Start a drop shipping business today!!!
By the way, what is drop shipping?
What are the features of drop shipping business?
How do you start a drop shipping business, find wholesalers who are ready to drop ship for you?
Are there any benefits or advantages that you can derive from the business?
In the absence of a website, can you use a Facebook business or fan page to sell your mini importation products and use any of the drop shipping wholesalers or companies to drop ship on your behalf when customers order from you?
These and other related issues are addressed in explicit detail in “The Importers Bible”.
Drop shipping is “a supply chain management technique or Marketing business model that allows a retailer to accept orders from the end users or customers on behalf of the manufacturer or wholesaler”.
Thereafter, the drop shipper or retailer passes the customer’s order and shipping details to the manufacturer or wholesaler who subsequently handles everything related to shipping of the goods directly to the customer.
Rather than keep a large volume of inventory, the drop shipper or retailer simply partner with a drop shipping supplier and list their products or goods for sale.
Thereafter, when an order is received by the retailer, he or she subsequently forwards it to the supplier for delivery. The supplier will ship the product directly from their warehouse to the customer, and charge only for the price of the shipped item.
Practical Example: Let us assume that you are operating a drop shipping business with Jumia. A customer, who I will refer to as Mr James, is interested in buying a particular model of Tecno phone.
He orders from you as the middleman and make payment. You order from Jumia, make payment and give the “shipping details” (which may be a house or office address) of Mr James to them.
Jumia supplies the Tecno phone to Mr James without you laying your fingers on or even seeing the phone.
You are happy that you have made a sale. Mr James is happy that he has purchased a mobile phone without leaving his house. Jumia is happy that they too have made a sale.
That, in a nutshell, is drop shipping.
From the foregoing, you can see that drop shipping is the easiest way to sell online for any newbie on a shoestring budget.
Features of Drop Shipping
The features of drop shipping are as follows:
1. As the retailer (that is you) does not keep inventory or goods in stock, there is no need for warehouse or even office space.
2. When retailer receives orders, he/she transfers both customer orders and shipment details to either the manufacturer or wholesaler.
3. The customer orders a product and makes payment to the retailer. The retailer orders from the manufacturer or wholesaler and makes payment for the order and passes on the shipping details of the customer to the manufacturer or wholesaler.
4. Manufacturer or wholesaler is responsible for shipping of the goods directly to the customer.
5. There is no direct communication between the manufacturer or wholesaler and the end-user or customer.
6. There is no costs incurred with respect to repackaging, relabelling, etc.
7. Since the retailer is not responsible for shipping of the goods to the customer, the process is entirely out of his or her hands and may experience some unpleasantness when goods become unduly delayed and the customer becomes uneasy and anxious.
8. Profit of the retailers is usually the difference between the wholesale and retail price.
Advantages or Benefits of Drop Shipping
The advantages or benefits of drop shipping are as follows:
1. You Do Not Need A Trailer Load Of Money To Get Started: Drop shipping makes it amazingly easy to get started selling various products online. You don’t need to invest heavily in inventory, yet you can still offer thousands of items to your customers. You only purchase a product when you have an existing order to fill.
2. No Need for a Warehouse to Keep Stock of Goods or Inventory: Since you do not keep inventory or stock of goods upfront in anticipation of sales, no cost is incurred on rent and maintenance of a warehouse.
3. Wider Product Selection: When you do not have to pre-purchase all the items you sell, you can offer a significantly larger number of products to your customers.
4. Increase In Efficiency: There is no doubt that a lot of work is involved in successfully operating an ecommerce business. With the absence of stress with respect to the fulfillment of customers’ orders on the part of the retailer, he or she can concentrate his or her energies into other vital areas such as marketing and customer service. In addition, a retailer can operate his or her business from anywhere across the globe – thus increasing efficiency and effectiveness.
5. Drop shipping also eliminates some duplication of effort, since only one warehouse will pick, pack and ship the product. This approach can reduce total inventory management and shipping costs. These cost reductions can subsequently reduce the price to the consumer.
The above is an excerpt from this new wonderful e-book on the online mini importation business in Nigeria or Ghana or Kenya or any other part of Africa.