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Copyright 2005 Richard Keir In a recent article I talked about Google AdSense placement based on eye-tracking research. However, research by The Poynter Institute, Eyetools and the Estlow Center for Journalism and New Media has a lot to say about...

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Drop Shipping Is Ecommerce Snake Oil

Drop shipping is not for everyone. Even though it is pitched as a cure for everything from starting up withoutmoney to being able to sell without investing in inventory, it does not cure the main problems that want to be drop shippers have.

Want to be web entrepreneurs are lead down the path of finding products that they can sell before they buy them.

And to do that, they are lead into buying all sorts of things from web sites to on line stores and lists of drop shippers. They get set up with what they need to sell. And they spend a lot of time and money in the process.

There is no doubt that they are, at the same time, given advice that they are starting a business. They are definitively told that they must comply with all those rules for success on the web. They are not misled.They mislead themselves. They get so excited and so tied up in their ideas that they are going to make millions that they do not stop to plan. They forge ahead with the plan to plan in the future. So they plan after their plan is already a failure.

The people supplying the drop shipping industry are not obligated to turn away customers. They have no way to determine who will or who will not fail. So they cannot be faulted for selling to people who run when they should be walking.

There is no doubt that some of these people do succeed and do very well for themselves. But 90 to 95



percent of them fail. A good percentage of them could have survived had they planned. But they fail because they chase the quick money.

Having said that, drop shipping is an excellent way for a small business to expand. If use properly it has many advantages.

Let us take a simple example.

Anna wants to sell amber and silver jewelry and exotics crystal pieces at home parties. And she wants to be able to vary her offering so that each time she attends a home party she has the opportunity to present other products. She also wants a wide variety of products.

Now amber and silver jewelry is both expensive and there are many different pieces that can be offered. So if she were to maintain an inventory she would have to tie up several thousand dollars in jewelry, many pieces of which she might not sell quickly.

Now if she get some samples so that her customers see the products and the quality, she can take orders and have the ordered pieces shipped either directly to her or to her customers. Actually, she is better off to have the pieces drop shipped to her so she can visit her customers and possibly make additional sales during the delivery process.

So she searches
About the Author

Gary Granai is the Director of the Poland Chamber that maintains the drop shipping portal that has complete information about drop shipping. You can see it at

 

 

 

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