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  • Mahibay/Mahibay.com Provides Tips Drop Shipping

    Mahibay/Mahibay.com is providing you some of the most valuable tips regarding drop shipping here. If at any time you have more questions or you don’t fully understand what is being said here, please Click Here and talk with a Mahibay/Mahibay.com representative right away.

    Tamingthebeast.net

    What is drop shipping?

    Drop shipping can be a very simple and effective way to get involved in ecommerce. Many established online merchants are now turning to drop shipping strategies as a means of minimizing stock on hand, decreasing overall shipping costs and cutting down on delivery times to customers.

    Drop shipping allows web site owners to send single/low quantity unit orders gathered on their web sites to manufacturers, or wholesale warehouses, who in turn ship the items directly to the customers of the web site owner; i.e. you do the promotion and collect the payment, and the drop shipper looks after order fulfillment.

    Other advantages of the drop shipping model

    • Because a drop shipper can buy in huge volumes, they will also be able to offer you the best prices on products and shipping, usually wholesale, which will return a greater profit to you.

    • There's no capital investment and no danger of you suddenly having a pile of outdated items in your inventory

    • Using drop shipping allows you great flexibility in terms of product range - promote a dozen items or promote a thousand!

    • Instead of worrying about inventory and delivery, you get to focus on listening to the market and discovering the products your visitors you want - and then being able to rapidly add them to your site.

    Challenges and dangers of drop shipping

    Many wholesale companies will have an interest in teaming up with you in a drop shipping arrangement as it's an easy way for them to generate extra revenue, but there's a number of points to consider and things to look out for:

    Pricing points

    Don't accept that the first drop shipper you come across will give you the best deal - shop around for the most suitable wholesaler.

    Drop ship fees and charges

    Some drop shippers will have a handling fee over and above freight costs - it's important to know all the costs involved so you can calculate your profit margins accurately. Any wholesale company that wants to charge you a regular "participation" fee should be avoided - the only time you should have to pay a drop ship company *anything* is in connection with a specific order.

    Shipping

    Is the drop shipper using "Clumsy Cal's Discount Express" or Fedex? Will they ship international? You'll want to ensure their shipping methods will see your clients get their products in one piece.

    Also bear in mind that you may need a specific type of shopping cart in order to handle drop shipping. Many shopping carts only allow for one "ship from" zip code in the configuration for freight calculations. If you are dealing with a number of drop-shippers you may have dozens of point-of-origin zip codes - and this can be a real headache if freight is based on distance.

    Accounts

    Will the drop shipping company automatically debit your credit card on each order you submit, or can you get monthly payment terms? When you are starting out with a company, they are unlikely to offer credit, but it's good to check if this will be possible once you've established credibility.

    Support, returns and refunds

    The last thing you'll want is to be caught up in a nasty situation where you have a number of returns - and have to foot the bill. Ask the drop shipping company about their returns policy, what kind of support they'll offer you for their products and about any guarantees associated with their products - and get it in writing.

    Credibility

    How long have the drop shippers been around for? Do they respond to your requests for information rapidly and professionally? Young drop ship companies and wholesalers have the habit of going belly up quickly, or growing too rapidly

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