by J. Stephen Pope
Your customer sees a marvelous array of products on your website. After thoughtful consideration, she purchases the product she wants. Amazingly, you have never actually seen the product. That is because your supplier shipped the order directly to her.
1. Problems With Stocking Inventory
After deciding what products you will sell, you are immediately faced with many challenges.
First: "To stock my products, will I need to rent store or warehouse space? I was hoping to sell by Internet, mail order, or export, but I don't have much storage space for inventory at home."
Second: "Will the supplier even deal with me if I don't have a retail location? I was counting on keeping my overhead down by operating from home."
Third: "I know that many manufacturers and distributors have a minimum order, sometimes in the thousands of dollars. I don't have that kind of money!"
Fourth: "Even if I did have the money, why should I tie it up in inventory? How do I know if the product will even sell?"
Fifth: "I guess I will have to add extra insurance coverage for my inventory. Maybe I better upgrade my security system while I'm at it."
Sixth: "The shipping charges are going to kill me. First, I have to pay to get the goods here (freight-in). Then, I have to pay to ship the goods out to my customers (freight-out)."
Seventh: "If I expand and hire employees, how will I control the inventory? How will I know if my employees are stealing from me?"
Eighth: "How much time and money am I going to spend packaging and fulfilling orders?"
These problems can be reduced or eliminated by drop shipping.
Part II Drop Shipping to the Rescue
J. Stephen Pope, President of Pope Consulting Inc., http://www.popeconsultinginc.com/ has been helping clients to earn maximum business profits for over twenty years.
For valuable Work at Home Small Business Ideas, visit:
Choosing a Fulfillment House - Fees and Pricing
Literature Fulfillment - Choosing Fulfillment Services
Product Fulfillment - manufacturing, warehousing, assembly and delivery
How Drop Shipping Works
Drop Ship Your Way to Wealth - Drop Shipping to the Rescue
Inventory Management - Overview
Supply Chain Management Overview - Participants and Processes