RiteCart multi channel, drop shipping solution
Drop Shipping - Next Big thing in ecommerce!!
What exactly is drop shipping?
Simply put, drop shipping is selling something you don't own. There are companies that offer merchandise for sale that will ship the merchandise directly to your customer once you pay for it. Here is how it works:
1. You find a company that agrees to drop ship. You list their merchandise on eBay or your web site for sale without first purchasing it.
2. When the item sells, you collect the selling price (retail) and the shipping cost from you customer.
3. Now you send the wholesale (lower) price + the shipping and handling fee to the drop shipping supplier.
4. The supplier then ships the item to your customer.
5. Your profit is the difference between the retail and the wholesale price
There are two types of drop shippers and it is important to understand the difference:
1. Aggregators
2. Manufacturers or master distributors
Let's look at each type before you decide what kind of company you want to work with.
Drop Ship Warehouse Companies
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Drop Ship Warehouse Companies, also known as aggregators, are basically middlemen. These companies list products in a virtual warehouse that other, real wholesale companies have. They don't really have any products in stock.
In general these companies make their money from membership fees or handling fees. When you order something from them, they order it from the real wholesaler, mark up the cost and/or charge you a fee. Because of this it is almost impossible to make any money as they have basically made the actual wholesale profit.
If you sign up with one of these companies, you will soon find that most of the merchandise they offer is already selling on eBay or Amazon for about the same price they are offering it to you
Manufactures and Master Distributors
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There are hundreds of actual manufacturers who will drop ship. Some of them do it directly while others use the services of a master distributor. When you work directly with a manufacturer of the product or their master distributor, then you are getting the lowest price available. This is where you can make the most money on eBay or a web site.
RiteCart - A perfect drop shipping solution
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RiteCart dropshipping module is built to provide a comprehensive solution for all of your drop shipping needs.
As a part of its manufacture solution, RiteCart drop shipping module provides you with
1. Retail Seller Registration page
2. Manual selection of products on your website for retail sellers
3. Automatic electronic update of sales order and shipment information from retail seller
4. Automatic payment extraction from Retail sellers preferred payment mechanism
5. Notification sent out to retail sellers once the orders have been fulfilled and shipped
6. Web page to update information of sales for non electronic retail sellers and to pay for goods
What RiteCart dropshipping does for you is, it provides you with a new channel of sales. This one single channel can help grow your business reach and profits exponentially as it allows you to penetrate deep pockets of market, which could not have been reached otherwise.
So do you think, is it the next big thing in ecommerce? We do for sure.
