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WHO SHOULD DROP SHIP
Post 1 of 3
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If you own a retail store and have an Internet web site, you should drop ship. Obviously you will be selling everything carried in your store also over the Internet. But to enhance your Internet site, you should leverage the relationships you have built within your store's existing vendor base and have them also drop ship for you. This also is a way for you to develop relationships with additional vendors to drop ship for you while leveraging the cash flow (collect now pay later). The hidden value in drop shipping from your Internet site, is that drop shipping gives you valuable insight into what products are selling well.  Drop shipping also can help you explore products you aren't currently carrying in your physical retail location which may sell well for you on the internet; giving you the opportunity to buy and add products that you now have a track record of selling without having to guess which products will sell best for you and your store.
 
If you own a retail store and have a large order, you should drop ship. Normally smaller retailers will sell in small quantities to the public. Once in awhile a large organization or a customer throwing a huge party needs a big quantity of one or a few items. These goods should be drop shipped directly from the resource to the customer.
 
If you are an entrepreneur with limited space and funds, you should drop ship. The Internet is the last real venue for guerilla marketing, where an idea can begin to be marketed and advertised without having to break the bank. Finding the kinds of products that will complement your idea where you don't have to inventory or finance will give you a larger portion of your funds to spend in marketing.
 
If you have an Internet site that you are currently selling products that you do stock, you should drop ship. Great businesses are based on specialized or niche products that have limited supply. If you are selling these products and are already attracting traffic to your site, you should sell related products that others can drop ship for you. The synergies of having like products all in one place are as they say in the ads "priceless".
 
15 Sep 2008 18:16
Post 2 of 3

I think that the definition of the term 'drop shipping' is being confused here.

If you have the item in stock or otherwise in your presence then you would be delivering that item to your customers NOT drop shipping.

If you do not have the item in stock or in your presence but you sell it first and then have your supplier deliver that item direct to your customer then that is what is called drop shipping.

You could theoretically drop ship any quantity of product but considering that most retail customers only buy one or a handful of the same item at any one time, drop shipping often involves the delivery of one piece or so per item.

Drop shipping is a good method of sale and delivery under the right circumstances. In my opinion the right circumstances would be a supplier that acts as a wholesaler or distributor holding stock in hand in your own country.

But if anyone is hoping to be able to buy direct from the manufacturer in Asia at manufacturers prices and have that supplier deliver per piece products to their customers on their behalf then I think you will find that very few if any manufacturers of the product would be interested.

15 Sep 2008 18:50
Post 3 of 3

The above aticle is merley exploring the idea for retailers with brick and mortar locations to supplement their income through dropshipping; not their inventory in the store; additional non warehoused items supplied thourouhg his or her current suppliers and available only online.  Through the web and dropshipping the retailer is able to carry an unlimited amount of products without warehousing any of the inventory; this gives them an unlimited, untapped revenue stream which marketed correctly can result in revenues exceding the phisical retail location.

Giving these local small business retailers an additional tool like dropshipping to add additional revenue is key to competing with the large corporations trying to force them out of business.  Utilizing your relationships with your current vendors who know you, your business, and your reputation best gives you an opportunity to retail additional products which may not make scence in the local retail store, however online sales are through the roof.

 

Quoting from [Egernia]:

I think that the definition of the term 'drop shipping' is being confused here.

If you have the item in stock or otherwise in your presence then you would be delivering that item to your customers NOT drop shipping.

If you do not have the item in stock or in your presence but you sell it first and then have your supplier deliver that item direct to your customer then that is what is called drop shipping.

You could theoretically drop ship any quantity of product but considering that most retail customers only buy one or a handful of the same item at any one time, drop shipping often involves the delivery of one piece or so per item.

Drop shipping is a good method of sale and delivery under the right circumstances. In my opinion the right circumstances would be a supplier that acts as a wholesaler or distributor holding stock in hand in your own country.

But if anyone is hoping to be able to buy direct from the manufacturer in Asia at manufacturers prices and have that supplier deliver per piece products to their customers on their behalf then I think you will find that very few if any manufacturers of the product would be interested.


20 Sep 2008 16:55
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