by Chris Malta & Robin Cowie
Many online sellers tout drop shipping for its ease; others dismiss it, arguing it leaves no room for profit. Like every other product sourcing method, drop shipping brings its own unique set of advantages and drawbacks to your E-Biz:
The Basics
Dropshipping is service some wholesale distributors provide that enables you to sell items on your web site without physically stocking them. The wholesaler warehouses large quantities of product, which you list in your web store. Your retail customers place their orders with you, and you pass them on to the drop shipper. The drop shipper sends the product directly to your customers, but remains invisible to them. The end result is that your small business appears much larger than it really is.
The Upside
According to Jason Sanchez, CEO of One Net Enterprises (OneInc.com), dropshipping presents your business with numerous benefits:
Says Sanchez, "The costs that go into warehousing and shipping individual items can be tremendous. It doesn't become efficient to do so, until you do it on a large enough scale."
Continue Reading Dropshipping Pros and Cons - the Cost of Convenience
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