Drop Shipping Increases Profits

Drop Shipping Increases Profits



Drop Shipping Increases Profits
You would like to​ increase your income by selling other peoples` products but you just don`t have the money to​ stock inventory.
On the other hand, perhaps you have lots of​ your own product and would like to​ increase your sales, but you don`t have a​ lot of​ money for advertising.
The solution to​ both problems may lie in​ drop shipping.
1 .​
Sell Products You Don`t Own
You would like to​ sell a​ variety of​ products but you don`t have very much money .​
Don`t worry! Your customers will supply you with the necessary capital .​
You don`t have to​ stock inventory .​
You can drop ship orders.
For example, you receive a​ credit card order for a​ product retailing for one hundred dollars plus five dollars shipping .​
You now turn around and fax (or e-mail or​ phone) your order to​ your dropship supplier .​
You pay the fifty dollar wholesale product cost plus five dollars shipping using your own credit card.
Your dropship supplier now ships the order to​ your customer .​
With no investment in​ inventory, your gross profit equals fifty dollars.
2 .​
Sell Products You Do Own
Would you like more sales of​ your own products? Consider drop shipping your products for other dealers.
As an​ example, you may have a​ product that sells for one hundred dollars plus shipping .​
Every time you sell that product yourself, you will have a​ sale of​ one hundred dollars .​
However, how many one hundred dollar sales can you make personally?
Now consider the situation where you offer your dealers a​ wholesale price of​ fifty dollars .​
You could have hundreds or​ thousands of​ persons selling for you.
It is​ true that each product sale now only brings you only fifty dollars in​ sales .​
However, these are sales that you wouldn`t otherwise have .​
What would it​ cost you to​ obtain these sales through traditional advertising channels? Would your advertising even bring you the desired results?
Keep in​ mind that with this drop shipping arrangement, you pay only for results .​
When a​ dealer retails your product for one hundred dollars, he is​ really receiving a​ fifty dollar profit for selling your product; you could view it​ as​ a​ sales commission .​
You receive only fifty dollars per product sale but sell way more than without drop shipping .​
You ship directly to​ the customer for your dealer.
So, whether you sell other peoples` products or​ your own, drop shipping can increase your sales, preserve capital, and maximize business profits.




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