Dropship Guide for Beginners

Book excerpt: Today's savvy e-commerce business owner knows how to compete. In years past a business, shopped for the products they wanted to resell. They then purchased the items and stored them while they searched for an end user or consumer. Once the product was sold, they shipped the item to their customer and hopefully made a profit. This method is costly. Besides the price of the item, the seller pays shipping from the manufacturer (or distributor) to his location. He then stores the item, taking up resources and space until he resells the merchandise. He invests time and effort into marketing the item and either he or the end user pays shipping (again) to their location. All of these steps have to be factored into the price of the item to the end user. The customer will decide if the end price of the item is a bargain and is competitive. As the shipper, if the item is lost or damaged in shipping the expense of filing tracking and claims falls on him as well. Drop Shipping is a proven way of reducing or eliminating many of these expenses, thus making the end price lower for the consumer and more profitable for the seller. With drop shipping, a seller or retailer does not purchase the item and store it for resell, but rather sells the merchandise and ships it directly from the manufacturer to the consumer. The seller does not have to store the item or pay shipping from the manufacture to his location. He does not have to handle the item himself. This reduces chance of loss or damage and speeds up the process considerably! He needs less start-up money (storage rental can be very costly and a product on hand that moves slower than anticipated can create a cash flow problem right out of the gate) and can invest more time and money on his sales. He also does not have to reship the item and there is only one shipping expense to absorb, lowering the price of the item and making it of more value and profit for all concerned. If there is loss or damage in shipping, it falls on the manufacturer (or distributor) to provide the documents and file any claims with the shipping company involved. Okay, so all of this sounds great, right? But how do you get started? This eBook will teach you how! So, let's get started!