Facts about Drop Shipping Companies

Drop shipping is a sort of business where wholesale companies take orders from retailers and then deliver the items to the retailer's buyers. The items usually come from warehouses owned by drop shipping companies.
On the part of the buyer, he has no clue that the item/s that he had just bought actually came from another source and not directly from the retailer who sold him the products.

How drop shipping works
The retailer will promote some products. Most of the time, the advertisements are done through online shops. When someone buys an item, the retailer will take the order and collects payment.The retailer will then contact the supplier and relay his buyer's order. The retailer will pay the wholesale price and get to keep the difference from the retail price. The items will be forwarded by the drop shipper to its recipient. The package will have the name of the retailer as the sender.

The advantages of drop shipping.
It is apparent that drop shipping has many advantages. It is ideal for people who are looking for an easy home-based retailing business. Firstly, the mere fact that the seller only pays the supplier after the payment from the buyer has already been received means that cash flow is certain.

Also, the seller is not required to buy the items in bulk and then store them in a warehouse or storage facility. Additionally, keeping inventories is not necessary anymore, and this will save you big amounts of time and money, right?

Nevertheless, drop shipping companies give you the chance to test out various markets without risk at all. And by allowing the drop shipper to handle everything from product management up to the delivery of items, you have lots of time to concentrate on other aspects of the business like market research and promotion.