from this possible opportunity to work for themselves and make money but I recommend you look at all the angles before you decide to venture into the drop shipping arena.
You should always do your research; find out both the pros and the cons of this form of direct selling.
There are many pros and cons to drop shipping that you may want to learn more about but here are few to consider as you begin your research process.
Pros: You don't need to store goods, which also frees you from the concern of maintaining inventory.
The manufacturer or wholesaler (distributor) ships the purchased item and allows you to maintain positive cash flow.
You pay the wholesaler or manufacturer only after the order and payment has been received from the customer.
You earn money by keeping the difference between what you charge the customer and what you paid the distributor for the product.
Cons: You don't have control over the shipping process.
If the distributor runs out of the product you have to wait for the back-order or even worse you may be forced to refund the sale until the product is available again.
Like all business opportunities only you can decide if the opportunity presented to you is your ticket to success.
Drop shipping has its ups and downs but with the proper research and business plan it could be it could prove to be a very lucrative way to earn income and start your new career.
Then the seller forwards the details of the sale to either the manufacturer or a wholesaler, who then ships the goods directly to the customer.
Similar to other types of retail business, the seller makes his or her profit on the difference between the wholesale and retail price.
Fortunately for us, the advent of the internet along with tremendous improvements to material transportation and merchandise shipment systems have made the process of earning income by drop shipping goods much easier to facilitate, even a newbie can do it.
Yet, even with the advantage of technology on our side, drop shipping is still not a foolproof, 100% guaranteed method of creating large streams of income.
I don't want to discourage anyone from this possible opportunity to work for themselves and make money but I recommend you look at all the angles before you decide to venture into the drop shipping arena.
You should always do your research; find out both the pros and the cons of this form of direct selling.
There are many pros and cons to drop shipping that you may want to learn more about but here are few to consider as you begin your research process.
Pros: You don't need to store goods, which also frees you from the concern of maintaining inventory.
The manufacturer or wholesaler (distributor) ships the purchased item and allows you to maintain positive cash flow.
You pay the wholesaler or manufacturer only after the order and payment has been received from the customer.
You earn money by keeping the difference between what you charge the customer and what you paid the distributor for the product.
Cons: You don't have control over the shipping process.
If the distributor runs out of the product you have to wait for the back-order or even worse you may be forced to refund the sale until the product is available again.
Like all business opportunities only you can decide if the opportunity presented to you is your ticket to success.
Drop shipping has its ups and downs but with the proper research and business plan it could be it could prove to be a very lucrative way to earn income and start your new career.
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