Drop Shipping Company

Written by Kathleen Gagne
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Find a Drop Shipping Company

Since the advent of computer shopping, thousands of vendors have turned to a drop shipping company to handle the process of shipping of products directly to their customers. The advantages of drop shipping to an Internet business cannot be overstated, and finding the right company to perform that service is critical. Let's talk about how the drop shipping progress works.

Internet vendors create a line of products to sell and then develop a website that will, hopefully, be visited frequently. The products are not necessarily manufactured by the vendor. In fact, in many cases, the vendor buys the products from a manufacturer. The one problem with buying the products they want to sell is the cost of the inventory and the expense of storing and insuring it. New businesses, especially, do not have the facilities or the funding to support a warehouse full of goods.

Drop Ship Company Online

Instead of purchasing an inventory, the Internet vendor will most likely contract with a company that agrees to ship individual orders directly to the vendor's customers. Unfortunately, most manufacturers don't want to be left with all the expense and risk that that entails and may elect to service only vendors that place large orders. So, where does a new vendor get the goods he sells?

There are companies online that have arrangements with a network of manufacturers. The network allows the vendor to offer an extensive line of products and provides the manufacturers with a substantial pool of customers, the vendors. This is a win-win situation. The end result is great prices for the consumer and healthy profits for the manufacturers, the drop shipping company, and the vendors.


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