DROP SHIPPING

1
DROP SHIPPING
DAVE ROCK
2
Presentation covers

• Description of the Drop Shipping Model.

• The advantages and disadvantages of Drop
  Shipping.

• Examples of companies that use Drop Shipping.

3
There are three basic fulfillment models

• Inventory Model

• The Fulfillment Model

• The Drop Shipping Model

4
Inventory Model-

• The retailer buys the inventory and store it in
  his storage area, and ships it to the customer on
  request.

5
Fulfillment Model-

• The retailer buys the inventory and stores it
• in third partys warehouse.

• That third party, perhaps the wholesaler also
  does the shipping.

6
The Drop Shipping Model-

• The wholesaler or retailer has the inventory.

• The retailer merely sells the products.

• The order is then sent to the wholesaler or
• retailer who does the shipping.

7
Setting up a Drop Shipping business

• Select the product(s) to be sold.

• Find a genuine drop shipper for your products.

• Investigate the different ways of selling on
  line.

8
Setting up a Drop Shipping business cont

• Contact the selected drop shipper and enter an
  agreement with them.

• Commence selling using the selected method and
  e-mail all orders to your drop shipper for
  processing.

9
How it works-

• A customer visits Retailer A web site and orders
  2 Sound Blaster speakers for 75.00 each.

• The customer is billed 150.00 plus 15.00 for
  shipping and handling.

10
How it works cont-

• Retailer A e-mail drop shipper the customers
  order and shipping information.

• The Drop shipper processes the information, puts
  Retailer A shipping label on the package, and
  mails it to the customer

11
Advantages

• The retailer save the cost of inventory storage.

• The retailer save the cost of shipping.

• There is inventory flexibility.

• No inventory, means no unsold stock.

12
Disadvantages

• Low Profit margins.

• Little control over the warehousing and
  shipping aspect.

• Finding a trust worthy drop shipper.

• Web experience.

• Web sites are expenses to create and maintain.

13
Companies that use the Drop Shipping Model

• eBay website - dropshipwholesale.net

• Wholesale Drop Shippers gowholeshippers.com

14
THE END