Why Dropshipping Works by Shopster

Article by Shopster

Why Dropshipping Works
Business owners who are not familiar with drop shipping are missing out big time. Basically, this is a supply chain management technique that allows retailers to focus on more important aspects of their business.

If you’re thinking about building an online store an selling products online but don’t have the capital to start big, then consider this your best option. First off, you don’t have to purchase any inventory upfront. This also means saving a huge amount on the cost of storage. Second, it removes the hassles of shipping and handling from your end.

Dropshipping entails selling goods on behalf of a supplier. All the backend work involved in order fulfillment are handled by the said dropship supplier – this includes filling the order and shipping it out to the customer.

The trick to making money via a dropship business is finding a supplier with good pricing. Remember, dropship suppliers are not necessarily wholesalers. While there are those that offer items in bulk, some dropshippers are willing to supply to sellers looking for only a small amount of items. You can make profit off the dropshipped items with the difference between the supplier’s price and yours – this is called the profit margin.

Essentially, dropshipping is a good way to enter the retail business because it removes overhead cost while still offering you profit. Here’s a tip: choose items that are popular among young, internet savvy buyers. Plus points if the product is difficult to find in local stores.

One of the most successful dropship items last year was the Nintendo WII. Stocks were depleted in most local stores and the market – the younger audience – had no qualms about making purchases online. This combination made the Nintendo WII a huge seller in the dropship world.

Using popular sales channels like eBay, dropshipping can work for you.

Shopster is an eBay Certified Solutions Provider providing additional product and inventory for eBay sellers through dropshipping. Shopster has customers in 22 countries and provides full service dropshipping to both the United States and Canada.