For drop ship (also known as drop shipping or dropshipping) we mean a sales model by which the seller sells a product to an end user, without materially owning it in his warehouse.
The seller, after the sale, will send the order to the supplier that in this case is called "dropshipper", which will send the product directly to the end user.
In this way, the seller takes care exclusively of the advertising of the products, without the relative duties related to the packaging and shipping processes that are instead handled by the supplier.
Benefits for the seller
Possibility of creating a sales activity without the need to invest capital.
It does not require warehouses or employees.
It can sell both personally and through e-commerce websites or online auctions.
Advantages for dropshipper
Increase of its sales network.
Greater penetration of penetration of both traditional and online markets.
Drop ship and online auctions
The "drop ship" sales system, born in America more than ten years ago, has become more widespread thanks to the growth of online auction sites, which have enabled thousands of sellers who work on sites such as eBay to offer daily products made available by dropshipper, on their virtual stores, earning the price difference between the cost of the dropshipper and the final sale price made online.
The drop ship in Italy
Italy has lagged behind the United States and only a few companies are starting to offer the drop ship service, thus expanding the range of products available with this system.
Like all commercial activities, the drop ship has its risks that sellers should know before starting a sales activity through this system. The most common risks are:
Low percentages of profit: products sold in drop ship should give a profit margin never lower than 25/30% on pain of the risk of remission in the medium / long term. In the IT sector, the margin is around 15% on computers.
Risk of depletion of products: it happens when a product is no longer available in the supplier's warehouse / dropshipper. The seller should always make sure that the products he sells are available at dropshipper, and on the other hand the latter should ensure real-time communication with their sellers so as to notify the exhausted products and avoid such misunderstandings. This problem is easily overcome if the dropshipper has an integrated e-commerce system with its warehouse accounting that can ensure that every order is managed in real time.
High competition on online sales sites, which leads to an inevitable reduction in prices and therefore to a lower than expected profit.
In recent years there has been a marked increase in the sites offering this sales system.
Risks for the end user
As far as the Italian consumer or end user is concerned, there is a well-founded risk that he will have to face customs charges when the dropshipper or its goods are in countries outside the European Community: for example, consumption sent directly from China or other non-EU countries. Added to this is the difficulty of using the warranty, talking to or having to face the cost of shipping for any refunds or repairs and not least the waiting time of goods that can safely exceed thirty days.
If you have intention to try the drop ship with Mygatre.it contact us immediately to this email: firstname.lastname@example.org for information on discounts and costs. If in doubt, click the links below: