Drop ShippingHow It worksSlide 3ProsConsGood ArticlesDrop Shipping SitesQuestions to ask a ShipperHow It worksThis is why eBay is so competitive, everyone gets the items at the same cost and then floods the market.You don’t have to sell on eBay to use a dropshipperIf you would like to use a dropshipper on your site you need to look at the pros and consProsNo inventoryLower OverheadNo packing or shipping1000’s of products to choose fromNo order minimumCan sell 250 different products that each have a margin of $30 - $300 profit, and doesn’t cost you anything for inventory.ConsFee’s ! to sign up or every time you drop ship a productDelay of stockDamaged GoodsUnreliable Beware of fake dropshippersUnhappy customers because of unreliable vendorsGood ArticlesWorldwidebrands.com-Free stuff-Articles-Lots of good info on this siteGood Articles-What is drop shipping- “Don’t get taken by fake suppliers”-“Dropshipping Pros and Cons”Drop Shipping SitesDropShipDirect.com-No Fees-ReliableDoba.com - Monthly fee, expensive, but 2 week free trialSimplx.com - No cost, but you pay upfront and then get a rebate weeks laterQuestions to ask a Shipper1. What's the wholesale price they can offer you on their products? You'll need to make sure the wholesale price they offer is low enough that you'll be able to generate a good profit based on what you'll be able to sell their products for.2. Do they charge a handling fee for drop shipping? If so, how much? Most companies that drop ship will simply add the cost of UPS or FedEx shipping onto your wholesale price, but some will also charge you a handling fee (generally between $1 and $5). This is to offset their cost of picking, packing, and processing the order for you.3. How do they ship their products? Almost every company that drop ships products will use a major nationwide delivery service like UPS or FedEx. Ask them to include tracking numbers with the order confirmations they send. This will save you many potential problems when customers ask, "Where is my order?"4. How do they bill you? Most drop shippers will bill your credit card the wholesale price of the product plus shipping and handling as soon as they receive an order from you. With others, you may be able to set up a monthly billing cycle where you submit payment for all orders at the end of each month.5. How do they deal with product returns? Be sure to find out what their policy is regarding returns. Most reputable companies will offer some kind of guarantee or warranty on their products and will deal with returns for you. This way, if a customer contacts you with a return, you can simply tell them the manufacturer will be happy to speak with them directly. If your manufacturer doesn't accept returns, look out! You'll be the one stuck replacing defective merchandise for your
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