Pros and Cons of Drop Shipping

April 29, 2009 · Print This Article

Drop Shipping is a very popular option for eBay sellers and others starting a home-based business.

The benefits include:

1. You don’t need to store anything – not products and not shipping materials.

2. You don’t have to pay shipping to receive the products from the distributor.

Potential Issues:

1. There is often an extra fee you pay for each item, generally between $2 – $5.

2. Even though you didn’t ship the items, your customer will still contact you if an item arrives damaged or not at all.

3. You won’t always know when your drop shipper has low inventory. You could sell something that is potentially out of stock.

Comments

One Response to “Pros and Cons of Drop Shipping”

  1. Car Transportation on June 16th, 2010 11:18 pm

    Another con is that not all drop shipping providers support all the industry standard shopping carts.

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