Where do I hold inventory for an online business?
If you are drop shipping, you don't hold any inventory.Most companies that "specialize" in drop shipping are rippoffs. They have so many sellers who sell for the same price, you usually cannot make back your listing and advertising costs.The best way to get a good drop shipper, is go to manufacturers and offer to sell their products and work out a fair agreement with them. They use used to selling in quantities, so expect them to charge you more since they have to package the item individually and ship it to your customer.You offer them something good though, they get paid cash (money order or cashier's check), in advance, the full cost plus shipping.You provide them with a shipping label, all they have to do is slap it on and add the postage and ship it.You sell their products for them, when a customer orders it, you collect payment, send the manufacturer the payment, and the shipping label.There is absolutely NO risk to them. They make more sales, period.You don't have to carry an inventory.The question is, can you beat out XXX Mart who buys them by the thousands?Probably not, so you have to find products that are not generally available in stores.
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