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Wholesale Drop Shipping
What is wholesale drop shipping?
First of all, Wholesale drop shipping should be explained. It's basically a middleman operation, because it eliminates the function of housing and distributing any inventory. In drop shipping, an e-commerce Web site retails products that its wholesaler sells. Once a consumer places an order on the e-commerce Web site, the order information is relayed from the e-commerce Web site to the wholesaler. Then, the wholesaler packages the ordered goods and ships them directly to the consumer, who placed the order. The wholesaler will even attach the E-commerce Web site's packing slip and label to the package being sent. This is the process that is called drop shipping.
Disadvantages of wholesale drop shipping
Now that we have broken down drop shipping, let's examine the major cons. Although drop shipping allows e-commerce Web sites to open up and function without inventory, it can be a challenging task. When I say challenging, I'm referring to both listing the wholesaler products on the E-commerce site and keeping up with product updates. It's a tremendous job to list all of the products for sale. Once you are finished with the initial listing process, you must make a methodical effort to periodically check for product discontinuances, product information updates, and price changes; all of which are provided by the wholesale drop shipper. This is perhaps the most important and time consuming chore, when it comes to e-commerce. Another major point is that e-commerce Web sites that use drop shipping are in direct competition of other e-commerce sites that are selling the same exact products. In order for a whole sale drop shipper to sell their products, they must get as many e-commerce Web sites to carry their products as possible. There are ways to prevail amongst the thick number of competitors though.
Advantages of wholesale drop shipping
Moreover, we explore the pros of an e-commerce operation that uses drop shipping. Of course, the obvious advantage is the fact that it takes much less money to start an e-commerce Web site, if drop shipping is implemented. This sure beats the obvious fact that an e-commerce Web site operation would need to buy the inventory, store it, and then sell it. It is recommended that e-commerce beginners test their ability to sell merchandise with a drop shipping setup. Once the e-commerce beginner becomes advanced, he or she may choose to move on to purchasing, storing, and distributing their own merchandise. Be advised, there are no freebies. What I mean by no freebies is that you get back what you put in. Drumming up sales is hard work that is very time consuming. If you are looking at a drop shipping operation as a sideline income, then that's what you will get. However, if you are attempting to create a full-time, primary income source out of it, then be prepared to work 40 to 60 hours each week. Of course, this kind of tireless effort won't go on forever. It usually takes between 2 and 3 years of heavy Web site promotion for an e-commerce site to takeoff. This promotion effort is achieved through well implemented marketing plans. Learn more about internet business planning.
Overall, a wholesale drop shipping operation can be very lucrative. Remember the pros and capitalize on their advantages. In addition, remember the cons and counter their disadvantages in your operations and promotions strategy.
Article Source: http://EzineArticles.com/2141515
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