Shopping online is no longer restricted to an elite minority as everyday millions of people are using online auction websites. From electronic items to jewelry and from coins to automotive parts online auction sites are catering to millions of customers everyday. It has given people the ease of shopping from the comfort of their homes and office at their own convenient time.
Shopping giant eBay made online shopping a part of people’s everyday life but these days there are many eBay alternatives which are offering more timely delivery and better deals to the bargain hunting buyers. Drop shipping is a relatively new concept where the retailer does not keep goods in stock, instead transfers customer orders and shipment details to either the manufacturer or a wholesaler.
Here are seven ways in which online auction sites and drop shipping sites can work together and mutually benefit from the collaboration:
1. When drop shipping items are showcased on online auction sites the website owner earns a small commission from the product sale while the manufacturer gets a larger platform to showcase his/her products.
2. Drop shipping can increase the inventory of any online auction finder many times over. This will help the website increase its brand value in the online market as well as increase its user base as it will cater to a wider market.
3. An online shopping portal can sell niche products such as exotic food products and homemade wines adopting the drop shipping method. Niche products are in great demand in today’s market and can mutually benefit both drop shippers as well as online retailers.
4. There can be a maze among the online auction sites and drop shipping agencies where multiple networks can be formed. This will allow auction sites to showcase products from different parts of the world at the same time drop shipping agencies will be able to target a wider market and user base.
5. The pricing of the product can be very competitive in this association as the retailer can tie up with the most economical drop shipping company. At the same time a drop shipping agency can look for the best retailer to get maximum publicity as well as maximize profit for itself.
6. In this model of association storage is required at the manufacturer’s level and not on a retailer’s level. This will reduce the storage cost considerably as it is far more cost effective to have large space with a retailer than with a manufacturer.
7. Online auction sites and drop shipping agencies can have a tie-up sitting in two different geographies. The shipping cost of the products to those geographies where the demand is higher can be reduced if drop shipping agencies are chosen in the high demand markets.
There are a few ways in which drop shipping agencies and online auction sites can come together where their synthesis helps them in increasing profits and creating bigger brands. Shopping online will increase exponentially in the coming years and will create the demand for tie-ups between online auction sites and drop shipping agencies.