Is there way to have a store where you don't actually stock products of your own but when a sale goes through, a supplier will dispatch the product? I am not talking about afilliate programs here.
I think is called dropshipping , there are a lot of companies making it but in my opinion most are not reliable, however you can find some big company offering this service. The main problem is if the dropshipper make something wrong is your reputation at risk.
Yes, what you are talking about is called drop shipping. However, be warned, dropshipping can be a very tricky wicket. First, you most likely will have difficulty getting any pricing on products that can lead to a good ROI. Second, you are totally dependent upon that company sending the product. Which from my experience is a tough position to be in. Some drop shippers don't keep updated inventory and can take weeks to re-fill their inventory. You usually find this out, after you have made a sale to a customer. It can be done though, it is just a steep hill to climb. Be careful of the companies you deal with, there are a lot of "dropshippers" out there that just rip people off. Don't go on ebay and buy those dropshipping info cd's either. They are a rip off too. To find good quality dropshippers, you will need to either: a) go to merchandising conventions and meet the sellers yourself b) contact the manufacturer directly and ask them for their distributors' contact information It takes a lot of time to find quality dropshippers... Also, you will need to make sure that you are set up as a business entity, as you won't be able to get any deals in place w/o a Tax ID #. (At least in the US). Best of luck! Morty
On the tax id# part, so if my company is not based in US, but want to do some dropshipping in US, does that mean I still have to have a subsid in US? Why do they want the tax id?
That one I am not too sure about. My gut tells me that you may need to file as a foreign corporation, and then get a tax id. But to be honest, I don't really know.........there may be an International number you file for, or something. You may want to do a search at irs.gov and see what comes up. Sorry that I can't be of more help. Morty
Not all company accept foreign customers, especially bigger one, generally if in the signup there's listed your country you can join the dropshipper. The tax id is required because a wholesaler don't want list prices to public but only to retailers, some companies additionally don't want users to sell products at low prices on ebay. an example of a big wholesaler offering dropshipping http://www.ingramentertainment.com/IRSS.html
An alternative is setup a real shop, stock products in a service like http://www.ifulfill.com the only drawback is the possibility of unsold inventory but if you are a good wholesale buyer you can make high profit.
There are fulfillment houses, that will act as warehouse and shipper for you. You basically pay a monthly fee, have your inventory shipped there and then they send it out for you. This type of setup though can take a substantial amount of money.
You can use drop shipping. The problem with drop shippers have been the dispatch of goods not consistent with the description, resulting in rejection and dissatisfaction by customers so you may have to research well.