Chinavasion | China Gadgets BlogWholesale Electronics and the Gadget Business

Jeremy was on the horns of a dilemma. His part-time eBay business, trading car DVD players and audio visual equipment, had been going so well that the flat he shared with four others was filling up fast with merchandise, yet he still couldn’t afford hiring a storage facility.

Jeremy obviously hadn’t heard of dropshipping and how easy it was to drop ship.

E-commerce, has become a multi-billion dollar business in a little over 10 years. EBay hosted 556 listings in the third quarter of last year with a number of other online auction houses also popping up.

While many of the people trading on eBay store their own stock themselves the community of drop shippers, and of people using drop ship companies, is growing so fast that there are number of drop ship forums dedicated to the topic.

There are literally thousands of drop shipping companies online, helping people get items from the supplier to the persons customer. The quality of service can range from excellent to fraudulent so there are still some things everybody should know about the dropship business.

Some of these things include:

• What is dropshipping?
• Why isn’t eBay a good source for dropship companies?
• Can I automate the dropshipping process?

What is drop shipping?

Drop shipping is when the retailer doesn’t keep items in-stock but instead gives the customer’s listing to a wholesaler, or another party, who then fill the order and send it to the customer.

By managing your supply chain through dropshipping you will free up storage space and start to operate a cash positive business. As a customer has already purchased the item when the order is put through to your supplier there will be no risk of you paying for, and storing, a product that won’t sell.

There are various types of drop shipper including wholesale companies and dropship specialists, focused only on getting product from the company to your customer.

Good drop ship distributors should offer a private label or blind shipping service to make sure your customers stay loyal to you.

To guarantee you keep your customers most drop shipping companies offer a private label service or a blind shipping service. blind dropshipping is when the box is sent to your customer with none of the wholesaler’s logos on them while a private label dropship service is when you send the company your documentation and they include it with packages.

However, as dropshipping is relatively new, many companies offering the service could potentially be insolvent, fraudulent or not offer you the best service.

Is eBay a good source for drop shipping companies?

Anybody who has spent any time on eBay is likely to have seen many lists of drop ship businesses and drop ship websites up for grabs and may have wondered if they are worth purchasing.

Unfortunately, these lists are often filled with dead sites and scam artists not really interested in providing a great service. A look over the internet will often turn up better results.

Searching for drop ship companies listed on a document purchased from eBay may look like this, you’re better to go through reliable drop ship wholesalers

One of the better options, when considering the dropship option when managing your supply chain, is to approach wholesalers or factory agents directly or use a wholesale dropship company. They usually keep up to date more regularly and are more reliable at sending out products.

Automate your dropshipping experience

If you have found a good product and a good wholesale dropshipper or a reliable drop shipper you may find your online business has grown to the point where transferring customer details from your online store, or auction site, to your drop shipping provider take up most of your time. You may need to look into establishing an automated drop shipping process so customer details will go straight to the dropshipping company without your help.

To do this you will first need to set up a shopping cart that will notify the drop ship website automatically when a customer has placed an order and pass on all the customer’s details in a format suitable for the drop shipper to fill out the forms necessary to start the shipment.

As most ecommerce sites are likely to already have a shopping cart in place already you will need to check to see how they can be adjusted so orders are transferred immediately to the dropship business that stocks the products, along with the necessary payment.

Once this is done you will find you have more time to spend on other matters like marketing and procurement.

Items like this HDD Media drive, luxury LCD screen and home projector have a great re-sale value but can take up a lot of space.

So, with a little bit of planning Jeremy could find a Chinese dropshipper, or electronics drop ship service to send customers the car DVD players directly, keeping both his flatmates and customers happy while avoiding getting a warehouse.

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