Drop shipping is a type of retail fulfillment that lets you sell products without managing, storing, and shipping inventory. You can connect online to sell products with drop shipping suppliers.
It is not traditional online retail, drop shipping releases the merchant from having to fulfill their orders. It means you skip the time and cost of manufacturing products, acquiring stock, managing inventory, and at last shipping the order to the customer. Drop shipping simplifies the fulfillment process for merchants. It can also reduce the initial cost which is very important for building a startup e-Commerce business, especially low budget business.
Is drop shipping legal?
Yes, it is a 100% legal method of order fulfillment. Find out possible drop shipping suppliers and make sure to read the agreement with full attention to avoid any miss happenings.
Is Drop shipping allowed on Amazon?
Yes, if your business follows the drop shipping policy of Amazon, you can use drop shipping for your business on Amazon, but if you want to use Amazon services for your business, you must:
*Should have seller record of your products
*Prove that you are the seller of the products
*Be responsible for accepting the products which returned by customers
With drop shipping on Amazon, the seller of record cannot handle the product directly, he must have to use a third party to source and store products, and ship orders to the customer directly. A sign up required by Amazon drop shipping as a seller on Amazon’s website. Regardless of how many items you sell, the Individual plan cost to drop shipping on Amazon is $0.99, per unit and the professional plan costs you approximately $39.99. Here is some other content related to Amazon FBA.
Is drop shipping profitable on Amazon?
Drop shipping can be profitable. Drop shipping is a low-risk business that allows you to sell the products to your customer with minimum running cost. Drop shippers make 20% to 30% from each sale, on average, it means $1000 to $5000 per month.
Drop shipping is still trending profitable in 2021, with a lot of people in the pipeline to start drop shipping stores. It’s not like quick money stores it’s like building a real business store. One can start drop shipping with no money, because you just have to choose the supplier or wholesaler to get access to the inventory, if you choose wisely, you can start drop shipping with a minimum cost.
Most of the drop shippers start doing business without any proper understanding of the risk factors, therefore the highest success rate during the first year of operations is just 10 percent. There are very few overnight success stories, if you want to get profit from your store it takes between six to 12 months.
Why did drop shippers fail?
*Wrong product selection
*Limited resources/investment
*Have no business patience
*Wrong platform
*delaying in shipment
*Website design is not attractive
Conclusion:
A drop shipping business is a lot easier to start but once you start you have to market it just like any other business, after the store is established, you should focus on vertical integration and engage the maximum suppliers and try to ensure the customers that you have the best price products because now the customers very much aware that most stores are selling the same product so they can easily search out the better deal. But if you want to attract high-ticket clients, having a high price is not a bad thing. A drop shipper should have good managerial skills and he should be able to reply to the customer queries and satisfy them with their products.
