Can You Make Money Online With Drop Shipping and E- Commerce
Drop shipping, is a system whereby you promote the products of a particular manufacturer, take orders directly, and the manufacturer/source handles all the inventory and fulfilment functions for you.
You will make money, save money, and fatten your bottom line utilizing drop shipping. Here’s how…
By James Spurway
Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.
#What is Dropshipping?
When I would have to describe Drop shipping I would say I believe it is a virgin untapped storehouse of products for today’s internet marketer.
For those who have not heard about Drop shipping let me explain it in plain simple words. Drop shipping is a system where you promote Products from particular manufacturers and they take the order directly from you and will ship it to your customer.
Yes, the manufacturer/source will handle all the inventory and fulfilment functions for you. That is a great way to make money. You can make money, and save money with no inventory, no storage, no staff …
Drop shipping is a system where you promote Products from particular manufacturers and they take the order directly from you and will ship it to your customer.
In a nutshell, here is the drop-ship system:
==> Your website will generate and accept the order.
==> You will take the profit out of the sale price.
==> You pay the wholesale price to the drop shipper and he will arrange the order shipment
==> The source factory ships directly to your customer without their address.
If you think about this for a moment, you can agree it is a great arrangement and the benefits are clear.
* Substantially higher profits to you over what most regular affiliate programs allow.
* The ability to quickly set-up inexpensive, highly targeted, niche or mini-sites to test and promote diverse products.
* no staff cost and no inventory
Well, drop shipping has been around for quite some time now, and drop shipping has been responsible for quite a few very successful mail order dealer relationships in the past.
Many of the Top catalogue and other direct marketer use that system to increase profit for decades.
Have you ever ordered a high priced item from a mail-order catalogue and been told the product be shipped from the factory directly to your doorstep? Then you do have experienced drop shipping first hand.
What every marketer should know
Did you know that there are On-line directories that exist which reveal essential contact information for drop shippers of over 2,000,000 products and 4,000 brands?
Most legitimate drop ship sources will require that you have a state tax reseller number in order to approve you to sell their products and give you the wholesale pricing you are looking for. That is if you use the ones from any drop ship source which requires you to pay a fee in order to become a drop-ship dealer… or requires a membership.
Those are generally the ones who make their money selling “drop ship licenses”… and are, for the most part, scams.
Legitimate drop shippers and factory sources never charge you any fees other than the actual shipping costs of the products you sell.
Another good advice … Make sure every time you get a new manufacturer that you get a written agreement that you own the customer .
The factory or drop ship source should agree in writing not to solicit your customers in any way and form.
Understanding that this is a very important part of you. The customer list you build from scratch with Advertising is the most important asset for you. If the factory or drop shipper cannot agree on that or want to baulk on that, use another source who will agree.
If the factory or drop shipper cannot agree on that or want to baulk on that, use another source who will agree.
There is almost every conceivable type of product available from different drop shippers willing to ship goods in single units under your companies name.
You can choose any area you like … electronics, consumer products, agriculture & industrial products, office supplies and equipment, hobby gear, recreational /sporting goods, clothing, furniture, health & beauty etc. the list what is available from drop shippers is endless.
The product actual source is invisible to your consumer . The seller ( means you) is able to build a great database of customers that he /she owns and controls.( by agreement with the manufacturer. ) and has all the direct marketing advantages that accompany that arrangement… while eliminating the need for maintaining expensive inventory.
A Arrangement like this offers maximum flexibility and cost savings for the seller. If a product does not sell well online you can pull down the advertising (web page/ landing page or mini-site) instantly with very little cost.
Besides the actual time, it took to build and test the web marketing effort. It is inexpensive to maintain this Webpage/ landing page or mini-site but testing different ads and products is a must for every marketer.
As hosting and websites are not that expensive anymore you can simply leave the pages online and take whatever orders trickle through… while you move on to the testing and promotion of new drop ship products.
If you ask what does the manufacturer benefits from this relationship? Very simple he is gaining a legion of active marketers promoting his products where otherwise he would have to run expensive advertising cost.
So you can see it is a win situation for both of you. As a marketer you are looking for several key components in developing the drop-ship relationship with a source factory or distributor:
What should you be looking for
* High-Quality products don’t go for the cheap stuff
* Blanket Product Liability Insurance (if applicable)
* A clear guarantee and return policy ( be aware when selling electronics, )
* High Quality Marketing Materials … product images (gifs, jpegs, etc.), selling copy, other suitable web graphics, etc.
*Great shipping prices and best is free and fast delivery
In case you are a manufacturer thinking to expand distribution (or an inventor with a new product ) you will find being flexible and willing to drop ship in single units will give you a strong competitive edge while you carve out increased market share at little cost.
If you are an online marketer interested in offering high profit products to your niche market (your website visitors) without incurring high front-end development or inventory costs… then drop shipping is for you.
Internet marketers are uniquely positioned to take profitable advantage of the drop ship arrangement and should give this system a serious look.
Look around for products in your niche, it is a great way to promote them.
Drop shipping has grown and now there are more and more Vendors and Manufacturers available.