Is it possible for your local business to sell products online without committing any money or holding large amounts of inventory? The answer is yes you can if you use drop shipping. This is a great solution to any local business that has a large volume of online sales but doesn’t want to tie up its cash flow in inventory purchasing. So how does drop shipping work exactly? Drop shipping is basically outsourcing your inventory management to your wholesale supplier so that when a customer orders and pays for a product from your website or your Ebay account or Amazon Seller account, you forward the details of the order to your wholesale supplier who ships the item directly to the buyer from his factory. As the local business owner, you will only get charged the wholesale price and a handling fee by your supplier. Drop shipping has its benefits to the local business, saving you the costs associated with buying inventory, storage facilities and order fulfillment. Many local businesses are able to operate with minimal cash flow and keep their operating expenses low by using drop shipping as part of their marketing strategy.
How to set up drop shipping for your local business
1. Set up your sales site either on your own website, on Ebay or Amazon.
2. Research online for a wholesale supplier that has a track record in drop shipping for local businesses or online businesses. The best and most reliable ones are usually found when you register as part of an online seller organization or forum. This will make it much easier to find and work with one through your business network than if you approached them as an individual local business.
3. Register an account with your wholesale supplier, and upload their product catalog onto your site. Calculate your local business retail price by taking in to account the wholesale price, the suppliers handling fee, financial fees charged by your credit card or payment processor and the site fees charged by the merchant site such as Amazon.
4. Set up a business system that will ensure a seamless transaction process from the time the sale is made to when the product is received by the customer.
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