What is Dropshipping and Why Should You Use It?
Dropshipping is not a new concept. Professional businesses, men and women have used it in the past to sell merchandise through catalogues and crews of sales people going door to door. With the arrival of the internet, however, and personal auction sites like Amazon and eBay, this business is now approaching to a much wider audience. Before you go on to understand Amazon to eBay listing, let's understand what dropshipping is and how does it work!
Dropshipping is a method of gaining sales where the seller lists a series of products a manufacturer provides as items for sale. When you get a sale, place your order for product with the manufacturer and make sure to keep a little difference in cost from your real price to the wholesale price. The manufacturer then accomplishes the customer's order and ships it to the customer.
This method is popular since it eliminates shipping and stocking costs while offering a comparatively broader range of products for a seller to list. As a dropshipper retailer, all you need to worry about is selling the product and placing the order with the wholesaler. For small businesses, it is a fast and low risk process to start making a profit.
Since you are the customer's direct link to approaching a manufacturer, there is little room for errors when dropshipping.
Each item is designed to order and ship directly to the customer from the wholesaler, thus eliminating the risk of product damage from being passed hand in hand between providers. For these reasons, some customers may be searching particularly for a dropshipper, which expands their relevance in the market and helps make them a lot of profit in return.