Using a Dropshipments For Your Online Business
What is drop shipping?
Drop shipping is a business level relationship between a merchant and the distributor of the product. The merchant markets, closes the sale and collects the money from the customer. The merchant does not need to hold inventory of the product but forwards the sale to the drop shipper who then ships the item to the buyer.
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A great opportunity for smaller merchants.
The merchant does not have to purchase large quantities of inventory in turn tying up cash flow. Not carrying any inventory means that the merchant also doesn’t have to worry about rotating stock. Another great aspect of drop shipping is that once an item is purchased the drop ship partner is responsible for the shipment of the product. The merchant doesn’t have to worry about the overhead of the shipping portion of the sale.
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There are a few drawbacks of drop shipping.
You will have little or no control over the shipping and packaging of the merchandise. The fact that the merchant is not taking responsibility for the shipment makes the customer service on shipment an issue. Make sure you choose a drop shipper that has excellent customer support and an excellent history of quick shipping and quality products.
Small/Home Business Tips, General 2006-01-16 Home Business Tips
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