| This is the age of the Internet entrepreneurs. You see | | | | thing for the new business owners to do is signup for |
| millions and millions flock to the Internet each day. They | | | | the dropshipping and let the pros take care of the |
| easily understand the business potential and the low | | | | delivery. Once they understand how things are done |
| bar in starting a business website. They jump directly | | | | they can increase their revenue by starting to manage |
| without much thought or research, contact one or two | | | | inventory in addition to signing up for drop shipping. |
| product sellers and open shop as resellers of the | | | | Slowly you can finally manage to become a complete |
| items. A very few succeed owing their success to | | | | distributor or may be become a value added reseller. |
| previous experience or contacts they have. Many of | | | | Given the number of companies who competitively |
| them just fall into the bottomless pit of waiting for the | | | | price their product for reselling and the various drop |
| orders spending money on pointless traffic sources. | | | | shipping methods they offer, it get real confusing to the |
| Nearly half of them finally figure out a way to grab the | | | | new comer. The best thing they can do is purchase |
| attention of the customer and finally manage to entice | | | | the hot drop shippers or manufacturer directories and |
| them to buy their products. There in the problem starts. | | | | ping each or broadcast for quotes. It is easier this way |
| They now have to figure out the best way to ship the | | | | as it will fit the quick launching spirit they are in. Typically |
| item. Unprepared, they initially end up paying for the | | | | you get responses from 10-20% of the requests you |
| shipping and handling out of pocket for the first 10 | | | | send. This is more useful than the direct contacts you |
| orders. Tell me I am wrong, the author is a fine good | | | | make. Here is why you will get better deals when you |
| example of this. If only we could present articles like | | | | go through these directory purchases you make: |
| this to them before they blindly start their journey to | | | | 1. The product manufacturers know you are serious |
| the bottomless pit? | | | | and not just collecting emails. |
| The good concept that allows the home based | | | | 2. The product manufacturers advertise through these |
| entrepreneurs to try out various business methods | | | | directories and offer the directory for premium |
| without holding any inventory is called Drop Shipping. | | | | placement and since this brings a constant stream of |
| There are tons companies who offer drop shipping of | | | | sales websites they offer a better deal than what |
| their products. It is a win-win for them. In the reseller | | | | they would through other sources. |
| market the product manufacturer doesn't know who | | | | 3. Typically the pre-screening is done by the directories |
| the customer is. In drop shipping they get first hand | | | | themselves hence they spend less time spending time |
| information of who the customers are and also find | | | | to separate the wheat from the chaff. |
| good sales folks for free. The web business owner | | | | 4. Sometimes the initial consulting is offered by the |
| who signs up for the drop shipping also wins. If they | | | | directories hence they spend less time in finding best |
| are new to the business they don't have to worry | | | | match services. |
| about shipping and handling. They need not worry | | | | The above are typically translated into higher |
| about maintaining inventory. The established business | | | | commissions for the seller. There is just one caveat |
| owners know how difficult it is to manage inventory. | | | | beware of the multiple layer sale. 50% of the folks |
| The countless software and business intelligence | | | | who claim to drop ship are basically middlemen who |
| products in the Inventory management tell the story | | | | add one more layer of cost. Ask your directory |
| about the nightmarish Inventory management. The best | | | | supplier to do this chaff removal for you. |