The answer depends on your situation. Do you or do you not have the physical space and financial means to invest in and stock inventory? If money is tight and you can't afford proper inventory levels,,then drop shipping is something to consider, because when someone orders something that you don't have in stock, you'll lose the sale.
That said, do your homework when investigating drop shippers. Like any other biz category, there are lots of legit ones out there, but lots of scam artists as well. Check references and use due diligence.
One thing to remember from a payment processing standpoint: If you elect to use a drop shipper, make sure the return address and telephone info on the label is YOURS, not that of the drop shipper. If the customer has a problem or needs to contact you and can't (they reach the drop shipper and not you), that will result in a chargeback which (a) will mean you'll lose your money AND your product, and (b) you'll end up losing your merchant account since chargebacks are a big no-no.
As a professional I would be remiss if I didn't mention this: Have you made your merchant services arrangements yet? If not, you might want to consider a QuickBooks Merchant account for several reasons:
1.) Free setup, absolutely no up front costs.
2.) Free QB software included
3.) No contracts or long term commitments--if you don't like it, close on 30 days notice anytime.
4.) Since you are an ecommerce merchant, you'll be interested to know the required secure internet
gateway is included at no addional cost. Otherwise, you're looking at $149 setup plus an extra $20
per month for Authorize.net
5.) Virtual terminal also included at no extra cost, so you can handle mail/phone orders in addition to
internet orders.
Taka few moments to review the plan and, if interested, apply online at this link:
http://www.MerchantServices-help.com/quickbooks.html
Good luck. Call with questions.
AMSPCS
amspcs@juno.com
www.MerchantServices-help.com
