Dropship Program is a low-risk business model with dead stock – no more worries about unwanted inventory.Online electronics dropshipper Ankaka announces the advantages of a dropship program.
Shenzhen, Guangdong (support.ankaka.com) January 16, 2013
When it comes to the dropship program, this is a supply chain management technique in which a retailer does not stock any goods as inventory but rather, transfers the orders from customers and the shipment details to a wholesaler or manufacturer. The wholesaler or manufacturer will then ship the goods to the customer directly. As with all retail businesses, the retailers will make their profits because of the difference that is between a wholesale and a retail price. However, some retailers can agree to earn a certain percentage in the form of commission paid by a wholesaler.
There are many procedures that can be used to conduct such a business and this includes keeping some items to display in a regular store and the customers are able to inspect these goods because they are similar to the ones that they can buy. Other retailers can provide a catalogue for the prospective customers to peruse and when they have found something that they are interested to buy, they can place an order. Still, other retailers can have an online store or a website where customers can place their orders. Such an online electronics store is great because there is no need to pay for expensive office space or to pay for utilities and employee salaries.
The retailers that are in this business can keep this fact hidden from their customers because they do not want to be stigmatized or discriminated against. In addition, these retailers would not like the customers to know from where the goods are being sourced. This is because if the customer gets to learn this fact, they might decide t overlook the retailer and go straight to them manufacturer or wholesaler. To hide this fact, the retailer does blind shipping, that is, the merchandise is shipped without providing a returns address.
There are many reasons why dropship program is attractive and the main one is the fact that people can have generous profit margins. Competing for price is a major concern for a small business and if people can get a niche that is not saturated, people can be able to earn big bucks. Another thing that makes this type of business attractive is the fact that packaging and shipping can be done for people at no cost. In addition, there will be excellent customer service from the wholesaler.
Transparent communication can be provided and their shipping address can be provided to the customers in order to hide the fact that people are a drop shipper. Another good thing about this business is the fact that people do not even have to set up their own website. All that people need to do is to create an account and then start placing their orders when people get customers. Another good thing is the fact that the wholesaler will not compete with people on pricing or for their customers. When people operate such a business, they will appear like a major corporation because of the variety of wholesale electronic gadgets that they are offering.