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Drop Shipping Basics

Lily O'Halloran

Drop shipping is a relatively new type of product sourcing that allows retailers to collect payment from the customer before purchasing the product. Drop shipping brings retailers obvious benefits. However, it is not a magic solution. In this article, we will take a look at the benefits of drop shipping, and determine if drop shipping is the right solution for your business.

Benefits of Drop Shipping

Drop shipping saves time, and let’s face it time is money. Drop shipping completely eliminates the need to store and manage inventory. Warehousing merchandise and managing inventory requires numerous stressful hours on a regular basis. Not only do you save time with product management, drop shipping enables you to free up time that would have been spent boxing, labeling, and shipping orders. Drop shipping requires less manpower than traditional retailing methods, thus cutting costs as well as saving time.

Drop shipping saves money and minimizes your financial risk. With drop shipping, you do not order the product until your customer pays you. Therefore, the cost of your merchandise does not come out of your pocket. Drop shipping allows you to sell name brand products of your choice, and enables you to start selling new products at any time. This practical method can be used to test products with minimal financial risk.

Not a Magical Solution

Although drop shipping is a practical solution, it is not a magical one. A common misconception about drop shipping is that you will reap huge profits for very little work. Drop shipping does save valuable time, but the time saved should be spent on building your business. Successful retailers use that time to study the market, research products, determine customer demands, advertise, expand, and streamline their business. While drop shipping does ease your workload in certain areas, you will still need to work hard to build, maintain, and expand your business.

All drop shippers are not equal; some, such as Drop Ship Access, are much better than others. Drop shipping services and fees vary widely between companies. Although some drop shippers are happy to work with anyone, many drop shippers have stiff requirements. Typical requirements may include steep fees, order minimums, non-refundable application fees, and higher than wholesale prices. Drop Ship Access enables members to pay as they go.

Drop Shipping Works

Drop shipping may not be a magical solution, but it is a brilliant one for many online retailers. Drop shipping enables anyone to become an entrepreneur by minimizing the funds necessary to start a business. The benefits of drop shipping for many online stores far outweigh the drawbacks. Drop shipping eliminates the need to store and manage inventory, locate product sources, buy shipping supplies, and drive to the post office to ship orders. A small portion of control is lost over package branding and product inventory, but that is a small price to pay for the overall ease that drop shipping brings to building a successful online business.

Drop Ship Access is an excellent dropshipping source for brand name products at wholesale prices. You can learn more at