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Drop Shipping Increases Profits
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.
RESOURCE BOX:
J. Stephen Pope, President of Pope Consulting Inc., has been
helping clients to earn maximum business profits for over
twenty-five years.
For valuable Work at Home Small Business Ideas, visit
http://www.yenommarketinginc.com/
For additional information about drop shipping, visit
http://www.yenommarketinginc.com/dropship.html
 MORE RESOURCES updated Sat. July / 31 / 2010
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