Dropshipping is quite possibly the single biggest factor in the growth of self-employed business owners. Thanks to the dropshipping model, anyone can now sell a variety of products and:
- Never buy product in advance
- Never warehouse the products themselves
- Never pack & ship their orders
How It Works
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The 1st step is to select items you would like to sell.
Let's assume you pick our ladies leather jackets.
For Demonstartion purposes, lets say that your cost on the coat through our Leather Warehouse was: $30.00 + S/H
You list the jacket for sale on your web site, an online auction, through a sales flyer, etc. at the price you chose.
For Demo, Let's Assume you sell the item for: $39.95 + S/H
Your customer purchases the item from you and pays you the $39.95 + S/H. Once you have their payment, you have the order "Dropshipped".
The $9.95 difference between your cost and your sale price is your Gross Profit.
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Placing Your Dropship Order
To Place an order you will need:- Customer Name & Address
- Product(s) Being ordered
- Shipping method being used
- Your Billing Address
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The billing address you list here must match the address on file with your credit card company or PayPal account. (It should be the address where you receive your statements.)
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That is all there is to the actual act of dropshipping.
Dropshipping FAQ
1.) Is My Name put on the return address as the sender?
No. The name on the return Label is "Customer Service Center". This allows us to maintain a uniform shipping method. It also allows you to offer dropshipping services to your customers, and them to theirs, and so on.
2.) Do you include an invoice with the shipment?
No. A packing list will be included that shows the item and quantity shipped. There are no other identifying characteristics that would reveal the source of the shipment on the packing slip, the product or the box it ships in. View A Sample Packing Slip HERE.
3.) How does my customer return an item?
When a customer needs to return something, they will contact you. In turn, you will visit the warehouse where the item was purchased and fill out a return request form on your customer's behalf. The warehouse will then provide you with the applicable return information and you will forward that information to your customer. At no time do we interact directly with your customer, it is all done through you.
4.) What if you run out of a product I need to order?
This is ultimately the one major flaw with the dropshipping model. The only way to insure a product is going to be available when you need to place an order is if you have the item directly on hand.
There is always the possibility that an item will not be available when you need to make your purchase. If you need an item that is out of stock, please email us so we can see if we can provide you with a restocking date from the warehouse.
SALES TIP: If you use dropshipping as your primary business model, we recommend adding a statement that helps to shield you from the downside of having items unavailable.
For Example:- "At the time of this listing, this product was in stock and ready to ship. Because our Distribution Center offers this item in other mediums, there is a remote possibility that the item may be unavailable due to large purchases, inventory errors, payment delays or acts of God. In this event, one of our customer service representatives will contact you with: an expected reshipment date, an agreeable replacement offer or a full refund. Customer Satisfaction is a top priority to us and all efforts are made to insure a smooth transaction for your purchasing needs."
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