Selling Physical Products
In the early days of the Internet, before real security measures became available, it was a bit risky to buy things on the Internet. The risk of having one’s information stolen was a very real concern. Today, however, buying anything via the Internet is completely safe. More and more people everyday are using the convenience of Internet shopping and that number will only increase over time.
The largest drawbacks to selling physical products are and always have been the problem of keeping an inventory of the products, packaging them and shipping the products. Warehouse space can be expensive and personal garages don’t hold all that much. Hand packaging is just plain hard work not to mention expensive and lugging boxes to the post office is a real pain. All of the above, of course, can be done…and it IS being done.
There’s a better way, though… a way that requires no warehouse space, no packaging, no handling and no shipping of the seller. It’s called ‘drop shipping’. Savvy Internet entrepreneurs use this all the time now. They can sell everything from tiny items to huge pieces of furniture and never have to warehouse it, package it or ship it themselves.
The way that drop shipping works it simple. An arrangement is made between the manufacturer or distributor of the product and you. You make the sale, take the order, collect the retail price from the buyer and then either email, phone or fax the order to the manufacturer or distributor and he ships the product directly to your customer. The label on the box has your company name and address on it. You collect the retail price up front, subtract the wholesale price from that amount, send the wholesale price to the distributor and the difference is your profit.
Drop shipping is a beautiful arrangement that is profitable for both the manufacturer or distributor of products and for the savvy Internet entrepreneur. There is practically no start up fees for a website to sell products using a drop shipper. There is no need for a large outlay of cash to buy inventory. There is no need to pay for warehousing inventory and not shipping or handling costs for the seller to bear.
Once a seller has established a clientele and has zeroed in on what sells the best, he may then find that he can buy in bulk from the manufacturer or distributor of the best products and make a much larger profit on each sale. This certainly isn’t unheard of. Sometimes you can find items that will sell that are at liquidation or closeout prices.
Another way to sell physical products online is to put them on online auction site like eBay for example. You can set a minimum bid price, which will insure that you make a profit and possibly make a larger profit that you had anticipated. In this case you charge for shipping and handling. Everyday seven million users spend over fifty MILLION dollars on eBay alone and they aren’t the only game in town.
Shopping online has come of age and will continue to expand hourly into the distant future. People buy things. Some of those things could be bought from you. All you need to do is to find products to sell, advertise the products or auction the products and you can sell physical products on the Internet like millions of other people are doing every day.
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