Goth Dropshipping

By Lynda Kelly

Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer. As in all retail businesses, the retailers make their profit on the difference between the wholesale and retail price.
Procedure for dropshipping
Some drop shipping retailers may keep "show" items on display in stores, so that customers can inspect an item similar to those that they can purchase. Other retailers may provide only a catalogue or website.
Retailers that drop ship merchandise from wholesalers may take measures to hide this fact to avoid any stigma, or to keep the wholesale source from becoming widely known. This can be effected by "blind shipping" (shipping merchandise without a return address), or "private label shipping" (having merchandise shipped from the wholesaler with a return address customized to the retailer). A customized packing slip may also be included by the wholesaler, indicating the retailer's company name, logo, and/or contact information.
Small Business
Drop shipping can occur when a small retailer who typically sells in small quantities to the general public receives a single large order for a product. Rather than route the shipment through the retail store, the retailer may arrange for the goods to be shipped directly to the customer. Drop shipping is also very common with big ticket items like steel buildings where the retailer will take a deposit and have the building shipped direct to the buyer's building site from the supplier's manufacturing facility.
Online Auctions
Many sellers on online auction sites, such as eBay, also drop ship. Often, a seller will list an item as new and ship the item directly from the wholesaler to the highest bidder. The seller profits from the difference between the winning bid and the wholesale price, minus any selling and merchant fees from the auction site. A seller is permitted to list items that are currently not in his/her own possession, provided that he/she follows eBay's policy on pre-sale items.
Custom Products
A new emerging trend in the drop ship business is private label drop shipping, in which a manufacturer produces a custom item for a retailer and drop ships it. The range of private label drop shipped items varies from simple keychains and t-shirts with custom logos or pictures to customized formulations for vitamins and nutritional supplements.
Benefits of Dropshipping
Two main benefits of drop shipping are - no upfront inventory to purchase and a positive cash flow cycle. A positive cash flow cycle occurs because the seller is paid when the purchase is made. The seller usually pays the wholesaler using a pre payment or credit terms. Therefore, there is a period of time in which the seller has the customer's money.

Other benefits of drop shipping include:
* Eliminates duplication of effort as only one warehouse will pick, pack and ship the product thereby reducing costs in the supply chain.
* Reduces total inventory management and shipping costs which can be passed on to the customer by the retailer.
More Benefits of Dropshipping
* Work From Home
* Looking to work from home, or looking to supplement your income?
* No stock holding required
* No need to hold stock, only order what you sell and we will dispatch it for you.
* No Minimum Quantity Restriction
* No minimum order requirements, only order stuff as your customers want it saving time and money on buying stock.
* Let us dispatch the goods you sell.
* We dispatch all your orders making it easy for you to manage.
* You keep 100% of the profits.
* Once you sell the products, you only pay the costs for the products and keep all the profit for yourself.
* You set your own price.
* Once you set up your account you set the price you want to charge your customers.

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