Is Drop shipping from USA to UK a successful business model Photo courtesy of flickr
Not every member that signs up for worldwidebrands is located in the USA. For new members that are based in the UK are there any problems and what is it really like for UK small business owners? Are there any advantages or disadvantages for being based offshore? This article will explain these points in detail so you will know if doing business in the UK using worldwidebrands is even possible.
Typically the new member at worlwidebrands is a beginner at starting an online store. They spend hours researching the subject online. Often they will go around in circles trying to decide what drop shipper or wholesaler to use. WorldwideBrands will not have any dramas with users from the UK signing up for their online directory.
UK users can purchase items from the suppliers that worldwidebrands list in their directory commonly by a credit card or wire transfer – but wire transfers can be very expensive. Wholesalers and dropshippers all require payment up front. This is understandable as fraud is very common online. Communication with the wholesalers can be email and telephone. This will install confidence for the new Ebusiness newbie.
Are there any advantages to being based offshore when running an online store from the UK? – there is major benefit to running an online E-store when based in the UK. You have the luxury of the UK pound being having major strength over the US green back. This means you can buy products cheaply at US prices and have nice profit margins when you sell to your UK customers. This is of course dependant on the type of product that you choose to sell. If you choose to sell a major product you will need a license to sell online. Or if you ended up going through a UK distributor the margins for this method are very low along with extreme competition.
UK online retailers can sell locally on ebay.co.uk with their own online store. This can be a great way to test the market for new products. If you are interested to see an example of how I drop shipped products to the UK from the USA when I was based in New Zealand take a look at my article here
It is obvious from this article that there are major benefits to be located in the UK or another country where the local dollar is stronger than the USA. The online E-tailer has immediate advantage of high profit margins when selling to local markets. Setting up relationships with these companies based in the USA is easy with many pre-pay options for items to be drop shipped.