Dropshipping is a business model that allows entrepreneurs to start an online business and sell products to their buyers without ever actually stocking the items themselves.

For many years businesses have used drop shipping as a means to move merchandise to customers. It has become very popular especially with small businesses. It is one of the tools that business uses to enlarge the staff and to enhance the service. It also saves overhead expenses it saves gas and it saves time.

It just makes good sense if you are selling online, and especially if you are the only one in your business, to use a drop shipper. When you use a drop shipper you have a larger inventory to offer your customers. Most companies do not have large warehouses to store merchandise even more so most companies cannot afford to rent or own a large storage facility.

Many companies operate from one room in the home and use drop shipping to extend the company facilities. It is a very simple process if you want to use a drop shipper to help you move your merchandise. Some businesses have become a success because they have used drop shipping to enhance their business.

When you are using drop shipping as a means to move your merchandise or to send orders you really don’t have to leave your home. All can be done from your computer or even a mail-order catalogue. Most homes today have computers and use them to sell merchandise online.

All you have to do is send the wholesale cost of the merchandise to your drop shipper and the name and address of your customer and the drop shipping company will send your merchandise right to your customer’s door. This saves you a lot of time because you don’t have to address labels you don’t have to wrap packages and then go to the post office. You may stay at home and do all of this from your desk.

It is much more convenient to dropship when you are getting your merchandise from the same company that is doing the drop shipping. Check with your drop shipper and become very familiar with the rules and regulations of the company. In many instances, you can save money if you order larger quantities of goods from the company.

This sometimes depends on whether you are dropshipping retail or whether you are dropshipping wholesale. There are many companies that sell both retail and wholesale and will drop ship for both. Perhaps the most important thing you need to know before you start dropshipping is the policies of the company.

The company policies will let you know what you can do and what you can not do. One thing you need to consider is what you will do with the merchandise if it is returned. Some drop ship companies will not allow you to return merchandise. Some companies who offer to do drop shipping will sell return merchandise locally.

Don’t forget to check out the drop shipper’s reputation; in addition find out how long the company has been in business. When a company has been in business for a while you will know it by the way it does business. If you are in doubt about a company you are considering you can check with the Better Business Bureau.

A great example of an online retailing store is: olidirect.com

1. How to use Dropshipping effectively?
2. Who uses the Dropshipping service?
3. How to become the most profitable Drop shipper?
4. How Dropshipping Helps a business to make money?
5. What to do after starting to drop ship?

By Anshjeet Singh