Drop Shipping - Pros and Cons

Make Money — Tue, 21 Jul 2009 04:27:12 GMT

The Pros of drop shipping

No need for managing inventory

Retailers can offer a variety of wholesale or retail products without managing inventory. The drop shippers do this for you. Suppliers or drop shippers purchase or get the items from the warehouse and directly delivers it to the retailer's buyer. They are invisible to the buyers meaning the package will be sent using the retailer's contact details as the sender.Retailers save up some space and storage costs. This is like outsourcing a warehouse. The idea here is that you only upload images of your products or product line or you have 1 or 2 stocks which are only for public display.

No need for managing insurance

Retailers do not have to keep up with insurance costs. If you choose not to drop ship the item, you will have to ship it out yourself or look or a shipping company and will pay for the insurance of the product.

No upfront cash out

Retailers have no upfront cash out because you don't buy those items if it is not sold. Isn't it neat?

The Cons of drop shipping

Spend time managing relationship with different drop shippers

Retailers who have had experience with drop shipper's comments on taking up a lot of man hours to establish a good working relationship with different drop shippers. Of course, you cannot limit yourself to just getting one because of the different product lines that you are reselling. The hours spent in making the orders to each drop shipper and the time spent in making sure that the product and service is fast and reliable. You also have to squeeze in time for updating a sales and monitoring system. You are maybe cutting down on your overhead costs but you are increasing your man hours.

No control how you item is packaged

Retailers have no control or you do not see how your item is packaged. Well, I guess it is not on the top of your concern list but still it is a concern. Especially if the item is fragile, you must be very careful with its packaging. If in the process the item is broken then you get an unsatisfied customer and you would not want that because it will taint your reputation not theirs.

Perfume Dropshipping

Make Money — Mon, 20 Jul 2009 17:18:00 GMT

Perfume dropshipping can be a lucrative method of income generation. To begin with, drop shipping is a product delivery service that allows the retailer to sell his/her product to consumers without investing in whole-sale or bulk quantities. Therefore when it comes to perfume, the retailer receives the customer's payment and then gives the perfume drop shipper the customer's order and the address of delivery. The drop shipper then delivers the perfume directly to the customer.

Most perfume drop shippers run their businesses via the web. On their web pages, they include names of the available fragrances, the cost, and images of the items. After the mode of payment is agreed upon, the retailer only needs to key in the customer's address and the order item. The drop shipper then delivers the perfume to the client. Some of the more known online drop shippers are Aur Fragrance of Paris France, Fragrance X and Fragrance Net. The dropshiper's physical office can be located at either the country of origin or the place of demand. For example, Aur Fragrance is located in France where the perfumes are made while Fragrance Net is located in New York where the demand for designer fragrances is high.

While it can be a lengthy process, perfume dropship allows the consumer to get customized fragrances that might not be available in that specific area. In fact, most of the fragrances requested in perfume dropship are usually imported from places such as France and many other European countries. The commonly shipped fragrances are Calvin Klein, Prada, Hugo Boss and Davidoff. Perfume dropship enables consumers from all over the world to purchase authentic fragrances.

Almost every designer fragrance carries hefty price tags. This discourages would be sellers from venturing into the business of stocking and selling designer made fragrances. However, the problem can easily be circumvented by making engaging a drop shipper.

The dropper would be the manufacture of the perfume. The retailer only role is reduced to identifying the target market. eBay is a good market place where one can set up shop for perfumes and other fragrances. The beauty of having a perfume dropship manufacturer is that one does not to keep inventory which greatly the cost of setting up the whole business venture.

The price quoted by the retailer to the consumer is mark up to include his profit. Once a client places an order for perfumes, the retailer forwards the order to the manufacturer. It is up to the manufacture to package and ship the goods requested to the specified address. On receiving the goods, the consumer pays settles the invoice with the retailer who sends the manufacturer the check minus his commission.

Money Forum: Discuss How To Make Money

Drop Shipping - Pros and Cons

The Pros of drop shipping

The Cons of drop shipping

Perfume Dropshipping