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Drop-ship or U-ship: That is the Question
For small Internet retailers, drop-shipping is one of the best
innovations since sliced bread. How else can a start-up offer a
wide variety of products and convince customers that they have a
fully-stocked warehouse-while investing virtually nothing in
inventory or warehousing? Before you jump right onto the
drop-shipping bandwagon, however, there are some pitfalls to
avoid.
While a quality drop-shipper is truly a dream come true for
the Internet retailer, there are plenty of painful pitfalls to
avoid. Things can get embarrassing and costly in a hurry when a
drop-shipper:
? sends products out late
? forgets to process your orders
? sends out poorly packaged products
? double-bills your credit card for orders on a regular basis
? provides cheaply made products and/or shoddy workmanship.
A Matter of Credibility
In addition to the above drawbacks, many customers are not
very impressed when they find out you retail drop-shipped
products. This is especially the case with the rustic log
furniture I sell on the web. Many phone customers ask if we make
the products ourselves, or are "merely" drop-shipping.
They are relieved and impressed when they find that we
manufacturer, finish or pack most of the log furniture we sell at
our warehouse. We sell to a lot of people with expensive vacation
homes, and quality is of utmost importance. It's always easier to
testify to the quality of furniture when you have seen it
yourself, and we are able to offer a more unique line by going to
Amish suppliers whose products aren't sold elsewhere on the
Internet.
Advantages of Drop-Shipping
With this said, there are still some sizeable advantages to
drop-shipping. As the volume of our orders grows, it becomes more
and more difficult to package all of that furniture. Fortunately
for us, our largest supplier is only two miles away and we have a
pretty good deal going: we finish all the log furniture they want
finished, and they drop-ship the unfinished furniture. So they
make it, we finish it.
That means if somebody orders unfinished furniture, it can go
directly from the factory. This might have made me nervous about
quality control at one point, but I have developed a high degree
of confidence in our log furniture manufacturer. In the five
years I have been associated with them, they have never let me
down. They fill orders with a high degree of quality and
accuracy, which makes our job easy.
Choosing a Drop-Ship Partner
Unfortunately, not all drop-shipping companies are as reliable
as the one I have found. This is why it pays to do your homework
before choosing a drop-shipping company. If you align yourself
with fly-by-night operations, your business will most likely
suffer as a result. If you are wildly successful, which you no
doubt hope to be, a small start-up may not be able to
manufacturer or ship product fast enough to meet your needs. A
drop-shipper that is unstable as a business may be happy to take
your cash but fail to fill orders on a timely basis.
Any business who drop-ships your orders will affect your
reputation as a company one way or another. As a result, it's
important to make sure any drop-shipping companies you partner
with meet the high level of customer service and quality control
standards you set for your business.
Copyright 2005 Log Cabin Rustics
Cari Haus is webmaster for http://www.logcabinrustics.com,
an online retailer of quality log furniture.
 MORE RESOURCES updated Thu. February / 09 / 2012
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Elizabeth Taylor auctions raise $183 millionThe Doane LineChristie's auction house says all of the 1817 lots offered sold at auctions in New York and London, some at 50 times their pre-sale estimates. The top lot was Vincent van Gogh's landscape "Vue de l'asile et de la Chapelle de Remy," which once hung in ...and more » |
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Elizabeth Taylor auctions raise $183 millionAZFamilyChristie's auction house says all of the 1817 lots offered sold at auctions in New York and London, some at 50 times their pre-sale estimates. The top lot was Vincent van Gogh's landscape "Vue de l'asile et de la Chapelle de Remy," which once hung in ...and more » |
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Mark Zuckerberg, the 100 billion-dollar manThe AgePrivate capital markets group SharesPost sadly rejected Insider's application to participate in auctions of stocks such as Facebook and Zynga on the flimsy grounds that our net worth is less than $1 million. It still, however, taunts Insider with what ... |
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Elizabeth Taylor auctions raise $183 millionabc13.comChristie's auction house says all of the 1817 lots offered sold at auctions in New York and London, some at 50 times their pre-sale estimates. The top lot was Vincent van Gogh's landscape "Vue de l'asile et de la Chapelle de Remy," which once hung in ...and more » |
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Mark Zuckerberg, the 100 billion-dollar manSydney Morning HeraldPrivate capital markets group SharesPost sadly rejected Insider's application to participate in auctions of stocks such as Facebook and Zynga on the flimsy grounds that our net worth is less than $1 million. It still, however, taunts Insider with what ... |
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