Drop shipping method in E-Commerce is a very good method if you have the potential to make bulk sales. If the item is saleable on a regular basis then you must use drop shipping method. Drop shipping will lessen your burden of keeping stocked material. You save money and time too.Have you used this method for your online business.

Can you explain more about it? I'm interested in using it but don't know how to start out or what to look for.

hi anthony

i am jenny . your concept appears to be very interesting .However a more detailed explanation of what the concept of drop shopping is all about will create better awareness.

so anthony pls enlighten me on what is the whole idea about.

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JENNY

What Is Drop Shipping?

Drop shipping is a by-product of modern day business. It has become very popular gradually and now lots of firms, both on and off line, employ this method.

Introduction To Drop Shipping

Drop shipping, also known as drop shipment, is a type of retailing process. In this process the retailer does not keep the goods in stock. On the contrary, the order and shipment details of the customer are passed on to the wholesaler. The wholesaler then directly sends the goods to the customer. What constitutes profit for the retailer is the difference between the wholesale price and retail price.

Drop shipping can happen at the time when a retailer or online business owner, who in general sells products in small quantities, receives a big order for a product, or several small orders over time. Instead of directing the shipment(s) to a retail store or other storage facility, the retailer or e-commerce internet business owner then makes arrangements for the goods to be shipped directly from the drop shipper to the buyer. For selling purposes, some retailers and small business owners only offer a catalog or have an Internet presence (website).

Features Of Drop Shipping

If you are new to the drop shipping process, you should know that drop shipping is a system through which you can promote any manufacturer’s product. You take orders directly from your customers. Then, either the manufacturer or the product source takes care of all the inventory and fulfillment work for you.

The complete process of drop shipping includes:

1. Your business accepts the order.
2. Your business takes the profit out of the sale price.
3. Your business forwards the order and the wholesale price to the drop shipper.
4. The drop shipper sends the ordered product directly to the customer.

There is one other version of drop shipping that involves using private consignment carriers to ship a large of volume of products directly from the manufacturer to any postal facility near to the place where the end recipients are located. Though it may seem contradictory to drop the items at the postal service near the manufacturer, this is actually done with the intention of saving on postal costs and saving time.

Authenticity Of Drop Shipping Companies

Drop shipping companies do not always offer wholesale prices. To figure out whether the drop shipper you are using is legitimate or not, you should pay careful attention to the two points below:

1. Are the product prices already displayed to the public? Genuine wholesale prices are not disclosed publicly.

2. Is there any membership fee required? If the wholesale drop shipper is authentic, you will never be required to pay a membership fee. If you do have to pay a membership fee, a legitimate drop shipping company will refund the full amount of the membership cost after a specific number of inventory purchases are made.

To learn more about drop shipping

Fulfillment Houses

An alternative solution to drop shipping is using a fulfillment house. It is a little more work to set up, but higher ROI. With a fulfillment house you can buy in bulk (manufacturer or wholesaler), send the products to a fulfillment house, then they ship out for you. It is the same concept of drop shipping, but this way you get the best purchase price and are in FULL control of your inventory & distributions.

Check out the image I have attached, it shows a nice visual of how it works. Here are some resources you will need.

1) Find a manufacturer:
a) www.alibaba.com
b) www.GlobalSources.com
2) Find a wholesaler:
a) Wholesale411.com
b) WholesaleCentral.com
3) Fulfillment Houses:
a) www.efulfillmentservice.com – small biz
b) www.webgistix.com – large

*** There are 1000’s, just search online

All you need to do is contact the fulfillment house and they will act as your personal warehouse and ship to your customers. I recommend going with ‘efulfillmentservices.com.’ I talked to them over the phone and they were very nice.

Please visit us for more information on fulfillment houses

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Internet Business Ideas - WebBizIdeas.com

This e-fulfillment thing does sound interesting, but there is obviously more risk than drop-shipping as you have to buy in bulk.

But definitely as your business expands it is something to consider.

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