Drop Shipping Business 2020 – A retail fulfillment method where a store does not keep the products it sells in stock, but rather purchases the item from a third party and has it shipped directly to the customer when it sells is known as drop shipping. This implies that the merchant does not see or handle the product.
Benefits of Drop Shipping
Drop shipping comes with some benefits that you can take advantage of for your business, let’s see them.
Since you are not the one purchasing inventory or managing the warehouse where your goods are stored, your overhead expenses will be quite low.
Scale Through Your Work Orders Easily
You can easily scale through most of the work to process additional orders since they are borne by the suppliers. This enables you to expand with fewer growing difficulties.
Vast Selection of Products
You can offer an array of products to your targeted customers since you don’t have to pre-purchase the items you sell. As the suppliers stock an item, you can list same for sale on your website with no additional cost attached to it.
Easy Startup – How to start a drop shipping business
Since you are not dealing with physical products it is quite easy to start an eCommerce business. Drop shipping comes in handy in the following areas when you are starting up;
- In handling returns and inbound shipments.
- For managing or paying for a warehouse.
- Continuous ordering of products and stock level management.
- Packing and shipping of orders.
- For tracking inventory for accounting reasons.
Requires Less Capital
One of the most striking benefits of drop shipping is that it helps you as you launch an eCommerce store even when you don’t have thousands of dollars to invest in inventory.
This is because you can actually make a sale and receive payment for it before you purchase a product.
Do Drop Shipping Anywhere, Any time Location
You can run a drop shipping business from just about anywhere once you have an internet connection. All you need to do is communicate with suppliers and customers when it’s necessary and manage your business from anywhere you deem fit.
Is Drop Shipping Really Worth It?
Although not entirely perfect, drop shipping still has advantages that you can benefit from to boost your business. Isn’t it rather ideal to start that small business with drop shipping which gives you room to start with low income, and less overhead cost as well as allows you manage your business from anywhere and at any time?