Buying and selling of goods on the online setup have been going on for quite a while now with cut-throat competition. For the one who is meditating on starting his business in a tough and competitive e-commerce environment, it is vital to do the calculations and homework beforehand. Over the past few years, the concept of drop shipping has not only grown in popularity, but e-commerce startups are getting dropshipping services because of the unique benefits it gives. Before digging further into why is it so, let’s find out what is dropshipping if the concept has faded.
GETTING DROPSHIPPING SERVICES?
Before looking at the pros and plus points of drop shipping in the e-commerce world, we need to revive and refresh our memory of what dropshipping means? Dropshipping is a way of fulfilling retail orders in which as a merchant, you don’t hold any inventory whereas all the orders are processed, managed and dispatched by the dropshipping company. Isn’t it great to begin your e-commerce business virtually with the least of your finances and resources? The dropshipping service providers are normally manufacturers, suppliers, wholesalers and importers individually or all of these.
HOW IS DROPSHIPPING HELPING E-COMMERCE STARTUPS COLLECTIVELY?
If we study the dropshipping concept deeply only, then we are going to realise its utility and significance. It is not a cakewalk as everything requires hard work. You need to understand fully how you can meet your business targets while getting dropshipping services. Stepping into a retailer’s shoe, when a retailer launches his E-commerce website or ponders to resell dropship products for eBay and Amazon, what products should I choose? How many products should I choose and which dropshipper should I work with? When you answer these questions initially, you are well underway with dropshipping business.
The reason why eCommerce startups are getting dropshipping services is the shared advantage, the ease with you can begin your online trading and marketing a great number of products to the international market. It is between the dropshipper and the retailers where it ends in the benefit of both provided both do their share of work with dedication and commitment. If supplier and retailer work towards a common aim of customer satisfaction with great customer services, drop shipping will become a glass half full concept rather a half empty one. Getting dropshipping services is the right way and a great to get started in e-commerce, really it is! Because…..
LOW CAPITAL REQUIRED:
Kicking off a click and mortar business is relatively convenient when you accompany that with the dropshipping solution because of the low capital needed. One can just start with a few dollars, with business management skills, Ecommerce acumen, a laptop and an internet connection. You are freed from the financial burden of building your physical store that requires a huge investment without the guarantee of its success. When e-commerce startups are getting dropshipping services, they do not need to buy inventory, pay for warehouse administration, delivery cost, labour and many other expenses related to it. The overhead cost amounts to zero with dropshipping. In other words, dropshipping paves the way for your e-commerce business just as you want.
OPTION TO SELL BROAD RANGE OF PRODUCTS:
Yes, you are right! When e-commerce startups are getting dropshipping services, they enable themselves to sell as many goods as they want according to their customer’s tendencies and market inclination. This is not the case with a brick and mortar store where you buy products in the hope that all of them will be sold which is not always the case. Here in dropshipping, you do your research and explore unique products that can specifically target a group of people which eventually helps you enter global market with less competition and a greater profit probability.
DROPSHIPPING ALLOWS EASE AND CONVENIENCE TO OPERATE:
Dropshipping frees you from the restraint of time and place because you can work irrespective of where you are. You will be having some real drop shippers and reliable dropshipping service providers to consult with. You can operate your e-commerce venture literally from anywhere because dropshipping does not call for concrete steps in the beginning instead it calls for strategic understanding and strategic implementation of your eCommerce plan and the marketing efforts that follow suit. When getting dropshipping service, the flexibility that it has to offer is a big plus and a meaningful consideration.
MORE FOCUS ON MARKETING:
The biggest plus of getting dropshippping services is it allows you to give all your attention, energy and resources towards marketing effort. As you do not hold a stockpile of goods yourself, you do not have any workforce to lead plus you do not have to spend time on things that do not account for your business productivity, you pay attention to giving quality customer service. With you spending more of your time on market research, consumer behaviour and products’ identification, your e-commerce business is expected to bear fruit.
ELIMINATION OF MIDDLEMEN:
As you are working directly with a supplier and manufacturer, you get rid of the middleman that cost you a lot in the conventional supply chain business. E-commerce startups are getting dropshipping services keeping in consideration this massive financial advantage that they have even before reselling the product to your consumer. All you have to do is pass your orders and dispatch information to the supplier, and the products will be dispatched directly to your customers.
PROFITABILITY AND PROMPTNESS:
Whether you are selling on eBay, Amazon or your e-commerce site, you are working for money that we call profit. When you are getting dropshipping services from a trusted and genuine dropshipping service providers who are importers, manufacturers, wholesalers and suppliers, you buy products at the cheapest rates while resell them at retail rate securing decent lucrative margins for yourself. Furthermore, with the timely transfer of customer order information to the dropshipping company, the products can be delivered at a fast pace ensuring customer satisfaction, good customer experience and brand’s goodwill.
The reasons mentioned above are why most of the e-commerce startups are getting dropshipping services. Having said that, there is a word of caution because whatever you are doing, you have to invest your time and energy properly to get the intended results. The same rule applies to dropship products for eBay and Amazon. Your online presence, active participation for your eCommerce products, precise coordination with the supplier will ensure greater customer feedbacks and growth for your online endeavour.