So you have decided to sell a physical product either through your street store or online store. In your physical store you have little option but to hold stock and this can be quite costly and depending on the type of product you may end up selling it at cost or below to clear it at the end of a season.
Online this may also be the case but as shoppers will be browsing on the web rather than in person you do not really have to hold stock. A much cheaper and less risky option is to use what is called a Dropshipper.
A Dropshipper is a wholesaler who will break bulk and ship individual items to your retail customers. This is a great way to do business,sure your margins may not be quite the same but you will not have large sums tied up in stock and you will not run the risk of ending up with a pile of hard to sell items at the end of the season
There are plenty of dropship lists on the web, make sure to check out as many as possible for your particular supplies as prices can vary. Most of them will accept credit card and normally you will have been paid through your shopping cart before ordering the shipment cash flow therefore remains strong.
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Dropshipping
keeping stock in your shop can be costly and potentially risky also. The biggest retailers dont pay their suppliers until long after they have sold the merchandise therefore avoiding any cashflow issues.We on the otherhand sometimes even have to pay for stock before it is delivered to us and even then need to keep a large stock of items on hand just to make one sale. A lot of money is therefore tied up and probably on loan from a bank at an interest rate.
You might wonder whi I used the word risky in the above paragraph. Well put yourself in the shoes of a fashion shop. The buyer needs to second guess the market for next year and buy ahead. This means that they are usually left with a lot of outdating stock that has to be sold off at cost or even below at the end of season sale. This is not good for any business.
Then theres the cost of storage for all of that stuff for month.
Dropshipping is a great solution for the online store and will save you time money and risk. The dropshipper will hold the stock for you and send it to your customers for a small cost. Noo need for you to have any more storage or get involved in shipping. Just make your sales collect the money and pay the dropshipper.
