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Why Drop Shipping Companies Offer So Many Advantages

May 24, 2008
Drop shipping is when you conduct an online business selling various products, without actually having any physical stock. You simply forward your orders to your drop shipping company who then ships the product to your customers.

There are many benefits in this arrangement, as given below.The biggest benefit in this arrangement is that you do not have to maintain any inventory at all. This frees you from the headache of searching for a warehouse, buying inventory, hiring staff, taking care of the logistics, and worrying about theft from your warehouse.

All the above would have raised your cost tremendously as well as given you sleepless nights worrying about dead stock. Another benefit is that your shipper upon getting your order, ships the product directly to your customer. He might also be willing to stick your company logo on the product, and will also forward your invoice along with the product.

This will indicate to your customer that it is you who has dispatched the product. If your shipper ships the products on time, it will enhance your reputation. Drop shipping companies might also give you some credit on your purchases from them. So, this means that you will get instant payment from your customer and you can pay your drop shipper after some days.

This will help you to take care of urgent expenses and improve your cash flow. Efficient drop shipping companies can send you their updated stock and price lists along with photos on a regular basis so that you too can stay up-do-date with the changing market and adjust your selling price accordingly.

You could also have common software installed so that your stock position is updated simultaneously along with their position. This can lead to an increase in sales, since most of the electronic items being sold follow a downward trend in prices at regular intervals.

Your drop shipper should also be able to offer you a special price on products, which he has purchased in bulk. That price can be passed on to your customers.

This will result not only in increased sales, but also enhances your reputation, as customers will perceive you to be someone who can give products at bargain basement prices. Your drop shipping company should also be ready to take back unwanted products from customers and also offer guarantee or warranty on his products.

This will eliminate your headache of goods being returned and also enhance your name as an honest e-business house. The drawback in drop shipping is that your profit margins will be low, but it is justified, since you will also have to invest a very small amount to start your business.

This makes it all the more important to tie up with an honest and efficient drop shipping house, since his actions will determine your reputation. If he truly remains behind the scenes and does what he is supposed to do, then he can ensure that your future will be bright in this business.

So, if your research has been precise, you can tie up with the proper drop shipper whose prompt services and low prices can benefit your company and raise it to greater heights, click by click.
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