Roma, Italy -- (SBWire) -- 04/23/2010 -- Drop shipping is a supply chain management technique in which a product delivery method in which the seller accepts the payment for an order, but the customer receives the products directly from the manufacturer. So in this method, the retailer acts as an intermediary between the manufacturer and the customer. As in all retail businesses, the retailers make their profit on the difference between the wholesale and retail price.
One of the biggest advantage in this method is,it eliminates the need of storage and inventory management ,so we can also focus on marketing and development of the business. It requires low start-up costs. In traditional retail business we need to maintain our stocks of various items, but in this business model, we have only to provide a catalog or a link of our website to the client. so they can surf through online and view the available items in our "store". Due to this our cash outlay is greatly reduced and because our money is not held to our inventory, you can pull back our resources to improve our services.
We don't have to worry about unsold goods and update it on our book keeping inventory. Apart from saving money on inventory, we can also save money on packaging materials and also save in warehousing and other overhead costs. A lot of stress comes with distribution and its also been reduced. So we can worry less about customs duties, the paper work and other issue related to delivery of goods.
Points to ponder before having a deal with the drop shipper:
Choose a reputable drop shipping company.
Make sure that your clients get their products in time. We need to check on the drop shipper's credibility, like how long is drop shipper have been in the business.
Be careful while buying drop shipping list.
know their policies like shipping, back orders, returns and exchange of good... As well.
Even it has many advantages there are also few disadvantages like, we may not have control on the packaging of the products, shipment time, back orders, returns and exchanges and the quality of the products. If your customer complains, we have to take care of the issues and don't drop shipping and not be responsible for these issues.
Drop shipping is a profitable business in small scale, those who cannot afford to buy in bulk or afford a warehouse in which to store the products until they have been able to sell them on. Although small retail shoppers and those who are using mailing catalogs they are been more beneficial in drop shipping . So there is no question that huge volume of purchasers are also using drop shipping on internet based stores.
Tuklu Group of websites United States of America (http://www.tuklu.com) Australia (http://www.tukluaustralia.com) United Kingdom (http://www.tuklu.co.uk) Canada (http://www.tuklu.ca) New Zealand (http://www.tuklu.co.nz) India (http://www.tuklu.in) Ireland http://www.tukluireland.com
About Tuklu Europe S.r.l.
Tuklu Europe S.r.l. is an Italian based company which operates internationally. Their mission is to provide services for on-line merchants which may vary from online auctions to virtual stores and the sales of entire stocks of goods. Furthermore Tuklu offers special services for the trade of books, video-games, motors and display advertisement for Restaurants and Chefs. Tuklu co-operates with major online payment systems like PayPal, AlertPay and Moneybookers to offer secure money transactions. Tuklu's unique characteristics are an easy-to-use interface, liberal trade policies as well as very competitive rates when compared to the market standards
Drop Shipping Business
In this article we are going to discuss about, what is meant by drop shipping and what are the advantages and disadvantages of drop shipping business. At first we have to know, what is drop shipping business.