Drop Shipping - Is it For You? - Part 2

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Introduction to Drop Ship Vendors Report

Drop shipping vendors fill an essential niche in the gift industry.

The drop ship process begins when a retailer contacts a wholesale supplier to order gifts, gourmet baskets, fruit, flowers, or customized products to ship to the retailer's client(s) on behalf of the retailer who does not normally stock such items.

The drop ship program option, also known as fulfillment services, has become a viable alternative for a number of reasons.

1. Gift basket designers who are starting a business don't always have enough space in their home offices or retail shops to house numerous designs.

Drop shippers maintain an adequate supply of inventory to create gift baskets at their facility for future orders.

2. Laws in some states, whether considered antiquated or placed on the books to protect the public, prohibit designers without storefront locations from selling gourmet products and alcoholic beverages.

These retailers can still sell gift baskets to their clients through drop ship programs.

3. Designers who are unable to keep pace with large quantity orders from corporate clients or orders placed during the holidays turn to drop shippers to supplement short-term demands.

There are other advantages when contracting drop ship program support.

4. Product categories are easily expanded through drop ship programs without buying additional inventory.

This is a boost to retailers who want to offer flowers, balloons, and cookies along with gift baskets.

5. Enrollment and membership fees are relatively affordable, with one basket order per month covering most fees.

6. Ease of program entry and exit allows the retailer to use a supplier's services when needed, change suppliers, and expand business when the supplier offers new categories that please the recipient.

7. Online ordering options makes purchasing and tracking orders quick and easy.

8. Profit margins for retailers are upwards of 50 percent on each sale, making most programs an affordable alternative to selecting, storing, and shipping designs.

With every program, there are caveats, and working with a drop shipper is no exception. The following points are a major concern to some gift basket retailers, while others consider them the cost of doing business.