Selling products online is possible without shipping or inventory! Read this article and discover how!
A lot of people who are interested in starting a business and selling physical products online are having second thoughts as they have the impression that they have to store, ship and deliver all the products they offer. This shouldn’t be your barrier, as you can still run a successful business even without shipping, inventory, delivery, and all of that. As a matter of fact, it is much easier to run an online store without worrying about storing and delivering anything physical.
In this article, we will discuss how to start your own online business without dealing with shipping and delivery or carrying inventory. There are 3 ways to do it:
- You can dropship – For those who don’t know, a dropshipped ecommerce store is an online business where you receive orders on your own site, but your distributor is responsible for shipping the product to the buyer. This is great as you don’t have to worry about inventory, shipping information, and the complications that come with it. You simply act as a middleman between the buyer and the distributor. The process is quite easy, the customer finds your site and places an order, you receive the money and place an order with the distributor. Once the distributor receives the order, he sends the product to the buyer with your business logo. It appears that the product is coming directly from your brand and not from the distributor. This option is great if you don’t have a lot of money and you don’t want to get involved with shipping and delivery methods.
- You can use 3PL – 3PL is a 3rd party logistics company and most of these companies can handle the storage of the products you sell in addition to fulfill an order. There are some situations when these companies can help with product returns and customer support. Here is how the process goes: you ship all of your products to 3rd party logistics companies. A buyer or a potential customer places an order on your site, your website then sends the order to the 3rd party logistics company and the company ships the order to the buyer. At the end of each month, you pay the company a certain fee. This is a great option, especially if you don’t have the time or you simply don’t want to fulfill the orders yourself. You can consider this option if you don’t have a warehouse to store the products. You will have a full control over the customer flow and the margins are usually 50% or more which gives you more flexibility in marketing and advertising. The downside is that you will have to buy the products up front and you are the one who is responsible for attracting customers to your own website.
- Use Amazon FBA – This is the third option you could use. This is apparently the most popular choice among the entrepreneurs and online sellers. Amazon FBA stands for Fulfillment by Amazon an here is how the process goes – you ship the products to Amazon’s warehouse. The next thing you should do is listing the products in the Amazon marketplace. When a customer places an order on Amazon’s website, they handle fulfillment, storage, and customer support. This is a great option is Amazon takes care of everything and the best part is that you have access to the vast audience of Amazon’s purchasers.
Selling products online like a pro is possible even without inventory and shipping. Choose one of these options and get your online business going!
— SME South Africa (@SMESouthAfrica) 4 de febrero de 2018
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