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Using Dropship to Buy and Sell Electronics and Other Products
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Added: 06/25/2007
Type: Summary
Viewed: 79 time(s)
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Using Dropship to Buy and Sell Electronics and Other Products
As consumers, the Internet has given us unprecedented opportunities to shop for virtually all types of products from the comfort of our homes. Whether we're in the market for electronics or a new computer, jewelry or a handbag, or household items or toys, it only takes a few clicks of our mouse to find what we need. At the same time, one of the challenges of shopping online is the timeliness with which our orders are fulfilled.
The supply chain of online stores is such that they often stock inventory on an "as needed" basis. That means that if you order a radar detector, for example, the online store may not have it in stock. The store may have to wait for their radar detector supplier to ship it to the seller, who in turn must ship it to you. That can mean delays ranging from several days to several weeks.
Some online merchants, however, use what is called dropship. This means that when you place your order, it goes directly to the manufacturer or supplier. The manufacturer or supplier, in turn, ships the product directly to you. So if you ordered both electronics and toys from the same online merchant, for example, you would get two shipments: one from the electronics supplier and one from the toy manufacturer. One advantage of dropship is that it bypasses the middleman (the online merchant) and cuts down the time your order reaches your doorstep. Another advantage of dropship is that your order won't be held up by a backorder. In the example used above, your electronics will be shipped to you even though your toys may not be immediately available.
If you are an online merchant, dropship also offers a number of advantages. First, and most importantly, you don't have to stock inventory. This means that you don't have to rent space to store inventory, that you don't have to track inventory, and that you don't have to deal with the time and hassle of setting up a shipping department and shipping merchandise to your customers.
Dropship also allows you to sell a wide variety of products. Because you don't have to stock merchandise, and instead can rely upon suppliers and manufacturers to do order fulfillment for you, your online store can carry everything from jewelry and handbags to computers and household items. You'll never have to worry about how much of any particular item you need to order, and you'll never have to deal with excess inventory. Reliable dropshippers will fulfill your customers' orders quickly and efficiently, thus enhancing your reputation as an online seller.
Because online merchants who dropship don't have the overhead expenses incurred by merchants that carry inventory, they can pass along the costs savings to their customers. As a result, customers can get terrific bargains, often buying electronics and other items at near-wholesale prices.
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