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Why Dropshipping Is a good Idea?

Posted by Cindy on 1/26/2016 to Dropshipping
Drop shipping is an order fulfillment strategy where the retailer does not keep products in inventory, but relies on wholesalers or manufacturers to actually ship orders to customers. This arrangement has several advantages that make it attractive to online merchants.

When a customer places on order for a drop shipped product online, the retailer receives the order and payment for the order, and then either automatically or manually contacts the wholesaler or manufacturer, issuing a purchase order for the item and providing instructions for shipping directly to the customer. The wholesaler or manufacturer ships the product, and the retailer earns a profit.

Inventory:

Since you are not pre-purchasing the merchandise you are able to offer your customers a much larger product selection.  No Storage needed and no dead stock!

Location:

Because you do not need to store inventory, there is no need for a warehouse or retail location. You can drop ship from anywhere that you can take a Laptop. Saves you money on packing materials because you have nothing to pack

Investment Loss:

There isn’t any because you only buy what your customer has already purchased… you have immensely reduced your financial risks. You create your own profit margin            

Saves you time:

Because you do not have to manually fulfill each order, you have more time to highly scale your business.

Target your customers:

Drop shipping allows you to target a particular consumer or an endless spectrum of consumers by not limiting yourself to a fixed selection of products.

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