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Article Title: Using Drop Shipping to Expand into New Markets
Author: Stu Wiseman
Category: Entrepreneurship, Business
Word Count: 373
Keywords: drop shipping, wholesale, product sourcing
Author's Email Address: [email protected]
Article Source: http://www.contentcrooner.com
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This is just one more situation where drop shipping can help save you time, 
money, and a lot of unwanted stress. Just like drop shipping is a low risk way 
to break into the retail business, it can also help your existing business get 
its feet wet in new markets.

Let's take a look at an imaginary online retailer that sells camping equipment. 
For years, this retailer has focused on specializing in tents and sleeping bags 
only.

Now, to increase sales and profits, he wants to expand into more camping 
accessories such as cookware, backpacks, propane, emergency equipment, and so 
forth. The problem is, he's worried that he won't be able to overcome his 
reputation as a "tents and sleeping bags only" store, and he'll be stuck with a 
lot of inventory he can't sell.

In comes the drop shipper. Now the tents-and-bags-only retailer can start 
offering an expanded offering on his website without risking an investment in 
inventory.

One of four scenarios could possibly occur:

1. He is unable to sell any items from his expanded catalog, and goes back to 
selling just tents and bags. He only loses a little time from the effort.

2. He sells some items, but not enough to justify bulk purchases of the 
additional items. He sticks with drop shipping the new items to keep his new 
customers happy and coming back for more. Hopefully, sales continue to increase 
and his expanded selection becomes a major part of his business.

3. The expanded selection is a huge hit, so he starts purchasing inventory to 
save money by purchasing in bulk.

4. He finds that he loves the time he saves from drop shipping so much, he 
expands his drop shipping operation to include his tents and sleeping bags!

Whatever you're thinking about expanding into, drop shipping could be the 
solution for your business. Using a drop shipper will allow you to run your 
tests without the risk of losing money on inventory.

When looking for a drop shipper, the usual rules apply: make sure they provide 
real-time inventory reports to minimize the risk of backorders, make sure they 
use a reliable shipping provider that also provides tracking information, and 
make sure they process orders in a timely fashion so you don't end up with 
angry customers.

Stu Wiseman is a marketing consultant at Doba which specializes in connecting 
retailers with wholesale dropshippers (http://www.doba.com). With over 300 
integrated wholesale suppliers, retailers have access to a wide range of 
wholesale products (http://www.doba.com/wholesale-products).
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