The idea of creating your own business brings you different emotions. There is the excitement, fear or anxiety, happiness and the urge to start it the soonest possible time. After deciding what kind of business to put up, you have to brace yourself as to how to start your business. You have to know all the pros and cons. You should also have the starting capital for the kind of business you plan to put up.
If money or finances is not your problem, that would be a great advantage on your part. However, if your finances is limited and you don’t have enough money to start your business, you can still find other options that can help you put up your own business. For instance, if you want to start your own retail store, consider what is drop shipping and start selling easily.
What Drop Shipping is All About
If you’re a new seller or entrepreneur Drop Shopping can really help you make a good start. But, what is drop shopping all about? To start with, drop shopping is a method used wherein the retailer is not really the owner of the goods he is selling. The retailer or the dropshipper here acts as the middle man of the manufacturer and the consumer. The retailer (dropshipper) takes order from the customer and then places a duplicate order with their manufacturer or supplier. The supplier receives that order and ships the product to the customer.
From customer point of view, dropshipping is like other online retail transaction. For example, Mr. George visits healthtwig.com and orders a Treadmill and the Treadmill is shipped to him.
Mr. George is happy. In reality, although Mr George orders a Treadmill from healthtwig.com but healthtwig.com being a drop shipper doesn’t actually have the Treadmill in their stock. So healthtwig.com places a duplicate order with their supplier, for example amazon.com. The amazon.com receives that order and ships the Treadmill to Mr George. And Mr. George is happy.
The profit made by the drop shipper would be the difference between the amount the supplier charge the dropshipper and the amount the dropshipper charge their customers.
Drop Spipping Advantages
As a dropshipper, you need not worry about producing or putting up a big amount as your capital. This is because you just have to purchase the goods when you already have an order. You do not have to buy different items to deal or sell to your customers. Because you are selling online on your website you can present or show a wide variety of goods to the customers. If they like what they saw, they can give you their orders. Another important thing about drop selling is that the risk involved in your capital is less because the goods you are selling are not stocked in your store. This means that, there’s no need for you to worry if your goods will be sold or will just be stocked in your store.
Putting up your retail store will not be easy. You have to consider many things to make your store well visited by your possible customers. The whole ambiance of your store should make your customers comfortable. This will give them a peaceful mind to consider what you have to offer and what you are selling.