Wednesday February 8th 2012

Dropshipping ~ How it Works

So how does this dropshipping/ order fulfilment idea work?

After doing your own research and choosing your supplier, obviously checking for feedback on them, communicating with them. asking relevant questions and finally maybe ordering some items and having them delivered to friends as a test, it really is quite simple. Your supplier will give you log in details so that you can place orders with them. This is where the hard work begins.

You need a platform to sell your items from, many people start with ebay, its certainly a good marketing tool and will help you to promote your website if you decide to go down that route. But we’ll come back to that under another topic.

The process is relatively simple in the way it operates.

~You advertise and market the products
~Your product sells
~You take payment for the product
~You then place the order with your supplier providing your customers address details
~Your supplier sends the product to your customer
~You pocket the difference between your sale price and your purchase price.

Some suppliers will enhance their service by allowing you to provide business cards and fliers that can be sent with your package promoting your site for the future.
The package should arrive with your customer in unmarked packaging and your customer should be unaware of the fact it was delivered direct by a third party.

Many trusted and reliable suppliers will price their good so that you can make a reasonable profit per item. The really good ones will give you all the information you require to make your business succeeed. Many offer direct product feeds enabling you to keep up to date with the stock levels and prices at the click of a button.

Now this may all seem like easy money ~ but be prepared !!

It is not a case of build a site fill it full of products and watch the £10 notes float into your bank account.

There is alot of work involved, but you have at least taken a large chunk of work ie, picking, packing and posting your items, and placed those responsibilities firmly in the hands of your chosen ‘dropshipper’ . This is why i would urge that you research fully your chosen suppliers. Place test orders, check prices, compare the service you get between them.

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