Expect no less ambiguous ‘this and that’ answer from self-claimed “experts” if you ask them how the wholesale clothing dropshippers in USA affects the pricing strategy of small online businesses.
However, if you’re the owner of one such online clothing business, you ought to know how dropshipping model affects your pricing strategy; affect for good!
So move on from the over-talked, glittery inventory management service of these dropshippers and understand the backend mechanism of pricing.
Dropshippers helps in cutting additional costs
You would know, there exist a string of additional charges (costs) that you have to pay. Wholesale clothing dropshippers USA based helps in cutting them down directly or indirectly.
Cost of owning or renting a warehouse-
Owning a warehouse, or even renting it, could cost you heaps. Even more, if your inventory is more and you need more space. Dropshippers eliminate this cost. Since they keep your stock in their own space, you don’t have to maintain a warehouse.
No or very less shipping charges-
Shipping cost is a pain- both for you and your customers. Top dropshippers have wide distribution reach and establishment. So they always charge very less and even often offer 100 per cent concessions if you’re their regular or they are offering some kind of sales.
Goodbye to shipping accidents and financial loss-
Shipping accidents might sound like a ‘fantasy talk’ to the newbies of this industry, but it happens; more often than you think. And even the top brands aren’t aloof from its financial loss. But now since professional dropshippers are tasked with delivery, the chances of such accidents- and the financial loss that comes with it- are reduced (or eliminated) significantly.
Less tax and duties-
If you’re a New York-based clothing business and have to ship to Florida and LA to your customers, you (or your customers) have to pay taxes or duties for transporting the product to different state. But what if your dropshipper have distributors in LA and Florida and these distributors have stand-by stock that you have to deliver to your customers in that particular state? They can deliver locally and save you from additional taxes and duties, of course. These manufacturers have wide distribution reach across states, which can reduce these additional costs substantially.
These are the four direct ways how wholesale clothing dropshippers in USA helps to cut down additional costs.
More profit or cheaper products to your customers?
Now you’re tasked to decide if you want to keep your profit margin high or pass on the benefit (of saving) to your customers. Of course this depends on a range of factors-
- Your cost of production
- Market competition
- Your business goals
- Your target customers and their willing to pay
Regardless what you decide- to keep the profit high or to offer cheap wears to your customers- point is, wholesale clothing dropshippers USA based does in fact affect the pricing strategy of online businesses for good and you should act accordingly to get the best from this scene.