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What YOU Must Know About The Advantages And Pitfalls Of
Dropshipping
The following may be the most important information about
dropshipping you will find.
Dropshipping can be a great way to get started with your
online venture. Just be careful to make sure that you know the
quality of the product your supplier offers, what their shipping
policies are, and their reliability.
Your reputation is on the line with your customers, not the
dropshippers reputation. You must be able to stand behind your
product and service no matter what the source.
Make sure to order at least one of each of the items you would
sell via the dropshipper. This gives you several things:
- It will show you the quality of the products. This is very
important. You don't want to offer a product and have your
customer receive something that is low quality or obviously not
worth the money.
- It will show you what the packaging is like. How well is the
product protected during the shipping process? Is it likely to
break or arrive damaged due to inferior shipping or
packaging?
- You can see first hand who they shipped through and how long
it took for the item(s) to arrive.
There are many advantages to drop shipping.
1. When you are first starting out, capital may be an issue.
With dropshipping you can get around that by selling the product
first, collecting the money from your customer, buying from the
dropshipper, and keeping the profit. Although your profit may not
be as high as it would if you had purchased the products in bulk
beforehand, it is still a profit that can get you started.
2. Another advantage is you don't have to have products stored
around your house.
3. You don't have to worry about being stuck with inventory
that you cannot sell. If a product doesn't sell, you can simply
drop it from your offering and go on to other more sell-able
products.
4. You can find and sell more items since you don't have the
limitations of on-hand inventory.
If you are considering dropshipping to get yourself started
you must also consider the *potential pitfalls*:
1. You will get a price break from a dropshipper, but it is
often not as low as you could get from other avenues. Be careful
to make sure that you have a product that is quality and the
price point for you is one that will ensure a profit for you when
sold. This is especially important if you will be selling via
auctions. Auctions tend to sell new products for 25-30% below
retail. If your price is not good enough, you could loose money
on an auction.
2. Make sure that the dropshipper gives you a good shipping
and handling fee. They have lots of shipping and get a very good
price on it themselves. If shipping and handling is high,
something is wrong.
3. Don't pay a 'fee' to do business with anyone. You are
giving them business by buying product from them. If they want
more money for your having the privilege of doing business with
them, you know this is not a company that you want to even
consider.
4. Find out how the dropshipper handles problems. If you have
a customer return, how will they handle it. What kind of support
will they give you.
5. Get references for the dropshipper. How long have they been
in business and what is their financial standing? Check the
Better Business Bureau. Google their company name to see if there
are any complaints or problems you might need to know about
before making the decision to do business with them.
If you are ready to make the dropshipping model your own, jump
right in. Take these points into consideration, but don't let
anything stop you. Be as informed as you can though, continue to
learn and find out all you can about those you do business
with.
The road to success is not always a smooth one. Can you avoid
more of the pot holes, it makes the ride much more enjoyable?
Copyright (c) 2005, Melanie Burns -- All Rights Reserved
Worldwide
Melanie Burns has passion and dedication to assisting You to
make Your Internet Business a Success! Join the weekly "Abundant
Success Online" newsletter,
mailto:aso-subscribe@internet-business-how-to.com
(Permission to reprint this article in its entirety including
byline, is expressing granted.)
 MORE RESOURCES updated Thu. February / 09 / 2012
The Drinks Business |
Spectrum auction “redefines” London sceneThe Drinks BusinessThe inaugural Spectrum wine auction in the UK was hailed as “redefining” London's auction scene after last night's sale. It was standing room only at the ballroom of the Mandarin Oriental as bidders competed for lots of Domaine de la Romanée-Conto La ... |
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College show a dress-up affairVictoria Times ColonistIt includes food, music, games, prizes and auctions. Casino Royale has a James Bond theme, so guests are encouraged to wear tuxedos and gowns. The decor of this year's fundraiser will bring to mind Montenegro, one of the settings of the 2006 Casino ... |
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Kickbacks row: AP proceeds to review excise policyZee News"The current system of auction (of liquor shops) is flawed. It needs to be revised...we are on the job," Mopidevi told newsmen here today. A team of senior Excise Department officials visited Tamil Nadu recently to study the excise policy in vogue ...and more » |
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Hart, S - Superfast BroadbandDeHavilland (press release) (subscription)In reply, Mr Hart asked about what could be done to help those left out of the plans. Responding, Mr Hunt said that Ofcom's announcement for 4G spectrum auctions would mean that 97 per cent of the country would be reached, but more should continue to ...and more » |
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Muckdogs planning for Hot Stove eventThe Daily News OnlineBATAVIA — The Genesee County Baseball Club will conduct its annual Batavia Muckdogs Hot Stove dinner and auction on Friday, March 2, 2012, from 5:30 to 8:30 pm at Terry Hills Golf Course and Banquet Facilities at 5122 Clinton St. Rd. Tickets are $25 ... |
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After kickbacks row, AP to review excise policyZee News"The next round of auctions is due in June. So we should have a new policy in place before that," the Minister added. "Syndicates are neither new nor restricted to liquor trade alone. Syndicates exist in sand and other businesses as well," Mopidevi ...and more » |
Parda Phash |
Pay more for your favorite beverage!Parda PhashSo the prices of this variety of tea are expected to go up at auctions. It will push up CTC tea retail prices in the domestic market," Arun N. Singh, managing director and chief executive of tea major Goodricke Group, told reporters over phone.and more » |
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