You would like to increase your income by selling other
peoples` products but you just don`t have the money to
stock inventory.
On the other hand, perhaps you have lots of your own
product and would like to increase your sales, but you
don`t have a lot of money for advertising.
The solution to both problems may lie in drop shipping.
1. Sell Products You Don`t Own
You would like to sell a variety of products but you don`t
have very much money. Don`t worry! Your customers will
supply you with the necessary capital. You don`t have to
stock inventory. You can drop ship orders.
For example, you receive a credit card order for a product
retailing for one hundred dollars plus five dollars shipping.
You now turn around and fax (or e-mail or phone) your order
to your dropship supplier. You pay the fifty dollar wholesale
product cost plus five dollars shipping using your own credit
card.
Your dropship supplier now ships the order to your customer.
With no investment in inventory, your gross profit equals
fifty dollars.
2. Sell Products You Do Own
Would you like more sales of your own products? Consider
drop shipping your products for other dealers.
As an example, you may have a product that sells for
one hundred dollars plus shipping. Every time you sell that
product yourself, you will have a sale of one hundred
dollars. However, how many one hundred dollar sales can you
make personally?
Now consider the situation where you offer your dealers
a wholesale price of fifty dollars. You could have hundreds
or thousands of persons selling for you.
It is true that each product sale now only brings you
only fifty dollars in sales. However, these are sales that
you wouldn`t otherwise have. What would it cost you to
obtain these sales through traditional advertising channels?
Would your advertising even bring you the desired results?
Keep in mind that with this drop shipping arrangement, you
pay only for results. When a dealer retails your product
for one hundred dollars, he is really receiving a fifty
dollar profit for selling your product; you could view it
as a sales commission. You receive only fifty dollars per
product sale but sell way more than without drop shipping.
You ship directly to the customer for your dealer.
So, whether you sell other peoples` products or your own,
drop shipping can increase your sales, preserve capital,
and maximize business profits.
