Currently, the ‘drop surfing’ word seems to have caught the buzz on the internet. There are too many marketing gurus who are educating about what is drop surfing and how you can make tons of money by doing it right
So, let us shed some light on what is drop surfing and understand the related details.
The drop surfing model
Before we talk about drop surfing, we need to introduce drop shipping as it is a broader parent term that has been in vogue since a long time.
Drop shipping refers to the practice of having your own store but not maintaining stock. Every time you get an order, you buy it from a third party supplier and the supplier directly ships it to the customer. So, the merchant never handles the product himself; they act like a simple middleman.
Drop surfing is a specialized version of drop shipping as it involves the practice of constantly analyzing the different suppliers who deal in the same products. You choose the best supplier who is charging the least amount. Whenever the supplier increases the price, you surf among the wave of options available and shuffle the supplier by choosing the one with the new least price quotation.
So, drop surfing essentially involves surfing the wave of supplier options constantly on the lookout for the best price to maximize your profit margin.
You now have a clear picture of what is drop surfing and why too many internet gurus are fixated on it. When you look at a small order quantity, drop shipping and drop surfing won’t make much of a difference. But, if the order amount is massive and is a wholesale quantity, this strategy can bring in a huge difference and it can help you amass a lot of extra money.
The things to keep in mind
While there is no doubt that drop surfing can help you make more money as compared to drop shipping, you need to understand the value of time and effort entailed in research.
Always keeping an eye on the wave of suppliers and their constantly changing pricing might not be the easiest thing to do. The key reason behind the massive popularity of the drop shipping model is that it doesn’t involve a great deal of time.
You can channelize this time to actually market your website because it all boils down to the number of orders you are getting. So, if you spend a large part of your time looking for best price among suppliers so as to tap the most out of drop surfing, you may end up losing out on marketing which will impact the order volume.
The key thing here is to make the right trade-off. You can always have a pool of suppliers with you among whom you can compare and contrast the prices to come to the right decision.
Everyone wants to maximize their profits, but do not do it by compromising in the net orders which you are going to get as it would be a failed move.