Drop shipping business is new model of retail business in which one does not need to keep stock of items he wants to sell. In traditional way of retail business one is supposed to purchase items, stock them in warehouse and keep few to display at outlet but in dropshipping no purchasing is needed. All dropshipper needs to do is just take orders from customers and make payment to wholesaler or manufacturer, the parcel is dispatched directly to customer and merchant don’t even need to touch the product. This style of business has many merits and is easy to manage. Even a single person can handle big volume of sales without any staff. Dropshipper can have bigger variety and can add more products in his kitty, he can work by having a physically running showroom or even online, both ways it is highly profitable business.
Drop shipping business of herbal supplements is becoming popular due to few reasons. The herbal supplements are in demand these days. More and more people are becoming aware of benefits of herbs and they want to try natural ways of treatment in place of allopathy to save health from side effects. Increasing demand has urged manufacturers to increase reach in the market which is right now getting filled by dropshippers of herbal supplements. Drop shipping business of herbal supplements is easy to start and people from all walks of life can take up this work. For people working somewhere else or even housewives this is good way of earning money by drop shipping herbal supplements.
Even manufacturers work as dropshippers for their own products and products of other companies. Many manufacturers along with their products add other products of other companies to make their product list complete and dropship herbal products. Herbal supplement manufacturers having expertise in certain category of supplements add products of other companies from other categories which are popular and generate easy sales to make their list complete. Popular products attract customers and dropshipper gets a chance to push other products as well easily.
How Does Drop Shipping Work?
Dropshipping works on simple philosophy, I share your work and you share your profit with me. It can be explained in detail in this manner. For a manufacturer there are two most important and time and money consuming jobs, first, to get product ready and second, to market it. In drop shipping business the latter part is taken care of by dropshipper who approaches possible customers and get orders, this can be done online by listing the product over website or at e-commerce sites and portals. Even retailers having physically running showroom or shops can also dropship herbal products.
Dropshipper needs to market the product online to make people aware about herbal supplements and their benefits. This is done by making website popular over search engines and creating webpages and using social networking sites. Awareness brings curious customers over site or page which are to be convinced for buying herbal supplements. Once a customer has placed his order dropshipper passes this order to wholesaler or manufacturer who dispatches ordered quantity directly to customer. Dropshipper quotes price of product to customer after adding his profit margin over the rate given to him by manufacturer. All a dropshipper needs to worry about is getting orders and payment from customer, rest of the remaining work is done by manufacturer or wholesaler.
Ease of working makes dropshipping a profitable and popular business, the level of dropshipper can be as low as one person working online at his home, to companies having manufacturing unit of their own and also drop shipping products of other manufacturers. From big companies to single person all can work in this style of business and earn profits.
There are many reasons to consider dropshipping. Few popular ones are listed below.
Less capital and low risk – If you are working as online dropshipper capital needed to start the business in very low. If you want to sell your own herbal supplements and of other companies even then by adding other products you get a varied product list at less cost. Variety of products makes earning profits easy and minimizes chances of failures. For online dropshippers the risk involved is almost zero which makes it a good option to earn money.
Ease of working and less overheads – There are minimum overheads if you are working as online dropshipper. You do not need to buy and stock inventory and worry about dispatching. All you are supposed to do is get orders and pass it along. You can work at suitable timings from your home or any place. You can even change your location, city and still continue working.
Scalability – You can scale-up and down as and when you want to. Even if you are manufacturer you can add or remove products of other manufacturers if they are not profitable. You can add products which increase range of products and improve sales of slow moving products as well to increase your profits.