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Transporting the Goods: Less Than Load Freight Shipping for Small Businesses

Being concerned about the economy and slow retail sales isn’t just a passing worry, its a daily crisis for hundreds of thousands of retailers, e-tailers, and vendors across the country. With a multitude of small businesses relying on consumer spending, many are scrambling to find new ways to simply keep money coming in while trying to entice the buying public to spend, spend, spend. Ultimately finding themselves with less cash and bare-bones access to credit to support wholesale purchasing, retailers are turning to drop shipping programs to help keep their businesses afloat.

Drop shipping, while widely used in many retail 중국배대지 sectors, is still an undiscovered method of buying and selling products for some small business, who may have heard the term, but are unfamiliar with the process. Or, with how drop shipping can be beneficial for moving inventory and providing cash flow. Drop shipping works by allowing a retailer to offer products for sale which they do not carry on physical inventory. Instead, the retailer can carry images and a description of a product on their website or in their catalog, and when a customer places an order, the manufacturer/vendor of the product ships directly to the consumer. This means the retailer doesn’t have to spend a bulk amount on new inventory or carry products they aren’t sure will sell. Instead, the retailer takes a percentage of each drop shipped product sold.

“You bet I’ve looked to drop shipping! Cash is tight, credit is even tighter, so to keep my online boutique fresh with new products, I’ve been recently adding only those brands that I can drop-ship.” Tara Bloom of Maternitique.com, feeling the financial pinch of buying inventory in bulk, knew drop shipping could offer a cheaper alternative. Bloom’s second strategy to keep her boutique moving forward: Diversify-for which the drop shipping option also works well. “The latest drop shipped products we’ve added are organic and eco-friendly crib bedding and maternity clothing and organic baby clothing. These items aren’t central to my store’s brand message of pregnancy beauty, but they supplement our core products nicely and enable us to keep talking with moms and families after baby’s been born.”

Ellen Bell, owner of Homeproductsnmore.com, agrees. “About 90% of the products we sell online are drop shipped directly from the manufacturers to our customers. This means we’ve got a positive cash flow business-which is a good thing in this kind of economy with so many banks reluctant to lend, or extend open lines of credit.” Because products are moving slower, retailers are reluctant to add products to physical inventory which they are not sure will be good sellers. Instead, retailers can test the product’s selling power with no financial risk by contracting it via drop shipping.