Posts Tagged ‘Stock Inventory’

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 pounds plus five pounds shipping. You now turn around and fax (or e-mail or phone) your order to your dropship supplier. You pay the fifty pound wholesale product cost plus five pounds 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 pounds.

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 pounds plus shipping. Every time you sell that product yourself, you will have a sale of one hundred pounds. However, how many one hundred pound sales can you make personally?

Now consider the situation where you offer your dealers a wholesale price of fifty pounds. You could have hundreds or thousands of persons selling for you.

It is true that each product sale now only brings you only fifty pounds 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 pounds, he is really receiving a fifty pound profit for selling your product; you could view it as a sales commission. You receive only fifty pounds 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.

There’s no disputing that the Internet has enabled hundreds of thousands of people to launch their own home based business. And, with the economy on the brink of recession, more people than ever before are looking for ways to supplement their existing income, to recover from a job loss, or to hedge against uncertain times. An Internet home based business offers a multitude of benefits. You can make your own hours, so you can work while the kids are in school or after they’ve gone to bed at night. You can avoid the time wasted by a daily commute and don’t have to pour money into your gas tank going to and from work everyday. Best of all, you don’t have to answer to a boss, because you are the boss!

Because the amount of money consumers spend online is at an all-time high, one of the best businesses you can launch is an online shopping mall. While this seems counterintuitive – after all, where are you going to store all of the inventory? – many people are finding extraordinary success in selling online.

What’s the secret? It’s actually pretty simple. You just need to find a supplier who will give you access to products that you can sell online, and then who will do the shipping for you. In other words, you don’t have to stock inventory, you don’t have to deal with packaging and shipping; you just need to sell the products. Ideally, the company you partner with should have 200,000 or more products from which you can choose. When you have access to that kind of inventory, you can become an eBay power seller or a star Amazon trader in no time at all.

When you’re looking for a company with which to partner, find one that has at least three different plans. One might be an auction plan, with a one-time set up charge and no monthly fees. You should have access to low wholesale prices and all of the company’s products, with no minimum order.

Another option might be a website plan where you get your own website pre-loaded with all of the products, where you can customize your website, and where no merchant account is required. A third option might be a website and auction plan where you can have the best of both worlds, and where you get a free domain and a free email account.

Beyond the plan options, you should look for a company with no monthly fees, that offers free order fulfillment, and that will dropship every product you sell directly to your customer. In other words, you should be able to have a turnkey shopping mall that you can administer from home. All you need is a computer.

As for the types of products you sell, there are virtually no limits. The best partnering companies offer hundreds of thousands of products in categories like apparel, computers, electronics, health and beauty, home and garden, jewelry, toys and games, and so forth. Typically, an online shopping mall that offers a wide variety of products is more successful than one that offers a small selection.

Starting a home based business can be incredibly satisfying, as well as financially rewarding. The secret lies in partnering with the right company.