Tuesday, November 13, 2012

Dropshipping: An Introduction

Dropshipping is selling a product that allows dropshipper (resellers) to sell products to customers just showing photos from supplier / store (without having to stock items) and sell to customers at a price determined by the dropshipper.

Once customers transfer money to the dropshipper account , Dropshipper pays to suppliers in accordance with the dropshipper purchase price (plus shipping cost to customer) as well as providing customer data (name, address, Phone number) to the supplier. Items ordered will be sent by the supplier to the customer / buyer. However, interestingly, the sender's name is still listed the name of the dropshipper. So, basically there are three components involved here, namely: dropshipper, suppliers, and buyers.

Dropshipping can be done by offering offline. However, in general, offers made online, by installing a supplier's product catalog. If we have an online store, we only need to put a picture of the product from the supplier to our online store. If we do not have a shop-online, we can still take advantage of online selling sites.

In general, there are 2 kinds of cooperation model between the dropshipper with the store / supplier.

First, the supplier gives the price to the dropshipper, then dropshipper can sell goods to consumers at a price set for himself, incorporating the advantages dropshipper.

Second, the price from the beginning has been set by the supplier, including wholesale dropshipper for fee for each item sold.
In addition to the fee benefit from a given supplier, there are many other things that a dropshipper benefits, including:

  • No need substantial capital investment.
  • No need of office and warehouse for supplies.
  • No need higher education (at least can ber-SMS/menggunakan internet / operate the math sum).
  • No need to do the packing and delivery of products.
  • Wherever you are, you can still sell.
  • Very easy to run by anyone.
  • Not bound by time. You can run this business with ease, like while sleeping, while keep the child, and school / college / office work, or doing other tasks.

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