How to Start Drop Shipping

dropshippingThe Ins & Outs of Drop Shipping

Product distribution is a vital concern for most businesses. You want to get the right product to your customers as soon as possible. Drop shipping is a great method for achieving that goal. This is nothing more than allowing a product handling company to distribute the products for you. It is especially helpful if you are a little short on the capital. Less capital could translate into fewer products in your inventory. In either case, drop shipping has the potential of enhancing your line of products. Many businesses refer to this as the “endless aisle.”

Relieve the Stress of Product Handling

If you choose drop shipping, you are relieved of the product handling burden. All you need to do is process those orders, submit them, and relax. You get to pocket the variance between what it cost you and what you’re selling it for. The possibilities are alluring. But there are some factors you should take into consideration.

Know Your Drop Shipping Company

You need to form a bond of trust with your drop shipping company. After all, you will never physically come in contact with the products. Make certain you are extremely familiar with the company and the products they will be shipping to your customers. You need to feel comfortable that they will correctly fill every order you submit. The products must be packaged properly and shipped to the customer as promised.

As you can see, although you are not handling the products, some stress may still exist. You can relieve that by making sure you have a good relationship and understanding with your drop shipping company.

Know the Stock Levels

It is important that you stay on top of your stock levels. The stock is not in your warehouse where you can physically count it. You must communicate with your drop shipping company to ensure the products you need are on hand. You don’t want to take orders for goods that are not in the inventory. This is especially the case if you secure this service through eBay.

Unless you have a superb software system, do not deal with more than a few product providers. The idea is to reduce your stress, not enhance it. You don’t want the nightmare of tracking stock levels with multiple companies. Keep in mind that every company does not share the same return policy. Don’t take on too many providers and create a mess you don’t need. Drop shipping can be a great asset to your business as long as you take these factors into consideration.

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