Affiliate Marketing Makes Easy

Drop Shipping - Selling Hard Goods
without Inventory

Drop Shipping is a smart choice, if you’re planning to sell hard goods online but without full time schedule.  

It’s not easy to operate a regular online shop, especially with multiple products for sale, since you have to maintain inventory, stocks storage, ship to customer, and the crucial part is the “before and after sale service”: products’ Q&A, goods return, shipping arrangement, service under warranty period (if applicable).

Meaning that you need man power and labor to fix all these jobs, unless you’re going full time, if not you may consider implement drop shipping.

What is Drop Shipping?

Drop shipping is a supply chain management technique in which you do not keep goods in stock, instead forward customer orders and shipment details to the manufacturer, distributor, or a wholesaler, who then ships the goods directly to the customer.

You make profit on the difference between the wholesale and retail price, in some cases, you may earn an agreed percentage of the sales in commission, paid by the supplier to you.

In this rapidly growing market, you can find more and more manufacturers are willing to drop ship, or fulfill the orders directly from their base to end user on receiving the order from the retailer. 

You need to identify such manufacturer or supplier for the products that they want to sell. Once such suppliers are found who are willing to drop ship, their products are listed on your web-store. You need not stock the products, as the order is fulfill directly by the suppliers.

You have the flexibility to fix resale prices for the products, to make reasonable profit. So the whole business model depends upon how you’re able to discover suppliers who can provide inventory at low prices.

An emerging trend in the drop ship business is private label drop shipping, in which you can find manufacturer produces a custom item for you and drop ships it with your business brand.

The Procedure

The whole business concept works in these steps; after located and confirm with your supplier:

  • You place products for sale on your online shop, or website.
  • When customer purchase, you process the payment and order, send your customer a receipt, with thankful message.
  • After received the payment, you forward the order to your supplier.
  • Your supplier packs and ships the order to your customer.
  • You pay the wholesale cost for the product, shipping and handling fees.
  • Your customer receives the product happily.

In this way you make profit from the difference between the selling price and the wholesale + labor cost.

The Benefits

Drop shipping allows you the ability to offer your customer a wide variety of products, especially matched to their needs, without having to stock and ship products.

Inventory Management - Since you are not in actual possession of the products it’s a very safe business operation. It proves to be a very effective model because cost of warehousing, investment of purchasing and worries of unsold inventory is eliminated.

Low Cost Operation - Since you do not keep stock, meaning it’s only require minimum cash flow to run your business.

Effective Marketing - Since you don’t spend money for acquiring and managing stock, you can use the extra money for effective marketing, such as paid advertising.

Fresh Inventory - Because you are not acquiring any inventory, chances of having dead and slow moving inventory is never happen. It results in you’re being able to list and sell only the fresh inventory available in the market.

Prevent Loss of Revenue - You are less susceptible to loss of revenue as a result of changes in tastes or trends because there is no such thing as excess or outdated inventory.

Crucial Factors

Some risks such as back-ordering may occur when you place a shipment request with a drop shipper, but the product is sold out.

Back-ordering may be accompanied by a long wait for a shipment while the supplier waits for new products, which may reflect badly on you.

A good wholesaler will keep retailers updated, but it is your job to be aware of the quantities that the wholesaler has available.

Responsibility – You must take full responsibility of your customers; follow up the order, especially the shipment schedule done by your drop shipper.

In case of any problem occurs or customer complaint, you must response quickly in order to maintain your credibility and trustworthy.

Important Steps

Choose the Right Products – It is important to research and find the right products to sell, products which match the niche and theme of your website, you can presell, review products on your webpage, and then divert target customers to your e-shop.

Find Reliable Drop Shipper - It is important to find a drop shipper that provides private-label drop shipping, this enable putting your company name and address on the shipped product.

Finding a drop shipper that provides fast delivery, is reliable, and has low prices when you start out is also important.

Resources and Solutions

Finding quality drop shippers takes a lot of time and resources. Because of this, it is best to use companies such as Worldwide Brands and Drop Ship Access.

Worldwide Brands is the product sourcing resource for drop-shippers. They offer light bulk, large volume, instant import buys, liquidators and market research data for every product search.

Drop Ship Access provides first-rate educational articles and how-to guides that are designed to teach members how to create a thriving e-commerce business, and achieve their dreams of building and growing a successful online business using the drop shipping model.

In case you would like to create an online shop, integration to drop shipping, which links to your website or blog, you may register with Shopify.

Shopify is an e-commerce/store solution that's easy to use and set up. Its various packages are designed to meet the needs of a growing business.

For affiliates who highly rely on passive models, you really need to gain high traffic to sustain; it’s a not easy for majority, you should consider starting your active monetization model such as selling hard goods online using drop shipping.

Affiliate Monetization > Drop Shipping