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Drop Shipping Basics
How does drop shipping work?
Drop shipping is the shipping of merchandise from a supplier directly to a retailer's customer. Meaning, you—the retailer—can ship to your customers directly from the suppliers' warehouses. This process minimizes the risk to you because you do not need to buy the product until it has sold. Suppliers take care of the warehousing, packaging, and shipping of products, saving you a great deal of money.
How does a drop shipping source benefit you?
- You can become a retailer without needing to invest large amounts of money.
- You can start a business with very little risk.
- You don't have to carry inventory or pay for inventory upfront—if the product doesn't sell, you never have to buy it.
- You don't have to buy packaging materials and shipping labels, nor will you need a shipping account.
- You don't have to manage product returns.
- You purchase products at wholesale pricing and set your own retail prices...
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