The Problem With Importing Products
Many people often ask us, what is so wrong and difficult about importing products in bulk in to the country for sale to consumers? It seems almost as if importing is viewed as a simple sport - one which doesn't involve a whole amount of financial risk - and something which can be achieved with relative simplicity.
In actual fact, this is not true at all. Importing goods is a particularly risky business for all parties involved. Firstly, there is the question of whether or not the goods will actually sell to the domestic audience. If they don't, you will be stuck with an expensive bulk load of the same product, and you will probably be out of pocket. In this scenario, you as the importer, are bearing all the risk.
Additionally, what happens if you are scammed by the people supposed to be sending your ordered products? If they take your money and run, you are pretty much left with absolutely nowhere to turn. Therefore, for the average person wanting to make a few dollars from selling foreign goods in there own country - there surely must be a better way to go about it?
Well, there is. It's called dropshipping, and we will take a closer look at this idea now.
Dropshipping mitigates risk
The idea of dropshipping is certainly not new. It has in fact been around for many, many years. Basically, under a dropshipping agreement, you as the "importer" are able to sell the product before you actually have it on hand, and then organize for that product to be shipped straight from the supplier to the consumer.
In effect, you are the middle man of the transaction. To facilitating the sale and transfer of the particular products, you are able to net the difference in the sale price (which you ultimately decide), and the price that you must pay to the supplier to buy the product (usually a wholesale price).
By doing this, there is absolutely no risk left in the equation. Because you already have the money, and the consumer has already ordered the product, you are able to sit back - and simply count the cash at the end of the day. For that reason, dropshipping is definitely superior to straight importation.