Authorization


Registration   Forgot password?
Vendors
Webmasters
Offline Shops

Dropshipping: direct profit from direct deliveries

Possibilities that are available for anybody

Dropshipping - A unique way of bartering through the use of intermediaries

There are many large manufacturers who, for various reasons, do not feel the need to distribute their own product. This has led to the realization of dropshipping, where the product is purchased by an offshoot business directly from the manufacturer, but not before it is paid for by the initial buyer. In this way, the merchandise is being delivered straight from the manufacturer's warehouse, bypassing several links in the traditional chain of supply and demand. The customer happily receives his product at an attractive price; the manufacturer gets a guaranteed sale, and the middleman - a profitable business.

The pros of a business without initial investments

If you still haven't heard about a business that does not require any investments, you'll hear about it now. Since you are delivering merchandise that has already been paid for, dropshipping does not involve any initial monetary infusion. In addition, things like transportation, packing, and storage are covered as well.
Finding help for a tiny e-store is no easy task. After all, you can't go out and hire 0.1 workers to pack one or two products a day:Thankfully, the payment for these services (performed by state-tested workers) is included in the manufacturer's price.
Still, the most surprising part about dropshipping is the positive effect it's going to have on your bank account from the very beginning. It's a known fact that matter (especially money), cannot appear from nothing. Committing to this business, however, will quickly convince you of the opposite. It turns out; virtual money can be transformed into very real financial gain. So, how does this happen?
Credits are not needed!

Simple arithmetic relating to a positive balance

Paying for merchandise using a credit card creates a temporary paradox: "real" money is already transferred to the vendor's account after three days, while the due date for paying the manufacturer is still a month away, with the actual transfer of funds occurring two weeks after that. All in all, the money stays in your account for 44 days.
So let's count: you sold a given piece of merchandise for $50 while purchasing it for $40. Initially, your funds decreased by $40 and three days later you were reimbursed for $50 ($10 is what you actually made, but the $40 will stay in your account as well until you pay the manufacturer).
Through everyday sales, your account will exponentially grow right up until you pay the manufacturer. In other words, if during this period of time you daily sold one of that particular item your account will gain $50*44=$2050, from which $270 is what you actually made, while the $1780 is the unique dropshipping bonus.
Of course, the described system is completely relative. The income may periodically be taken out in several different ways (for example, you can take out your $10 daily or patiently wait until the end of the month). Still, even with constant withdrawal, the dropshipper always has some sum of money on his account. Right before paying the manufacturer, for instance, the money is almost ten times his actual earnings, while on average being half of the maximum possible sum.
Now, let's think about how small the volume of our example was and use some different numbers: amazing, the more you sell, the more money is deposited into your bank account! While your cut is not too shabby in itself, it's absolutely wonderful to note that all the money on your account may be freely used up until the payment date.

Dropshipping, merchandise, and the volume of clientele

Let's talk about sales: A dropshipper loses a lot less clients then an owner of a regular store - and here's why. The modern shopper is spoiled: if he hasn't found everything he wanted in a given store, he won't be satisfied.
A dropshipper is not confined by investments and never finds himself in a situation where to buy new product, he has to sell the existing merchandize. Having access to a huge assortment of wares, he is able to spoil his customers, ensuring they come back again and again.
God of trade got a new instrument

Dropshipping and e-commerce: the new is the forgotten old

It's hard to call dropshipping an innovation of the XXI century. The system is quite old and has been used for years by auto-service centers. However, the real blossoming of the dropshipping system is directly related to the continuous evolution of the World Wide Web. And since the buyer hasn't changed, he still wants to see the merchandise.
Now, it's easier than ever before. Having just one piece of a given product, it can be shown to thousands of potential buyers in a matter of seconds.

The narrow spaces and wide perspectives of dropshipping

So, doesn't the above sound too good to be true, ready to be spoiled by a single, evil twist? I'm sure the perceptive reader has already asked himself: Doesn't the dropshipper rely on the manufacturer a bit too much? Yes, that is absolutely correct: this is the main fault of direct delivery. A negligent and immoral supplier has the potential to ruin the dropshipper's reputation.
Well, nobody is insured from human nature - especially in sales. Still, leaning on the modern possibilities of e-commerce, dropshipping keeps growing and growing and growing. What can be more convincing than that?
Contact Us Legal and Policies Sitemap
© XMLShop.com 2004 – 2017