Dropshipping is the sale of goods that are already in the United States and can be resold at a higher price through Amazon.
The sales process looks like this:
- the seller finds the product from the manufacturer and lists it on Amazon, making his own markup;
- the buyer orders the product;
- the seller receives money and confirmation is sent to the client, after which the seller buys the product from the manufacturer, giving the shipping address specified by the buyer;
- the manufacturer sends the product to the buyer.
Thus, the buyer gets the desired product, the manufacturer gets his price, and you get a margin.
Benefits of dropshipping:
- Low start-up capital. To start sales, $100 will be enough for you.
- The goods do not need to be purchased in advance and stored in the warehouse.
Disadvantages of dropshipping:
- Low markup. Only with a low margin will you be able to compete.
- You cannot assess the quality of the products you sell blindly. It is also impossible to control delivery times.
- Violation of the stated conditions will result in negative reviews that will pour into your account. A damaged reputation is hard to overcome and will keep you from adding clients.
- The strategy involves laying out a huge range of products at the same time - thousands of items to make money. Selling successfully requires thousands of unique product descriptions with photographs.
- You must conduct all negotiations on a daily basis (customer-seller, seller-manufacturer), which will require knowledge of English.
- Difficult to delegate business.
- Manufactures do not want to be a link in the chain, when they can supply this product directly to the retail buyer.
- The risk is great.
Please, contact DiFFreight, we offer quality logistics solutions, warehousing services, organisation of goods delivery from Ukraine to USA and support at every stage of your trading activities.
Valid:
