About Drop Shipping - Product Souring Tips
Tuesday, May 20th, 2008If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
If you want to tap into the lucrative world of non-information products then you need to get a firm handle on product sourcing.
Once you’ve identified your niche there are two basic ways of sourcing products if you are starting out.
1. Drop shipping – your wholesaler stores the products you offer on your website. When you make a sale, the wholesaler ships the product directly to your customer. Your customer pays your retail price, and you pay the drop shipper your wholesale price.
2. Light bulk – you buy products from your wholesale supplier in small, affordable quantities (under $500). You’re in charge of all aspects of warehousing the products and shipping them to your customers.
Basic Methods - The Upside
Drop shipping lets you bypass inventory investment, as well as storage or shipping issues. You get to test how well new items sell, and you can try products that are hard to carry or ship.
Light bulk lets you buy in smaller quantities, once you have found which drop shipping stock sells well. It boosts your profit margins over drop shipping. You gain more control over your inventory.
Basic Methods - The Downside
Drop shipping - your the profit margins are usually slim.
Light Bulk - sourcing suppliers who sell in such small lots.
There are three other methods of product sorucing - not recommeded for beginners though:
1. Volume wholesale – you buy products from your wholesale supplier in large quantities. You also take care of storage and shipping.
2. Importing – you purchase goods from manufacturers in other countries, taking advantage of lower production costs.
3. Liquidation – you purchase excess merchandise in lots from reclamation centers or B2B auction websites, often when manufacturers or suppliers, often at a small percentage of the wholesale cost.
Its advisable to use a reputable dropshipping company, such as World Brands run by Chris Malta.
Kerry Atma
internet-marketing-pro-files.com

















