Before going into the details of how dropshipping works, first of all, you need to know exactly what Drop Shipping is. Drop Shipping is a process by means of which you are able to start an online business from home, without having to outlay for any stock.
It is a technique that allows you to start selling products to customers straight away without having to keep stock or inventory and without the need for any storage space or warehouse. The person or business selling products to the customer (using drop shipping suppliers) is called a ‘retailer’. If you purchase an online eCommerce package from Social Stores Online, which includes your own Ecommerce Website and Facebook Store – you will become an instant online retailer. While a person who dropships the product to your customer is called the drop shipping supplier or the ‘dropshipper’.
The retailer (you) receives payment from the customer (customer pays you the marked up retail price). The retailer then places the order with the drop shipping supplier, and pays them their price. The retailers profit is the amount that comes from subtracting the dropshippers price from the retail price.
Your customer pays you your Retail Price, as listed in your Store
Cost is $480.00 for a Pram
You pay the dropshipping suppliers their price.
Cost is $250.00 for the Pram
Your profit in this example is the difference between the two prices
Profit is $230.00
Drop Shipping is becoming increasingly more and more popular for online businesses.
Retailers list products for sale in their online stores. Once the retailer gets an order, he/she simply forwards the details to the drop shipping supplier and they are then responsible for taking care of the packaging of the products, and for the shipment of the order to the door step of the customer. The retailer is not concerned with any of these tasks. He/she is only responsible for getting the payment and the order details to the supplier.
Using Dropshipping services and dropshipping suppliers, delivers profits to retailers whilst minimizing risks. It makes using Drop Shipping suppliers very attractive especially for small business and home based online businesses.
It’s then very easy to run an online business without any investment on buying products and keeping them in warehouses or stores. In this way, retailers can establish new business with the minimum risk of loss and also without the risk of stock not selling or not moving.
Start your own online business today and select from the thousands of drop shipping suppliers that are included with all of our ecommerce packages. Over 1.5 Million Products to choose from, that you can sell! Australian Drop Shipping Suppliers, International Drop Shipping Suppliers, Australian Wholesalers and International Wholesale Suppliers all at your fingertips and all ready to provide you with their free dropshipping services and quality brand name products.
Visit our website to get started today – www.socialstoresonline.com.au/prices