With the growing number of online retailers, it is best that a business should find ways in order to further increase their profit. One way is to adopt a dropshipper who will send ordered products to the retailer's customer without the retailer having to stock items and do the packaging and delivery.
In this case, you have more time to concentrate on selling and marketing the items which means that your focus will be on creating sales and not product delivery of sold items. Basically, the drop shipping concept works in simple steps. The first one would be for you, the retailer, to build a network with a wholesaler and a dropshipper, or a wholesaler who do dropshipping too. Next is to select the items to sell and advertise them. When you made a sale and have received payment, you will send the order with the payment to the wholesaler, importer, or manufacturer you work with. They will do the packaging and the delivery of the item sold.
The dropshipping company is not involved in the selling of the items. They are connected to wholesalers and retailers who do the selling and marketing. But the online buying and selling transaction ends with the dropshipper because it is responsible for packaging and delivery.
Most drop shippers can work for small to midsize retailers. Every dropshipping company provides unique services to make selling convenient to retailers. There are Web-based interfaces that allow the sellers to access list of items with pictures and descriptions and a button for them to post the products in their online store. The retailers need not purchase the item to be posted; purchase will be done after a shopper or customer buys the item from the retailer.
It is relatively affordable to start with drop shipping. Subscription or membership fees range from $30 to $100 depending on the service. But one has to be careful in building a network with a dropshipper or wholesaler. Because this is not a face-to-face transaction, fraud is a big problem in e-commerce. However, this can be avoided with proper research and good business background.
This technology appears to be very helpful in operating a business. Efficiency in cost and time is achieved just as long as get a reliable and responsible drop shipper.