Every business has issues to deal with and obstacles to overcome to achieve a profitable status. Likewise every business decision has its advantages and disadvantages. What you must decide is whether or not the advantages outweigh the disadvantages.
In the drop ship wholesale business there are several key factors to consider. I will attempt to touch on what I believe to be the most pertinent factors.
First let us consider the supplier of your drop ship wholesale products. This would be by far the one most important factor to consider. You will need to do your due diligence in researching the suppliers that are available for your market.
CHOOSING A SUPPLIER
1) Reliability Does the supplier fulfill the agreed upon contract? Such as delivery times, method of shipment, packaging requirements.
2) Reputation Does the supplier have a good standing in the business community? Have they been in business long? Is there any positive feedback, such as customer reviews or testimonials?
3) Quality of Products Is the supplier known for having high quality brand name products?
4) Warranty What type of warranty does the supplier provide? Do they offer a refund?
5) Customer Service What type of customer service is offered? Telephone support, Live Chat, Email, Written correspondence. What are their hours of operation?
6) Methods of Payment What types of payment will the supplier accept? Check, Money Order, Credit Card, Money Wire, Line of Credit, Billable Account
7) Discounts Will the supplier offer special discounts for high volume orders or perhaps incentives for repeat customers?
After you have researched and found some reputable available suppliers you are ready to start reaping the benefits of your efforts. Now let us explore what these benefits are.
BENEFITS OF DROP SHIPPING
1) Low Start-up Costs You can start a business with a very minimum investment when your main focus is using a drop ship wholesale provider. The space required for your business is greatly reduced and can be located almost anywhere. You do not need the luxury of a store front property when your focus is drop shipping. You are not required to have extensive packaging materials or the necessary freight and transportation supplies and information, such as trucking bills of laden, UPS, FED-EX, and other similar accounts and materials.
Basically all that is required is a phone, a computer and perhaps an office space set aside in your home.
2) No Inventory You do not need to keep an inventory or stock on hand. Everything can be ordered as needed.
3) Diversity of Products Since you are not required to inventory a large warehouse full of different products you can very easily offer a wide range of items for your customers to choose from. And with diversity comes the quality and grade of the products you want to make available. Perhaps you want to offer several different kinds of each product so as to be able to make the price the vehicle that your customers use when deciding which item to select.
4) Delivery Method You can offer your customers different shipping options which you then include in the overall cost. Include choosing courier method and speed of delivery.
5) Staffing Because of the nature of a drop ship wholesale business you do not need a large employee base. You and perhaps a partner can easily attend to all the duties necessary. Also none of the employee related expenses, health and dental insurance, workers compensation and all the other normal fees that are required to be available for employees.
Well it’s easy to see that there are many benefits to using drop ship wholesale as the primary method of delivery in your business. I hope you have found this information helpful in choosing whether or not to utilize the drop ship method in your business.