Learn what is drop shipping and how does it work?
The drop shipping is a technique of logistics to resell products, in which you don’t keep the products in stock, the dealer presents a catalog or a web page with the products, with this when he makes the purchase order requests and pays his supplier.
So the supplier makes the whole process of packing and makes sending directly to the client. As well as the entire retail business, retailers achieve their profit on the difference between the wholesale and retail price.
If you have interest to work with drop Shipping, you won’t need much, just a computer and internet access.
With the drop shipping you will get some benefits, which first will be the elimination of an initial inventory and so will have a positive cash flow cycle.
The drop shipping can also eliminate several steps compared to a reseller “traditional”, in which only one warehouse and packing and shipping the product, is already a reduction in total cost of transport. These cost reductions will affect the price of the product, thus being able to reduce the price to the consumer. With this the two sides wins.
Of course, like any business, you’re going to have some risks working with drop shipping, check out:
- A big problem is with the time of delivery of the product, since the delay in delivery may occur for various reasons, such as: product without supplier’s inventory, transportation contingencies, if the product is imported, customs might be awaiting release, in these cases just taking enough.
- Imported products, the recipient will have to play the import taxes (federal and State), but it has products that can pass without being taxed, most who can pass without being taxed are products of less than 50 dollars.
- If the product arrives in poor condition it is you who will have to play the prejudice of the client, most of the time.
What Is Drop Shipping? And How Does It Work?
What Is Dropshipping | How Does Dropshipping Work
What Is Drop Shipping
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