Drop Shipping Rocks - 5 Strategic Ways to Apply the Services of

  • If you have researched drop shipping on the internet and read about how people regard using it on eBay or any online retail store, you will have surely noticed that people have varied and sometimes completely opposite views. While you may find some people saying that drop shipping is the safest and easiest way to make money in online retail, you will also see that some have a strong stand in stating that it sucks and will never work on eBay. In my opinion, both views are correct. Drop shipping rocks and sucks at the same time. Let me justify myself here. Drop shippers make selling retail products online effortless and risk-free. Practically, you don't buy a product until you've sold it. Even after that, you don't have to worry about shipping the product to your customer. It's all taken care of. You don't lay a hand on the merchandise. At first glance, it looks like the perfect system to make thousands of dollars without leaving the comfort of your chair. Unfortunately, drop shipping alone cannot make you that kind of money. If you pursue drop shipping as the ultimate way of earning a living then in short time you will realise that it sucks. What you have to understand as an eBay seller or an online store owner is that drop shipping is a means to an end and NOT the end in itself. It is a strategic way of minimizing your risks in retail selling and not the ultimate money-making system. As soon as you realize this fact and start using the service of drop shippers the smart and strategic way, you will find that drop shipping really does rock!

    Let me show you some of the ways you can strategically use drop shippers and make better profits in online retail:

    1. Start Selling With a Very Low Capital

    In normal circumstances, if you want to sell ONE product in retail you would need to buy it from a wholesaler in bulk and store your bulk supplies in a warehouse. For that you need a considerably large amount of money in capital to buy in bulk and then pay the rent for a warehouse. Many people don't have that kind of money to spend making it next to impossible to enter the retail market. Drop shipping solves this problem. By working with a reliable drop shipper you can start making profits without the need of a large capital.

    2. Getting Familiar with the Wholesale-Retail World

    If you are beginner and you have never experienced how the wholesale and retail market works, then you will realize that there is a significant learning curve you have to get over before you feel comfortable selling online. Sometimes there's nothing more valuable than first hand experience to make you successful and that cannot be more true with online retail. You have to experience it to know it. Drop shipping gives beginners the opportunity to jump into online retail and gain first hand knowledge without the insecurity or fear of losing money. Once you feel comfortable, you can invest some money and take planned risks.

    3. To Test the Market Potential of a New Product

    It's not only beginners that can benefit from drop shipping. Even experts with big buying power use drop shippers for their own use. For instance, if a retailer has a well established online store selling niche products successfully and wants to add products that will compliment his range, he will list drop shipped products in his store just to test their market potential before buying in bulk. If he sees that a product is selling well, he will source it in bulk wholesale and gain higher profits, as well as adding a new range of products in his store.

    4. The Ability to Sell Unlimited Amount of Products

    An online retailer doesn't have to buy bulk loads of different products just to list them in his store and show that he sells a variety of products. Sometimes he may only source his best-selling products in wholesale but still show an extensive range of drop ship products to customers. Some niche stores look good and sell better when customers see that the store offers variety, even though only a few products may be big sellers.

    5. The Ability to List Expensive Branded Products

    Branded products are relatively expensive to source, but the drop shipping model let's you do that also. Buying a $100 product in bulk will cost MUCH more than buying a $10 product in bulk. Of course if you use drop shipping you have the ability to sell ANY product not matter how expensive it is, since you don't have to buy it until you sell it to a customer. The benefit of selling expensive products is that you get a larger profit in terms of cash, if not percentage. Let me explain. If you sold a $10 product for $20, which is a 100% profit margin, you are only making $10 profit. But if you sold a $300 product for $360, which is a small profit margin of only 20%, you make $60; SIX times more profit than your $20 product. In drop shipping, selling a high-priced item is the same thing as selling a low-priced item in terms of risk. Another thing is that customers see branded and expensive products as a positive identity for a store. They become an attraction or a kind of bait for the up-sell of other products.

    Find More: China Wholesale Drop Shipping