A drop shipment is done when the supplier directly ships to the buyer. This means that in a drop shipment transaction, the retailer or distributor no longer has to worry about waiting for the item and then has to go through the hassle of sending it to the buyer. A drop shipment is the best way to make the lives of retailers easier. This also means they no longer have to add more fees for the shipping cost.
Dropship From China
A dropship from China is usually only advisable if the supplier is in the same country or area where the buyer is. However, if the buyer is in another country say Thailand and the supplier will be sending it from China, the buyer would have to pay for the taxes of the item getting into the country. A dropship from China using Focalprice, on the other hand, allows you to ship items directly to the buyers’ door without needing to manage inventory yourself!
Drop shipping or a drop shipment works best for retailers who do not have much time to go from their homes to the nearest post office. Apart from being convenient, a drop shipment also ensures the buyer that the product comes straight from the supplier or the warehouse itself. If the buyer and the supplier are in the same area or country, the costs will be lesser too instead of buying the item from a department store.
For those who have online businesses, choosing a drop shipper is one of the most crucial processes involved in the said business. Drop shipments are a popular option for retailers not only because it is convenient but also expands the number of products they offer. For retailers who do not have much space for inventory, it reduces their need for space.
What Is A Drop Shipment?
A drop shipment as defined in the first part of this article is the process where a retailer does the marketing of the product, gets paid for the item and then orders the said product from a wholesaler for it to be shipped directly to the particular customer who bought a particular product.
Let’s say Leslie Winkle has an online shop that sells lingerie. Ms. Winkle then advertises the lingerie items she has on her website. A buyer, we shall call Mary then order the product from Ms. Winkle and then pays for it. Once Ms. Winkle sees that a payment has been made, she will order the lingerie from her wholesaler or supplier and includes Mary’s address. Ms. Winkle has to pay for the item too but at a lower price and then once that is done, the wholesaler or the supplier then sends the lingerie to Mary. This is how a drop shipment works.
Many would ask how much Ms. Winkle would be making from such a drop shipment transaction. Well this is fairly easy to answer because in the case of Ms. Winkle, her profit would be the difference between how much she sold the lingerie to Mary and the money she spent on the wholesaler. In this scenario, no inventory is held by Ms. Winkle and she is not involved in the shipping of the item as well. Although a lingerie does not take up so much space, it is still a wonderful idea for those who do not want to bother themselves with the shipping process. However, a drop shipment is ideal for retailers who sell over-sized or heavy items. This can include furniture, home appliances or industry equipment.
Drop shipments are also great for start up shops that do not have the cash flow to stock their inventory. This means that they only get items that have already been paid by the buyer before they purchase anything.
Doing a drop shipment transaction may seem like the perfect scenario for retailers but the retailer must beware of companies that do not drop ship even if they say they do. There are many scammers out there and often, it’s these scammers that stop us from starting a small online business. That’s why Focalprice has spent so much time working on their customer service and infrastructure to handle customers, big and small.
The first thing one should do is to check the list of wholesalers and vendors in your area. If you have a favorite shop, might as well ask them if they drop ship. It doesn’t hurt to ask. Another thing a retailer should take into consideration is what product to sell. Choose a product that will be bought or is needed by a lot of people so that you will make money by buying in bulk and not by mark-ups. A dropship from China using Focalprice is a great way to serve your customers and yourself.
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