Drop Shipping May Be the Right New Business for You.
Why is there so much excitement about drop shipping as a great new business venture? Is it right to dub it as one of the best ways to make money online? It’s a great way to sell product and yet not have to store all that inventory or hire all those employees. Even better when your customers use electronic payments or mobile payments to pay you. No more handling cash!
Related: Best Ways to Accept Payments From Your Customers.
What is Drop Shipping?
It is an order fulfillment model. It involves order placement by a customer from an online store, which then requires the original manufacturer to fulfill the order for you. For example, if you are an online business, you do not need to invest in a warehouse or own inventory. All you need to do is connect with a manufacturer to make the inventory available. The inventory will be displayed on your online store, from where an interested customer can place an order. Order fulfillment is the responsibility of the supplier or manufacturer. However, you will need to have a sophisticated order management system in order for your side of the transactions to run smoothly. If you’re looking to get into the back end of drop shipping, i.e be the inventory holders, you’ll be wanting scissor lifts from the likes of https://assisthire.com.au or similar crane hire companies.
In simple words, you are the middleman between the manufacturer and customer. When the customer makes the payment, you keep your profit and pay off the supplier for fulfilling the order.
Related: 4 Keys to Building a Successful eCommerce Business.
Is It a Good Business Model?
Well, today, drop shipping is viewed as a lucrative model for the following reasons:
Investment
In order to run this kind of business, you do not need to make a huge initial investment for a warehouse or inventory, unlike other business models. It is the manufacturer or supplier that directly ships the inventory to fulfill the order.
This reduces the initial investment to almost zero. This makes starting a drop shipping business so easy.
Marketing
Since your focus is not on procurement, you can spare maximum time for marketing and business promotion. Harness the potential of automated apps to automate the entire process of order fulfillment, so you can focus more on reaching out to a wider audience. With such a business model, you can expect to reap great monetary rewards, since the investment required is almost zero.
Expand your niche
Since you are not responsible for warehousing or stocking products on shelves, you can offer a variety of products. The scope of products in a drop shipping business is immense and you need not curtail yourself to selling one or two products.
You have the opportunity to tap into a variety of niches. When you do this, you expand your online business beyond one kind of customer base.
Related: Understand and Fight eCommerce Fraud.
Start Using Electronic Payments for your Online Business.
When selling online, you will need a way to accept online payments from your customers . For that you will need to know What Payment Options Do Consumers Want for eCommerce. Let Access Payment Systems help with our electronic payment solutions and merchant gateway. We provide a Virtual Terminal to make it easy for you to manage your merchant account. Let us help you with our FREE Merchant Account Analysis offer. We’ll analyze your merchant account rates and let you know how to Save!
So what are you waiting for?
Setting up an online business, that too, drop shipping, promises to bring you greater rewards. Come up with a plan of action, jump onto the Internet bandwagon, and put in all the hard work to reap dividends.
Contact Us for more information on Credit Card Processing, or eChecks and ACH Transactions. Or take us up on our FREE Merchant Account Analysis offer. We’ll analyze your merchant account rates and let you know how to Save! If you are ready, you may be able to Switch and Save!