An Awesome Start-Up Business!

6 Sep 2016 2:30 PMHannah Mitchell An Awesome Start-Up Business!

Drop shipping is a low cost, hassle free, great start up business, especially for first timers wanting to jump into the big business world! With minimal start-up costs, time and energy literally anyone can do it. No skills are required. So what is this awesome idea and how do you do it?

What is Drop Shipping?

Ok so, drop shipping involves 3 people; supplier who stores the products; retailer (you) who markets and sells the products; then the consumer who buys the products. Drop shipping is very similar to the traditional retail seller however there is one huge difference and it’s the best advantage… Rather than the supplier shipping the goods to the retailer (and the retailer having to pack and ship to the customer), the supplier packs and DIRECTLY ships to the customer! So there are NO package and handling requirements for the retailer.

How Does Drop Shipping Work with My Website?

So first things first, once you have located your suppliers and products you need an ecommerce website to display them and allow consumers to purchase through there. Once all the setup has been complete the rest of the ride is easy >> Your Customer orders online via your website choosing the items they want and then proceeding to check out and placing the order. An invoice/receipt is emailed to the customer and a purchase order is sent to the supplier. The supplier then packs the order and ships it directly to the customer. How AWESOME is that! Your main job after initial set up is to market the website.

Are there any Downsides to Drop Shipping?

Of course, like there are with any business. The main problems that could arise are; it can be hard to find suppliers that drop ship; the supplier most likely has many retailers and with that the inventory of product can change daily; returns and refunds can be more complicated as they have to be sent back to the supplier; drop shipping retail prices are competitive with retailers having low margins to coincide with their low out-of-pocket costs.

If you weigh up the pros and cons of this start-up business model you will see that the pros definitely outweigh the cons. So I hope this blog has sparked a wonderful genius business idea within you and success quickly follows. Check out a couple of our recent ecommerce projects I Still Call Australia Home & Your Party Pal. If you have any questions at all about this topic, please leave us a comment below and the Inology team will be happy to help answer your query.