The conception of drop shipping is really simple. As a work from home business marketer, you’ll sell and promote products to your customers. Rather than storing the actual merchandise yourself, whenever you receive an order from a customer, you will send the information along to the drop shipper. They, in turn, will package the order and send it directly to the customer.
Drop shipping is a merchandise delivery process in which the seller (you, the home business person) accepts payment for an order, but the product(s) are ship directly from the merchandiser to your customer. You acts as the middleman between the merchandiser and the customer. Your profit in the transaction is the difference between the wholesale and retail price of the items sold.
Drop shippers eliminate the hassle associated with carrying and managing inventory and merchandise to sell on online. With all of the popular internet auction websites today, you don’t need your own website to make money from home with drop shipping. Alternatively, you can just sell items on these online auction websites and then have them drop shipped to the winners.
Although it is not a requirement to have your own website, you most certainly can use one. Any method that promote your service is valid and can be profitable to your work at home drop shipping business.
Some drop shippers even handle the processing of payments for you, as well. If you don’t mind putting your reputation on the line and allowing a third party to handle your business affairs, drop shipping is the way to go. You are ultimately responsible for maintaining communication with your customers to ensure their satisfaction.
Drop shipping offer you these two significant benefits; 1) the elimination of upfront inventory and 2) positive cash-flow cycle. A positive cash flow cycle occurs because you is paid when the purchase is made. The is a period of time in which you has the customer’s money, but has not yet paid the wholesaler.
As in any business, some risks are involved in drop shipping home business. For instance, back order may occur when you places a shipment request with the merchandiser, but the product is sold out. Back order may be accompanied by a long wait for a shipment while the merchandiser waits for new products, which may reflect badly on you. A good drop shipper will keep their sellers updated, but it is the business owner’s task to be aware of the quantities that the drop shipper has available.