Make More Money With Your Blog - Drop Shipping
We all are in the online business world because we want to make money, work for ourselves, gain additional income, support our families and build passive income.
In most cases people look at 2 models:
Direct product sales...selling items you own or have ìpurchased wholesale to sell retail.
Affiliate sales ...promoting others items for commission
However there is another model that done correctly avoids the risk of spending thousands stockpiling and purchasing stock while seriously increasing profit and commission ...DROP SHIPPING
WHAT IS DROP SHIPPING?
Drop Shipping is in reality a supply chain management technique.
You as the retailer do not keep goods in stock nor do you spend in advance purchasing items wholesale.
As a drop shipper you sell items directly on your website and when a customer orders a product you transfer the order and customers shipment details to your partner manufacturer or another wholesaler who then fulfils and ships the goods directly to your customer.
Drop shipping allows you, legally, to sell products you don’t actually own.
This method is brilliant if you wish to set up your own online store. You can list and sell as many products as you wish for no initial outlay of money.
You control the cost and markup on products meaning a much greater profit margin than affiliate sales. For example if you sell PRODUCT A as an Amazon Affiliate and the cost to the customer is $100 you'll probably get 10% meaning $10. As a dropshipper the wholesaler may list PRODUCT A at $50. You can then sell it for $60 - $100 or more meaning you control the profit margins.
When a customer purchases a product from your store you forward the order to your supplier, minus your profit.
The supplier ships the goods to your customer on behalf of your company.
As with any online models the are advantages and risks. Lets look at some of these