Drop Shipping: Letting Mom and Pop Stores Compete Against Big Chains

Drop Shipping: Letting Mom and Pop Stores Compete Against Big Chains

It is no secret that larger chain stores are beginning to lose favor with the American public and that online shopping is, by and large, replacing the brick and mortar atmosphere. With an ever increasing number of chain stores declaring bankruptcy, being forced to raise prices, and closing many branch and franchise doors around the country, doors are opening for small businesses who wish to compete in the retail sector.
A new home based business or an existing small business can choose to operate solely online and can achieve an equal or even greater profit than if they open a traditional shop presence. The overhead is exponentially reduced: no buildings must be purchased or leased; no insurance or utilities must be paid; fewer, or in some cases no, employees are required; and for companies who choose to use drop shipping to fill customer orders, no inventory must be kept on hand.
Drop shipping is an excellent choice for businesses that are attempting to retool or businesses that are just starting out. By having items delivered directly to the customer from the wholesaler, businesses can profit in one of two ways. Most obviously, businesses that use the drop shipping method realize a greater profit margin. Because they do not have the hassle of inventory, packaging, or shipping, their upfront costs are much smaller than those companies that must always keep items on hand. The other way businesses can benefit from drop shipping is by lowering their prices; passing the savings on to their customers. Though businesses will not immediately see as great of a profit from each individual item, they are likely to do more business with more customers if their prices are low. Furthermore, sellers who can compete pricewise with other companies are likely to woo away even the most devoted patrons.
One necessity to successfully implementing a drop shipping plan for an online store is having a well designed web site. The web site must attract visitors by being easily located through online advertisements and/or through search engine results. Once an Internet shopper has discovered the web site, they must be able to easily find the items they seek and be able to learn as much about both the products and the company as they can. The web site should be professionally designed and should contain images, product specifications, concise price listings, and estimated ship times. Customers must be able to place orders online, which requires a secure method for accepting payments. Customer must also be able to contact individuals within the company, either by email or by telephone (preferably both), in order to ask any questions they may have.
As long as you are able to set up a professional web site and can locate a good wholesaler, you are well on your way to competing with the big chain stores.

Source by Jane Worthington

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