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What is Drop Shipping?

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What is Drop Shipping?
Drop shipping is a product delivery method in which the seller accepts payment for an order, and the customer receives the product directly from the manufacturer.
Drop shipping involves the shipping and mailing of goods and products, it is also a method of retailing that has gained popularity with the development of online shopping.
Drop shipping is rather beneficial to smaller retail shops and internet-only storefronts. A representative item may be demonstrated on the store's shelves or pictured in its catalog, but the actual product purchased may be sitting in a factory's warehouse 3000 miles away.
The evident advantages of drop shipping are:
- No inventory
- No shipping
- You buy wholesale and sell retail
- Distributor supplies product information and new products
However, there may occur some problems. One of the biggest problems is inventory control. Products are usually ordered in bulk from the manufacturer and must be stored in a secure area until displayed. With drop shipping, the retailer does not keep a large inventory on the premises. More space can be devoted to displays, and fewer employees need to be hired to handle shipping, receiving, inventory and security.
When drop shipping is available, many small retailers and internet-only stores discover it solves many more problems than it creates. Shipping is left up to professionals, there is virtually no inventory to track and more retail space is available. Smaller shops can offer exotic or over sized products without worrying about importation costs or expensive storage. Manufacturers also benefit from reduced shipping costs and more sales exposure of their products.
Things to consider when selecting a distributor for drop shipping:
Watch out for companies that aren't legitimate wholesalers.
Be wary of monthly fees.
Online shopping is highly competitive. Optimally, products should be in demand, but not widely available online — what are called niche markets.
Be sure the drop shipper uses a method of shipping, such as FedEx or UPS, that can be tracked.

Drop shipping is not a 'get-rich-quick' scheme. As with any business, it takes dedication and hard work to be successful. However, there are distinct benefits to using drop shipping in your online retail business:
You can become a retailer without needing to invest large amounts of money.
You can start a business with very little risk.
You don't have to carry inventory or pay for inventory upfront—if the product doesn't sell, you never have to buy it.
You don't have to buy packaging materials and shipping labels, nor will you need a shipping account.
You purchase products at wholesale pricing and set your own retail prices.

Contact Person Samantha
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