Use Drop
Shipping to Expand into New Markets
By
Stuart Lisonbee
For
retail
businesses, expanding into a new market can be a risky proposition.
Aside from additional marketing costs, there are also the costs of
storing new inventory that may or may not sell.
This
is just one
more situation where drop shipping can help save you time, money, and a
lot of unwanted stress. Just like drop shipping is a low risk way to
break into the retail business, it can also help your existing business
get its feet wet in new markets.
Let's
take a look
at an imaginary online retailer that sells camping equipment. For
years, this retailer has focused on specializing in tents and sleeping
bags only. Now, to increase sales and profits, he wants to expand into
more camping accessories such as cookware, backpacks, propane,
emergency equipment, and so forth. The problem is, he's worried that he
won't be able to... Read
More
Drop Ship
Tips: Minimizing Backorders
By Stuart Lisonbee
Backorders
can break the backs of online retailers. If you can't quickly deliver a
product to your customer, they might just cancel their order and look
for a more reliable webstore. Because drop shipping places inventory
control in the hands of your supplier, it raises your exposure to the
risk of backorders. You can, however, implement some strategies for
minimizing your exposure to backorder situations:
- Monitor
Quantities on Hand (QOH)
- Run
shorter auctions
- Cancel
an auction when supplies run low
- Pad
your inventory by drop shipping items to yourself
In
the following
sections, I explain these strategies in greater detail... Read
More
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