Dropshipping is currently very much on the rise. It is a practice of fulfilling orders by a manufacturer who then ships to the consumer on behalf of the retailer. This type of business platform has very attractive pros for why you should consider dropshipping. Lets have a look at the advantages dropshipping offers.
Low Start up costs
When you decide you want to start a business, one of the very first things you will have to consider is where the initial investment shall come from. However, in dropshipping the start up costs are a bare minimum. This is because other than membership fees and time devoted to the dropshipping store, this business won’t require much out of you monetary wise. You don’t need an office or merchandise or anything initially. With just a good internet connection you can set up your store and direct orders to your manufacturer directly.
Since you are not purchasing any merchandise there are no payments that need to be made upfront. Because there is no inventory, your business is automatically put in a low risk category since if it fails the only money you shall be losing out on is the cost of your website or membership fees.
If you are launching a product that is relatively new in the market, it most probably will not require an investment before it can be sold. Shipping costs are also heavily minimized because you shall be having access to better shipping rates through dropshipping. The costs would be so much cheaper than having to ship your own packages If you weren’t dropshipping. Also, goods are less damaged in this business platform. This is because the change of hands of the products is so much lesser than any other business. Its usually from the manufacturer directly to the consumer.
This business platform is highly convenient for retailers and wholesalers alike. All items are packaged by the manufacturer leaving you no worries about product shipment preparation.
If you decide to add a new product to your store, all you need to do is add it to your online store. It’s convenient as it doesn’t require you to stock up on the item itself.
You do not require a storage facility or retail location for your products. The website is all that is needed to sell your products. You can also offer a wide variety of products that would not be possible if you had to stock all your products beforehand. You also have the ease of being able to sell larger items and perishable items since you won’t have to worry about the delivery hassle. It will be the manufacturer’s responsibility seeing that the product reaches on time.
Many manufacturers will allow you to sell their products with your labels and tags. This allows the consumer to not know that a Dropshipper was used and that the product came directly from the seller. It just creates a better psychological impact. So get selling!