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Drop Shipping Home Business

People are slowly realizing that it's futile for one to work in a small office from eight in the morning to 5 in the afternoon in a very restricting and uncomfortable uniform. With the number of internet jobs and home based business, it's becoming less and less necessary to get out of the house in order to earn money. If you try searching for home based businesses online, you will be overwhelmed with the number of opportunities that are just waiting for you to try. There are some business ideas that have existed for a long time now while there are also others that are relatively new like establishing a drop shipping home business.

Before I start enumerating the benefits of it, I'll first explain its very nature. In drop shipping, the retailers still look for individuals to market certain products. They, however, do not keep these goods in stock. Rather, the manufacturer ships the orders directly to the buyers without even passing through the retailers. Profits are still generated in the same traditional manner, through the difference of the retail price subtracted by the wholesale price.

In small companies, drop shipping occurs when the store receives a large order for a specific product that they sell. Instead of having to order the goods from the manufacturer and then ship them again to the buyer once they receive the package, the merchant may have the order sent directly to the buyer from the manufacturer. But you don't have to rent space so that you can turn it into a store and then fill it with show items. You may also sell goods online. You may start your own website that includes a list of the goods that you sell. If you don't want to go through the trouble of maintaining a website, you may sell your goods in online auction sites such as the famous eBay.

But just because you drop ship doesn't mean that you need to let your costumers know that. Instruct your wholesaler to ship the items without a return address or with your own return address instead. You may even ask your wholesaler to create a packing slip bearing your company's name, insignia and contact information. You have to adopt these measures to ensure that your buyers do not know that you really don't have the goods in your inventory. Your clients may also know the manufacturer who is supplying you with all the goods and opt to do direct transaction from then on.

In the early days, the retailer and the supplier were often both from the same country. However, with the help of technology, China drop shippers have also taken part in drop shipping. The latest trend in drop shipping is to let the suppliers make specially designed items for the retailers. Now, goods may be customized according to what the retailers want.

Drop shipping has a number of advantages strapped to its belt. For one, you save in shipping costs as well as time because the manufacturer does the packing and the shipment goes straight to the buyer hence eliminating the unnecessary pit stops. Secondly, a retailer does not have to put up much in investments because the retailer only pays the supplier when it receives payment from the buyer. This eliminates the perennial problem of having a full inventory of goods that you have already paid for without anyone to buy them.

If you're interested in it, take note of a few things. First, use technology to manage your drop ship orders. Websites like VendorNet act as a place for suppliers and retailers to get connected online. Using the computer for orders and this will help you avoid lost orders and late deliveries. Second, never underestimate the power of good communication. Set your standards clear but always keep a good working relationship with your suppliers. Provide incentives to manufacturers who are doing well with their shipments and drop the ones that aren't doing very good.

You can drop ship almost anything your buyer needs and is willing to purchase. You can drop ship computers, watches, video games and even costume jewelry. But remember that a good drop shipping home business ultimately depends on your drop ship source.

About the Author
Tom McMullen
writes articles related to home business
You can see more of his articles at:
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