Dropshipping is a retail fulfillment method that has been exponentially rising in popularity among entrepreneurs and business owners interested in starting their own e-commerce business. This method basically a business model where the store does not have to keep any goods in stock that it sells but the good are purchased from a third party and shipped directly to the customers. The owner of the retail store actually never sees or handles the products.
The difference between dropshipping and normal retail method is that the selling merchant does not stock or even own an inventory but instead purchases the inventory as needed from a third party – usually a wholesaler or manufacturer – and fulfills the order.
This unique and very well-admired method offers a number of benefits. Take a look.
- Money is always a huge factor when it comes to starting one’s own business. The biggest advantage that dropshipping companies offer is that you can launch their own e-commerce store without having to invest thousands of dollars in inventory up front. By paying a nominal fee, you can use the dropshipping company’s inventory as your own and even showcase those products either on your own store or across big online marketplaces such as Amazon or eBay. Also, you do not actually make any purchases unless the product has been ordered and paid for by the customer. Starting a business with less capital becomes possible, thanks to companies offering dropship program.
- Without the need to handle physical products, running a successful e-commerce business becomes easier. Huge headaches such as managing a warehouse, packaging and shipping of orders, keeping a track of inventory, taking care of returns and continually ordering products to manage stock levels are taken care of by the dropshipping wholesaler.
- Since you do not have to deal with purchasing inventory or managing a warehouse, your overhead expenses become quite low. You can run your business from your home or anywhere in the world with a working internet connection.
- As you are not pre-purchasing an inventory, you can choose to offer your customers with a wide range of products to choose from. Best dropshipping companies provide flexible dropship programs that give you full freedom to choose the kind of products that you would like to sell and you can either select its entire inventory or pick and choose.
All the above benefits make dropshipping a very attractive business model to not just beginning but even established merchants. Take advantage of the flexibility and convenience offered to flourish and dominate the web space!