Worried about the cost effects that the rate increase proposed the U.S. Postal Service will have on your business?
Publishers aren’t alone; direct marketers are experiencing sleepless nights, too. One way to sleep better is to practice address “hygiene.” That is, update your database and address files to eliminate as many of the outdated names as possible.
Another approach, according to Clarence Banks of Donnelley Logistics Services, is to focus on drop-shipping. Because drop-shipping trucks your magazines closer to their destinations before they enter the postal stream, it saves money by bypassing delivery points. While Bound Printed Matter rates are proposed to increase an average of 18.1 percent, three new destination discounts are being introduced to provide mailers with opportunities to reduce their postage costs. The Postal Service has proposed discounts for mail drop-shipped to a Bulk Mail Center (BMC), the first major sortation site in the Postal Service delivery channel; a Sectional Center Facility ( SCF); or a Destination Delivery Unit (DDU). For example, by drop-shipping periodicals to a Zone 5 (basic presort) SCF, publishers would save 9.4 percent, or $15.10 per hundredweight, over a Zone 1 mailing (calculated according to the proposed postal-rate increase). A Zone 5 DDU drop-ship would save 12.4 percent, or $18.10 per hundredweight However, Banks warns that recent fuel-price increases could mean higher transportation costs in the future. A possible solution is to bulk ship your titles with freight from other customers–it’s cheaper, and larger consolidators will go deeper into the mail.
By former eBay Powerseller Greg Y.
Make sure you are working with a reputable company - Your supplier becomes an extension of your business. As a result, you need to ensure that they are a professional dealer who will continue to provide service after the sale has been made. It is always a good idea to have a real person who knows your business to contact if there is trouble (e.g. an individual account manager).
Avoid dropshippers who do not ask for a federal EIN (employer identification number) - Most legitimate wholesalers in the United States require you to provide them with a tax ID number in order to exempt you from sales tax (since you are not purchasing as a consumer).
Know how the item is being shipped - Customers can become worried if an item takes too long to arrive. Make sure you know how and when the item was shipped so you can provide step-by-step updates when requested.
Make your listings professional - Chances are that many other people will be selling the same products across the web. You can make your listings stand out by going the extra mile to make them look clean and professional to attract buyer’s looking for a reliable company.
Provide excellent customer service - Especially when you are not handling the product yourself, it is imperative that you communicate effectively with your customers. There are a lot of scams on the internet, and some buyers can be paranoid. Taking a few minutes to calm their concerns will make your business look even more legitimate and may even earn you repeat customers.
Never reveal that you are a dropshipper - Many people who are not familiar with wholesale dropshipping may think that it is a type of scam instead of an alternative method of product sourcing. By not revealing that the item is coming from a third-party, you also prevent customers from attempting to contact your supplier directly in the case of a delay or a problem.
Sell in multiple channels - The internet is full of excellent markets, so don’t limit yourself to just one or two. Consider selling on online auction sites (such as eBay), shopping sites and even your own website. It is very important not to become too dependent on any one channel, especially when it is a third-party site.
Outline a clear return policy and find our your supplier’s policies for defective items - It is inevitable that some customers will need to return items, whether they are defective or just not what they were looking for. Make sure you clearly state where returns should be sent, how much will be refunded and how the refund will be issued. Before you list anything, ask your supplier how they handle defective items so you are not stuck with piles of broken widgets.
Try multiple products and categories until you find a niche that works - The internet brings together buyers and sellers from all around the world, creating markets for all kinds of products that you may have never even known existed. Do not limit yourself to just one kind of product-experiment and explore until you find a niche that is right for you.
Make your business look as professional as possible - Chances are you will not have the best price on the net, so make sure that your business looks as professional and legitimate as possible to attract customers looking for a reliable seller. Buyers are often willing to pay more from sellers who look and sound trustworthy.
The new system will accommodate the regular retail consumer, while the wholesale and drop shipping program will be assisting stores and online retailers add to their product line without the need to stock or ship the products.
For drop shipping, resellers/retail stores can simply place orders online, and then our system will immediately fill the orders and ship the products directly to the reseller’s customer. The products are shipped in the reseller’s name, and the customer will never know how much the reseller paid for the product, or where it was purchased.
The manufacturing base has been growing rapidly to include over 17,000 sellers. In addition, over 200,000 items will be available to ship out locally in the U.S., to save on shipping time and cost.
In addition, we have also created a unique program for companies located in the U.S. or Canada, with offices and branches located over seas. With our relationships established with manufactures all over the world, U.S.-based companies who want to buy products for their overseas offices will now be able to place the order on Tougi, pay for it, and have the products delivered locally to their office stock or factory overseas.
Here are some of the advantages of using this new program:
-- Save on shipping cost and time
-- Don't have to invest in costly inventory
-- Know exactly the cost of the merchandise in advance
-- All payment will be in U.S. dollars
-- Receive direct manufacturer prices
-- No shipping hassles
-- No minimum purchase requirements
-- Real time online ordering
We have been working with several mail order and online resellers testing the new system. Many of these large resellers already have thousands of customers in their database. Having products drop shipped by Tougi, will allow these resellers to concentrate on sales and advertising functions, rather than stocking inventory. The relationship with these resellers will help in expanding the reach of our unique business model.
Tougi handles all financial settlements, billing and administration, allowing manufacturers to save on time, staff and administration costs. Manufacturers can now work with many buyers without having to develop and maintain various bilateral relationships. Instead manufacturers require only a single relationship with Tougi. Buyers will now have access to the best rates on products without having to negotiate a contract separately with each manufacturer.
Tougi is an important addition to Nettel’s services portfolio, providing our customers with another competitive advantage in the rapidly changing environment. Tougi is a great new initiative that will help manufacturers develop and penetrate their target market faster than traditional methods.
As an online consumer, you’ve probably purchased a product that was fulfilled by a dropshipper without even knowing it. Lots of people don’t know who a dropshipper is and what a dropshipper does. In an effort to clear up misconceptions this article answers the questions, “Who is a dropshipper?” and “What does a dropshipper do?”
Who is a dropshipper and what do they do?
Simply, the answer is a supplier who dropships. What is drop shipping? Drop shipping is a method, or technique in which products are sent directly from the supplier (or a manufacturer, distributor, wholesaler, etc.) to the end customer without passing through the retailer’s hands. This practice is used by retailers and performed by suppliers. Dropshippers are suppliers that perform this drop ship service.
Who isn’t a dropshipper?
Consumers
Consumers are not dropshippers. They simply purchase the product. They start the process with the original order, and end the process when they receive the product. Most consumers don’t even know that dropshippers were involved.
Retailers
Retailers are not dropshippers. Some big-named online retailers (such as BestBuy.com, Costco.com, Amazon.com, and Buy.com) use dropshippers, but they themselves are not dropshippers. They have relationships with dropshippers or dropship aggregators.
Dropship Aggregators & Directories
Some companies common in the drop shipping industry are not dropshippers. There are companies that expand business opportunities for both the retailer and dropshipper. These technology companies (e.g., Doba, Worldwide Brands, and Shopster) offer software that helps bring together retailers needing a product source, and dropshippers needing retailers to sell their products. Even though these companies work directly with retailers usually they are not the actual dropshippers.
Overall, dropshippers are simply suppliers offering the dropship service. Although they are not dropshippers themselves, consumers, retailers, and dropship aggregators are all pieces of the drop ship pie. They are necessary to make drop shipping work.
What is Dropshipping?
Dropshipping is a relatively simple process that has been around for many years. The act of dropshipping occurs when a manufacturer and/or distributor sends a product directly to a customer on a retailer’s behalf.
How Dropshipping Works
Many manufacturers* do not sell directly to consumers, nor do they supply retailers. These manufacturers would rather use distributors to get their product to market. Distributors buy in bulk and then distribute the product to retailers.
In some cases, distributors prefer sending the products directly to consumers rather than sending them through the retailer. The retailer simply informs the distributor of the order and then collects a portion of the profit.
Here is a more specific example of how the dropshipping process works:
The ABC Widget Manufacturer manufactures widgets and then sells the bulk orders of widgets to a distributor for $10 per widget.
The ABC Widget Distributor sells the widgets that they purchased to select retailers/resellers for $15 per widget. Rather than sending the widgets to the retailer, the distributor fills widget orders on the retailer’s behalf, sending widgets directly to the customer.
The ABC Widget Retailer handles all of the product marketing and sells the widgets to the public for $20 each. Rather than keeping a stock of widgets on hand, the retailer orders widgets from the distributor as they are sold.
(*Note: In some cases, the manufacturer and the distributor are the same company. This is a very common occurrence.)
The Benefits of Dropshipping
Dropshipping benefits everyone by dividing the workload. Each party gets a piece of the pie without having to do all the work on their own. Here are the main benefits of dropshipping:
The Manufacturer: Dropshipping allows a manufacturer to get a product to consumers without having to retail the product. This allows them to concentrate on what they are truly good at— manufacturing.
The Distributor: The distributor has the best of both worlds. They can make money from a product without having to create or market anything. Another benefit for distributors is their narrow customer base. Selling to a select group of retailers is much easier than selling to the entire world.
The Retailer: When a distributor fills an order on the retailer’s behalf, it benefits the retailer in a variety of ways. For example, retailers are not required to have store inventory, there is minimal financial risk, and best of all, no merchandise handling is required.
Getting Started
Becoming a dropship retailer can be both easy and profitable. There are thousands of companies who are willing to share profits and ship products for you. If you approach the dropshipping process properly, you can begin a risk free online business that requires very little or no out of pocket expense.
