Using a drop shipper is a smart way to make easy money in an online supplies business. A legitimate supplier will help you send your products directly to your customers under your labels and invoices. You are spared the hassles of buying and storing products upfront. You also save on labor and time as there is no packing or shipping involved.
While using a drop shipping service is an extremely convenient way to deal with various aspects related to an online supplies business, it is crucial to find a legitimate drop shipping company to help you succeed in your endeavor. It is common to find businesses turning to middlemen for help in finding the right suppliers.
There are, however, a few problems in dealing with middlemen or agents, as they are called. For linking you up to a drop shipper, they will charge you monthly or annual fees. Even after you pay up, you are not guaranteed that the drop shippers list provided is legitimate or reliable. Agents will offer the same list of companies to anyone who approaches them, thus intensifying competition for you and others.
Managing your online business through a drop shipper, though convenient, has serious disadvantages in terms of wafer-thin margins. The money that you are supposed to pay your agent will take away a good portion of your earnings, exposing you to greater risks of loss.
You can easily have direct access to drop shippers through business and wholesale forums and online drop shippers directories. The members and services listed on such sites are scrutinized for performance and legitimacy. The one-time or annual fee that you have to pay to these sites for membership is much less than what you end up paying to your agent annually.
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