Drop Shipping Explained!
What is Drop Shipping?
Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer. As in all retail businesses, the retailers make their profit on the difference between the wholesale and retail price.
Procedure for Drop Shipping
Some drop shipping retailers may keep "show" items on display in stores, so that customers can inspect an item similar to those that they can purchase. Other retailers may provide only a catalogue or website.
Retailers that drop ship merchandise from wholesalers may take measures to hide this fact to avoid any stigma, or to keep the wholesale source from becoming widely known. This can be effected by "blind shipping" (shipping merchandise without a return address), or "private label shipping" (having merchandise shipped from the wholesaler with a return address customized to the retailer). A customized packing slip may also be included by the wholesaler, indicating the retailer's company name, logo, and/or contact information.
Drop shipping can occur when a small retailer who typically sells in small quantities to the general public receives a single large order for a product. Rather than route the shipment through the retail store, the retailer may arrange for the goods to be shipped directly to the customer. Drop shipping is also very common with big ticket items like steel buildings where the retailer will take a deposit and have the building shipped direct to the buyer's building site from the supplier's manufacturing facility.
Many sellers using online auction sites, such as eBay, also drop ship. Often, a seller will list an item as new and ship the item directly from the wholesaler to the highest bidder. The seller profits from the difference between the winning bid and the wholesale price, minus any selling and merchant fees from the auction site. A seller is permitted to list items that are currently not in his/her own possession, provided that he/she follows eBay's policy on pre-sale items.
A new emerging trend in the drop ship business is private label drop shipping, in which a manufacturer produces a custom item for a retailer and drop ships it. The range of private label drop shipped items varies from simple key chains and t-shirts with custom logos or pictures to customized formulations for vitamins and nutritional supplements.
Benefits of Drop Shipping
Two main benefits of drop shipping are - no upfront inventory to purchase and a positive cash flow cycle. A positive cash flow cycle occurs because the seller is paid when the purchase is made. The seller usually pays the wholesaler using a pre-payment or credit terms system. Therefore, there is a period of time in which the seller has the customer's money.
Other Benefits of Drop Shipping include:
What do I get from a Drop shipping account with MMM
By Registering a drop shipping account with Magickal Myths & Metaphors today you will open up your world into wholesale products, which include Major Brands such As Nemesis Now, Legends of Avalon, Alchemy Gothic, UL13 Alchemy, Alchemy Empire and more.
You will have taken the first step to running your own business.
As an MMM drop shipping member, whenever you log into your account, the prices on site will update to reflect the drop shipping prices which will be up to 60% off of the prices currently showing on the site. Members will also get access to a knowledge base for Marketing and SEO from which Professional IT and SEO Experts will discuss the latest marketing methods and assist you on how to effectively market your business using the latest techniques, skills and programs available to date for effective marketing.
Learn from the best as all our marketing experts were taught by major Multi million pound online companies such as Hacker secure. The Fulfilment house and more... So feel safe in the knowledge you are learning from the leading minds in online marketing.
We will help you be successful!
Summary of benefits of a MMM Drop shipping account
What makes us different from other Dropshippers?
Unlike other dropshipping companies, we don't have any hidden costs, the price you see is the price you pay. Most online dropshipping companies offer low prices, but then add on lots of additional costs during the checkout stage to include things like VAT and fulfilment fees.
WE PROMISE NEVER TO DO THIS! All of our additional costs for fulfilment etc. are built into the price already, so the price you see is the price you get. We won't surprise you with additional costs for things like VAT and Fulfilment Fees like most dropshipping companies do!
This makes it easier to work out your profit margins which our R.R.P guidelines will assist you with also.
How do I become a MMM Drop shipping member
Join today by registering for a drop shipping account for only £34.99 per year!
For the price of selling one or two items, we give you access to our wholesale database giving you the opportunity to have a successful business along with experts in the field to assist you along the way.
To register for an account, simply read the terms and conditions below and then click on the PayPal subscribe button. Once your subscription is confirmed. We will then update your access so that every time you log in, you will only see the Drop shipping prices and not the store pricing. You may register beforehand or we can set you up an account for you.
To get started today, subscribe using the PayPal subscribe button below then we will contact you shortly after to inform you that your account has been updated.
As soon as your account is updated, anytime you log into the site using your account login details, all prices will change to reflect the trade/ drop ship pricing.
Access Trade and Drop Shipping prices Today!
By clicking on the subscribe button below you are confirming you have read the Terms & Conditions.
For all Trade/ Drop shipping/ Wholesale enquiries, if further information is required on this service, please do not hesitate to contact us for more information.