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  • A Drop-Shipping Business, What Is This?

    A Drop-Shipping Business, What Is This?

    This is how eCommerce defines drop shipping “Drop shipping is a fulfillment model that allows you to buy the products individually from a wholesaler and ship them directly to your customer”.

    Normally,

    you purchase large quantities of goods to resell so as to make price advantage, but in drop shipping you partner with the supplier and have a list of their goods.

     

    You advertise the good on a website and any other avenue you deem fit. When you have an order you forward this to the supplier to effect the order.

     

    The Merchandiser will ship directly to the customer from their warehouse and charge you for the shipment. Of course your commission will outstrip the shipping charge.

     

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    The best example of drop shipping business is eBay which is probably he oldest on line. However, drop shipping business had existed long before eBay, but they have the credit for bringing this business online.

     

    The biggest advantage of drop shipping business is that you do not have to design or manufacturer any product and so no fear of product failure.

     

    Again, you do not have to hold any inventory as you can do this business in your home even a corner in your room. All you need is a computer and a site and traffic or a catalogue.

     

    There are two ways to sell drop shipping goods. One is by printing a catalogue and now by having a site on the web.

     

    In this business, you only pay for goods after you have sold the good and not before selling them And because you do not hold an inventory, you do not need a warehouse.

     

    So what are the pitfalls of drop shipping business?

     

    Like all businesses, you have to research what market to be in. That you like a product does not mean others will like it. By researching the market to exploit, you will know what the demand for the product. You may like dog collars as they do in Europe, but will it gel in Nigeria?

     

    You must choose a supplier that is both reliable and dependable. Sloppy suppliers will sooner than later kill your business. If they are late on orders or supply inferior products, it is your integrity and reputation at stake not theirs. You must and should use suppliers with flawless reputations.

     

    Drop shipping business can work in Nigeria, and can work for you, but you must be prepared to work hard. But then, which business does not require hard work.

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    Otunba

    Otunba Jide omiyale

    Otunba Jide omiyale

    Chief Editor at Naija Biz Ideas
    I am Otunba Jide Omiyale. I run this site with other professionals,including Accountants, Lawyers, Commercial Bankers and Investment Bankers
    Otunba Jide omiyale

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2 comments

2 thoughts on “A Drop-Shipping Business, What Is This?”

  1. i would love to start a drop shipping business and will need a guide on how to start and which supplier to do business with

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