Drop Shipping - the Advantages and Disadvantages of Using This Service

By Lila J. Fowloer

Drop shipping is a service provided by sellers to customers who purchase products online. Once a customer buys a particular product the seller simply pays the appropriate amount to the drop shipping company for the item, which should be shipped directly to the customer.

This may sound very interesting to sellers because using drop shipping service gives them a lot of advantages.

A seller who wants to make money on eBay will find the services of these shipping companies very beneficial because it saves them money which is usually spent on inventories. These costs could include storage, packing, documentation etc. By paying the drop shipping company to do all of this the seller is free from any kind of problems he might face and he enters the market spending much less money.
However, there are downsides to everything. Before moving into drop shipping one must consider doing some investigation on it.

At times shipping companies do not have a particular product but they show that item being available in their inventory. The bad part is when a sale is made and then the seller and the customer gets a back order notice from the shipping company. This has a negative effect on the seller because it can lead to a bad reputation and loss of money. Buyers expect on having their product once they pay for it.

Another problem could be finding a good drop shipping company who can provide the right products and services. There may be chance of the customer getting the wrong product or late delivery of the product. The product may also not turn out to be of good quality as showed and displayed on the net. Whatever the reason may be, this may also lead to loss of sales.

It is also important that you read and understand a drop shipping company's policies. The policies that you should know about are, in case of lost or damaged products who is responsible? How will this problem be handled? Will the buyer get a refund? Etc.

So before picking a drop shipping company it is best to do a little bit of research on them to find out which will provide the best services for long term business use.

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