Any E commerce Business will love to have zero inventory in stock, yet do a lot of sales. This is possible with drop shipping operations.

Basically, you find a reliable supplier who maintains inventory of items that you want to sell, negotiate price with the supplier and get the list of items. Publish the list in your online stores and let customers place order on you. Turn around the order to your drop ship supplier and let them directly ship it to your customers. You pocket the difference between the price you sell and the price you buy.

Sounds simple right. The Devil is in the Details. The challenges in the drop ship business model are.

1. Your pricing should be carefully modelled so that you still make profit but at the same time remain competitive in the market.
2. Closely monitor the shipping of orders in time by your drop ship suppliers.
3. Ensure that you get updated price list, stock position from your drop ship suppliers. You will have to periodically adjust your price and stock availability according to the information from your suppliers.
4. Negotiate a return policy with your suppliers in line with your online stores return policy.
5. Update your shipping policies in line with your suppliers shipping policies
6. Above all, maintain a close watch on all the orders you get, price at which they get fulfilled to calculate your profitability and adjust the price accordingly.

Dealing with few drop ship suppliers with a large variety of stocks is much easier than dealing with multiple suppliers with a small list of inventory. Also the market place or your online stores should be large enough to justify the volume of business and transaction costs.

TPSynergy with its Dropship Ecommerce app can help you to get your dropship business started with minimum investment. Honest Green (www.honestgreen.com) is a drop ship supplier with huge stock of drop ship inventory. We at TPSynergy are integrated to Honest Green so that we can get your Amazon Market Place or Amazon Web store synchronized with Honest Green with minimum effort and cost.

Once you have this integration in place, whenever your drop ship suppliers add new products to their catalogue or change their selling price, it gets published in your websites automatically.

Talk to us on your drop ship ideas and we can help you to get started.

– TPSynergy Marketing Team