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DROP SHIPPING

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					DROP SHIPPING


  DAVE ROCK
 Presentation covers:


 Description of the Drop Shipping Model.

 The advantages and disadvantages of Drop
Shipping.
 Examples of companies that use Drop
Shipping.
There are three basic fulfillment
models:

 Inventory Model

 The Fulfillment Model

 The Drop Shipping Model
Inventory Model:-

 The retailer buys the inventory and
store it in his storage area, and ships it to
the customer on request.
Fulfillment Model:-

The retailer buys the inventory and stores it
 in third party’s warehouse.

 That third party, perhaps the wholesaler also
does the shipping.
The Drop Shipping Model:-


• The wholesaler or retailer has the inventory.

• The retailer merely sells the products.

• The order is then sent to the wholesaler or
  retailer who does the shipping.
Setting up a Drop Shipping business

 Select the product(s) to be sold.

 Find a genuine drop shipper for your
products.

 Investigate the different ways of selling
on line.
Setting up a Drop Shipping business con’t


 Contact the selected drop shipper and
enter an agreement with them.

 Commence selling using the selected
method and e-mail all orders to your drop
shipper for processing.
How it works:-
 A customer visits Retailer A web site and
orders 2 Sound Blaster speakers for $75.00
each.

 The customer is billed $150.00 plus $15.00
for shipping and handling.
How it works con’t:-

 Retailer A e-mail drop shipper the
customer’s order and shipping information.

 The Drop shipper processes the
information, puts Retailer A shipping label on
the package, and mails it to the customer
Advantages

The retailer save the cost of inventory
storage.
The retailer save the cost of shipping.

There is inventory flexibility.

No inventory, means no unsold stock.
Disadvantages
 Low Profit margins.
 Little control over the warehousing and
shipping aspect.

Finding a trust worthy drop shipper.

Web experience.

Web sites are expenses to create and
maintain.
Companies that use the
Drop Shipping Model

 eBay website - dropshipwholesale.net

 Wholesale Drop Shippers –
gowholeshippers.com
THE END

				
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posted:11/30/2009
language:English
pages:14