Dropshipping is a retail method that prevents stores from keeping the products it sells in stock. It allows stores and especially Ecommerce stores to sell their entire products by purchasing it from a third party and having it shipped directly to the customer.
This means that through the entire process, merchant doesn’t see or handle the product. Therefore the main reason why drop shipping is actually unique is because of the following.
- Selling merchant doesn’t stock or own inventory.
- Selling merchant never sees or handles the product.
- The merchant purchases inventory as needed from a third party.
Drop shipping comes with a number of benefits both to the merchant, buyer, and seller. They usually include the following.
It requires less capital. Basically, drop shipping works with an ecommerce site. What this means is that when coming up with drop-shipping you actually don’t have to spend thousands of dollars in up front inventory. Instead you can only purchase the product if you have already made the sale and have been paid by the intending buyer.
It is easy to start too. Think about it, you don’t have to deal with physical products. Additionally you don’t have to worry about managing and paying for a warehouse, packing and shipping your orders, tracking inventories, handling returns and inbound shipments, and constantly ordering products and also managing stock levels, how easy can it get?
It has low expense. Many businesses have to worry about managing one thing or the other. In drop shipping you will only worry about running your business from a home office. And all you need will be a laptop and expenses that could run for less than $100 a month. Either ways the expenses will be lesser than what other businesses will need.
You can always move. You are not rigid. You are not fixed. Basically every business can move. But come to think of it a dropshipper only moves with a laptop, work table, and possibly a chair. Other businesses will have to move stock, rent storage space, and make sure that they sort out their inventory and warehouses. The run is simply easy here.
It is easy to scale too. Unlike the conventional businesses where you had to sort out the clatter, drop shipping leverages suppliers. What this means is that the work to process additional orders will be borne by the suppliers. This prevents you from having a lot of work up your back any day.
Finally with dropshipping you can integrate your site with numerous plugins that will make your work really simple. You don’t have to generate leads through a single portal. In fact you can tweak in so many other options that will make your work really simple. This has made dropshipping fun and pretty easy to work with.
Looking at the advantages of drop shipping, there is no doubt that many dropshippers would love it rather than going the traditional way of business today. As dropshipper you will have generally an easy time.