Entrepreneur home business
Drop shipping is a great option for someone contemplating a home based business. Since drop shipping is basically an arrangement between you and the wholesaler or manufacturer of the product you intend to sell, where the manufacturer or wholesaler ships the product to your customers. You need not:
1. Store any inventory
2. Invest in any inventory
3. Take pains of logistics of shipping
And you gain by
1. Getting a good customer
2. Profit margin form the sale
3. Working from the comfort of your home or office.
A person planning on starting a home based business does so to
1. Supplement their income
2. Spend more time with their families
3. Work at their own will and hours
4. To be their own boss.
What can be simpler than simple trading business set up to run automatically, selling products that your target audience would need and creating your own customer base.
Drop shipping comes into picture where you just need to pick up orders from your customers and collect the money. Many may need to be followed up and the margin is in your product. All you need to do is to mail the drop shipper the money, list of products and the shipping address and he takes care of the rest. You can go back to playing with your children and look for the next customer.
Drop shipping saves you the cost and logistic headaches of building your own inventory, saves your monetary investment to buy the inventory, and saves you from dead stock and blocked money which may never be realized. No inventory, no leftovers and therefore no discount sales to clear your stock of obsolete items.
Drop shipping also makes sure that you dont need to follow up with FedEx or UPS and you dont need to run to post office to buy stamps and mail your parcels. Add new products when you want to, remove products that are not selling when you want to, as per market trends. All this, at the click of a mouse.
Selling products is easy compared to the hassles of fulfilling the orders and delivering the material, especially at the international level. To set up a delivery system of an international scale, it may take you years and it would certainly not be a home based business anymore. By drop shipping, you are conducting a home based business on a global scale, taking advantage of the drop shippers shipping arrangements already tested and tried in the past.
Once these modalities are out of your system, you can cultivate your home based business to suit your core competence of selling.
One of the foremost advantages of drop shipping is that you do not need to worry about inventory and can go on selling as many as you can. All goods detached will be labeled with your name and address of the sender, thus enhancing your goodwill by giving the customer a picture that you are a big company that has a warehouse. You do not need to limit your sales as in normal business since you do not have the limitations of working capital, you pay after the money from sale comes in, thus keeping your liquidity in tact.
Drop shipping may bring in lesser profit margins compared to traditional retail but then there is nothing to complain about since you are not investing and not paying for shipping also.
All said and done, drop shipping works as it is today, and is probably the best home based business one can think of.
If you are contemplating starting a home based business, consider the option of drop shipping.