Pros and Cons of Dropshipping for Home Based Business

Pros and Cons of Dropshipping for Home Based Business
By Thomas Griffin
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Let's start with the basics of drop ship business.
Dropshipping is a kind of service offered by some
wholesalers who are looking to distribute the products more
efficiently. It is done in the following way: you launch a
website where buyers will be able to see the assortment of
goods you are planning to sell. Once an order comes to you,
you redirect it to the wholesaler along with the wholesale
cost of the product. The wholesaler then sends the product
right to the buyer, and so you get profit that is the
difference between wholesale and retail price of that
product.

Benefits

First and foremost, you don't have to make an initial
investment for a stock of goods praying that they get sold.
No, you are going to work solely on orders. An order makes a
sale, and there can't be such problems as old stock.

Going further, your overall expenses are just tiny if
compared to those in some other kind of business. You don't
have to arrange a storage space for goods, pay for shipping
goods, etc.

Being relieved from such tasks as buying and placing stock,
packaging and shipping goods, and so on, you get lots of
free time to spend on other endeavors, and even on the
development of your drop ship business.

The fact that you don't have to bother about storing and
shipping goods allows you to choose from a wider range of
products. For instance, you have no restrictions as for
selling large goods, and can even offer to choose patio
furniture.

Pitfalls

Most often, you are going to buy single items at wholesale
prices. Should your buyers order multiple items, you may not
expect further discounts for purchasing more goods. One more
downside to drop ship business is that you'll be paying a
drop ship fee to the supplier. These may be fees for
inconvenient shipping location, or some other kind of fees,
that serve to cover some additional overheads sustained by
the supplier.

You can expect that from time to time you'll be facing some
problems concerning delivery. For instance, there can be
delays on the part of the drop ship supplier that can have
negative impact on your business. If you happen to change
the wholesaler, try to test them before taking orders from
buyers. Thus you'll get an idea of the services provided by
the supplier and the time it takes for them to handle your
orders.

All in all, it can be said that drop shipping is a pretty
convenient way of selling goods under certain conditions:
you are careful, you manage to determine a profitable market
niche, you manage to find a reliable supplier, you apply
certain marketing efforts to promote your business.

Thomas Griffen is the CEO of Urbanload. Do you want to make
easy money on eBay? Over 2000 resellers can't be wrong.
Urbanload offers you the best eBay drop ship business
opportunity. Visit Urbanload.com to start your own dropship web site
with our reseller program.

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