A drop shipping company offers products to resellers and ships them directly to the customer. Free drop shipping companies do not charge resellers a fee but they do charge the customer shipping fees. Drop ship companies provide wholesale products, the reseller may sell at the wholesale price or increase the cost to the customer.
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The variety of drop ship companies is as varied as the types of products manufactured. There are drop ship companies that represent several manufacturers offering you, the reseller, the opportunity to provide an unlimited selection to customers. Products include designer handbags, electronics, clothing, fragrances, jewellery, games, computers, telephones and accessories. This is a short list of products available for drop shipping.
There are several benefits to becoming a reseller for wholesale manufacturers. As a reseller you do not have to keep an inventory, develop a presence on auction sites or build your own shopping site. Customers click and buy, the merchandise is shipped from the manufacturer to the customer. No overhead costs for warehouse space, shipping supplies or costs, leftover seasonal inventory and you can provide a variety of products to your customers.
Research the drop shipping company, read the fine print. Though they do not charge you a direct fee, some companies may have hidden expenses. Some manufacturers are slow in paying resellers, slow in shipping, offer defective products, do not honour return policies and have a poor reputation.
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