Drop shipping is the latest version of retailing where the products ordered by the customer through the retailer are delivered to the customer by the manufacturer themselves. It is been marketed as the most risk free and cost effective method of retailing. There is no denial to the fact that the methods of drop shipping are risk free and cost effective but that definitely does not mean that drop shipping is an easy way of business. The retailer is devoid of all risks with regards to storage and shipping, but there are risks attached to it. Ever wondered what would happen if the customer places an order and the manufacturer cannot fulfill the same? This happens when the products displayed in the retailers catalogue run out of stock but the same is not communicated to the retailer by the manufacturer. The customer would be let down by the non delivery and might take an action against the retailer thus affecting the retailer and his business in a negative manner.
The success of a business depends on a lot of factors. It starts right from the vision to the product delivery. Clarity is the most important factor that should be present in every business. If the entrepreneur is clear on the vision of business then the plan ahead is a smooth road. First the goods/products to be sold should be decided by the entrepreneur. This definitely is not an easy task. A good amount of research should be done in choosing the right product. Proper analysis will help in deciding the products in demand and then the products with maximum demand should be zeroed in for showcasing. But before the product is included in the catalogue you have to find out about the availability of the product with the dropship suppliers .
Finding the best drop shippers is a very important factor in succeeding in the business world. The most important factor is, getting the product from the dropshipper at a quite good margin so that you can mark-up the price and sell at a nice profit online. All the above things should go hand-in-hand in deciding the success of the business. How do you decide on the margin- this would definitely pose another major question. The margin earned will definitely differ from product to product according to the demand in the market.
Dropshipping has enabled the mushroom growth of several online sites of e commerce. This growth is an indication of the positive aspects of the feature of drop shipping. With the cost of living touching unprecedented heights , the need for a parallel stream of income is on a high. The internet as a medium also comes up with business opportunities that allows the people to work on flexible timings
And fulfill orders of customers. But we should be careful of such chances offered and ensure that the right choice is taken . If fraudulent details are given and we fall for the same there is no use blaming the drop shipping companies as making the right choice is ultimately in our hand.