Wednesday, December 19, 2007

Making Money with Drop Shipping

If you are looking for a start up internet business that you can afford and you are low on capital to fund your new venture, you may be the perfect candidate for drop shipping.

For those of you not familiar with drop shipping, it is really quite simple, in concept at least. The basics are this. You choose to sell items on your online store. You list the products for sale on your web site or online store. Then, when someone makes a purchase from your store, you simply forward the information to the drop shipping company, and they ship it to your customer on your behalf.

The choices of what to sell are almost endless. Whether you choose to sell sexy lingerie, motorcycle parts, or wedding favors is entirely up to you.

The advantages of this are that you don't have to carry any inventory. No inventory means no inventory carrying costs. In other words, you don't have to invest in a bunch of stuff that you may or may not sell. This also allows you to list a large amount of products on your site as the drop shipper is the company who has to carry all of the inventory.

The disadvantages of this are that you are completely reliant upon the drop ship company to fulfill your orders. This is the worst part of the arrangement. Unless you have a very reliable drop shipper that keeps all inventory in stock at all times, you will end up in some annoying situations that can cost you time, money and ultimately lost customers.

If I had to recommend to you you the most important thing of all when it comes to starting a drop shipping business, I would say without a doubt that choosing the best drop shipper is of crucial importance. If you do this, you will avoid endless hassles with the drop shipper as well as your customers. This will enhance your business by providing timely shipments and communications with your customers and help bring back repeat buyers.

Mess with your customers and watch them disappear in a flash. It is very hard to get a new customer but it is very easy to lose them. Not only that, but time is valuable and messing around with back ordered products is a waste of your precious time.

Use Online Shopping Coupons to lower your costs of online purchases.