Dropship: Like every business model, dropshipping brings along its own set of pros and cons that one may like to consider before diving head first.
Dropshipping is a unique business model which allows shop owners to set up a virtual shop without having to stock inventory. This enables them to sell items online without physically purchasing stock. Dropship Wholesalers offers its products to both retailers who are looking to buy products in wholesale and other dropshippers who are looking to use Dropship Wholesaler’s products on their sites. The products are stocked in large quantities ready to be dropshipped at convenience. The product is usually sent directly to the customer by the supplier allowing the Dropshipper to not have to worry about shipping and handling.
Dropshipping can allow your business a hefty amount of benefits:
Low Overhead Costs
Businesses in physical form require the owner to take the risk of purchasing stock in order to be able to sell it. When it comes to dropshipping the retailer doesn’t need to stock his shelves and risk his product not being sold entirely
Elimination of investment lost
Because online retailers do not need to take the risk of purchasing stock their customers may not purchase, they can eliminate the loss of investment entirely. This allows for a friendly budget that can be kept healthy which in turn leads to stronger pockets. This can prove to be very important for times of economic crisis or personal financial problems that may arise in the future.
The time you would usually spend receiving and organizing stock, printing labels and do all the packaging and shipping of orders can now be saved due to dropshipping where the shop owner need not worry about such things and leave it to the suppliers.
No Minimum Orders for dropship
Your wholesale orders are based on the wholesale orders you receive from your customers. You can order as many products as you like and also be able to order as few items as you might require. Individual product orders are also catered to.
Larger Variety of Products for Store
Since you don’t need to stock up on products your store can carry multiple items in its product line. You can also offer large items such as furniture or large canvases without having to worry about how to ship each piece.
Of course, there are also the downsides. Although not many in number here are two limitations you might like to consider:
Slim Profit Margins
Dropshipping is a volume business. The more you purchase the better price you will be offered per piece. Even if your dropshipping prices are wholesale prices, they would be wholesale prices on a single item. In order to receive discounts you would have to purchase in bulk and that is something you can’t do in the beginning when you are just starting out.
Stay Organized with dropship
It is possible that your wholesale supplier isn’t packaging products correctly or is slow in filling out orders. This can reflect badly on your business. Just be sure to try out a supplier with a single product just to see if you have a good experience. You can even order yourself and later use the product in your shop in case it is a popular selling item.
The one downside to having to do everything yourself is that it can be easy to slip up and make an error. Shipping is no exception and is probably one of the most troublesome aspects of an online business. You require professionalism, efficiency and most of all skill. You don’t have to risk it though. You can easily register yourself on Dropshipwholesalers and make a good online store for yourself and have a healthy online business.