Drop shipping is the process in which the 미국배송대행 buyer places an order to the retailer but the product is delivered to him directly by the manufacturer. Basically, the retailer is the middleman working as an agent to promote the products of the manufacturer and sell them. The retail price is set by the retailed and the difference between the retail price and the wholesale price is the profit kept by the retailer on each sale. There are various ways through which retailers can promote the products such as by using websites, monthly magazines, etc. but they are not responsible for creating an inventory for the product. The inventory is maintained by the manufacturer and the transportation of goods is done from his end.
Types of Businesses that enjoy Drop Shipping:
This industry is most lucrative for small businesses, online businesses and catalog based businesses. When customers visit outlets these business outlets, they are not delivered with the product there and then. Usually, customers are required to provide their contact information and address to the retailer for the products to be shipped to their house directly by the manufacturer. Therefore, the major advantage of drop shipping for any type of business is of being free from the expenses of maintaining an inventory or stock of the products.
Benefits for the manufacturers:
Drop shipping is quite beneficial for manufacturers. Retailers are usually the ones who are marketing the products from their end to get orders. Manufacturers can work with numerous retailers at a time which means their probability of making profit increases. Every retailer will work hard to promote the products and get orders. This way, the manufacturer will have orders coming from all the retailers. Hence, his sales will multiply enormously.
Back in time, this business mode was not as profitable as it is today. Today, the internet has revamped the whole concept of drop shipping making it easier for companies to get orders and get the products shipped to the customer’s house. This easy to start business niche is exploding today with thousands of opportunities. Now is the time to get involved.