Drop Shipping is a way to sell products to a customer without actually having any products in stock.
When a customer orders a product, the drop shipper ( who we will now call the seller) then purchases that product from a third party, often a wholesaler, who then ships it directly to the customer.
The seller never comes into contact with the product. The customer pays the seller at the time the order is placed.
The great advantage to the seller is that they never need to keep any stock. The seller’s responsibility is to find the customers and order the products for them.
It is possible to get started with very little cash outlay.
No need to store products therefore no need for a warehouse.
No involvement with shipping or dealing with returns.
No need to manage stock levels
You can work from home online
The main disadvantage is that there is a very low profit margin in drop shipping.
As you have no control over stock, you may find that a product which has been ordered is no longer available, or that the price has changed.
If you are working with more than one supplier, things can get complicated.
The ultimate responsibility for the quality and the delivery and customer satisfaction rests with you. If you find the you are dealing with a poor wholesaler, this can lead to difficulties in this area.
In How and What to Work from Home Online for Moms I want to talk about the many benefits there are to working from home online for mothers who are at home with young children.
Why Work Online?
We all know how expensive it is to find good childcare for our children when we feel the need to go back to work, but the pressure to bring back that extra income into the home is so great nowadays. The bills don’t get any less when you have children – quite the opposite!
No doubt if you really enjoyed the job that you had prior to having your children, then you will find a way to go back to it.
But many mothers want to stay at home with their young children, they don’t want to miss a moment of their child’s development – their first smile, their first step, their first word. Once these moments are gone they can never be retrieved.