Dropshipping is relatively a new concept, but a great one! With the enhanced growth of the online business, the entrepreneurs are eager to get engaged into eCommerce for developing a great profit at a low cost.
Dropshipping is among the businesses that require lowest investment.
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 an 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.
Have you tried this amazing profitable business? If not, then give yourself a permanent opportunity to earn a high profit. Here are a few reasons why dropshipping is a great businesses idea:
i) Great Range of Product Offering
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! Dropshipping does not limit you to one supplier.
You can add maximum stock to your site if you manage to contract more suppliers. This is the reason why you must interact with maximum suppliers, so that you can enlarge your product offering.
One supplier may not have the items that your customers are looking for. So, contracting with maximum means maximum range of product offerings. A broad range of products makes dropshipping a cool idea. More products means more landing pages and more marketing options. The customers believe that you are a huge online store that sells a wide variety of items.
So, this improves your reputation among the consumers. For instance, if you are selling self defense weapons on an online store, you will have lack of space to add cosplay items to your store. However, if you are a dropshipper, you can add more and more items because you don’t have to create space for them. So, interact with many stores to have everything onto your offerings list. What a great idea though!
ii) Flexible Location
The finest reason to initiate a dropshipping business is that you don’t require a 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. There is no other business in this world that allows you to ignore the location.
But, this amazing business does. Your dining table can be your office, or your bedroom, or anywhere you are, as long as a laptop and internet connection is with you. You have freedom to access the customers from anywhere in this world. You can communicate with your customer as well as supplier online, so why have a remote location? Take order from the customers online and forward the order along with the customer’s address to the supplier. Then, supplier knows, and the customer. You prevent from shipping, and most importantly, the location.
iii) Lowest Investment
When you initiate any business, the first thing that troubles you is the investment. In most of the businesses, the investment exceeds your budget. But, dropshipping is the business with lowest investment needed to set it up. Perhaps, there isn’t any because you only buy what your customer has already purchased. So, you have immensely reduced your financial risks. In fact, you create your own profit margin.
Hence, no location investment, no need to purchase any product, just build a website and you are off. The beauty of e-commerce is that startup cost is extremely low. Other than a website, there’s nothing you really need to buy. You can display the products on the website (obviously, the products of your supplier) and sell them online, You can have a margin on the price of every product. Get the payment by the customer, cut your margin, and forward the order to the supplier. So, you didn’t have to purchase anything, you just acted as a middleman and gathered some profit.
iv) Save Time and Effort
Every business in this world demands a huge effort and time. You must have seen people putting in a lot of effort to establish and advance their businesses. But, as a dropshipper, you can save both your time and effort. Because you do not have to manually fulfill each order, you have more time to highly scale your business. Also, less effort is needed to be applied on this business.
You can spend more time on working on improvements. You can put in some efforts on marketing and adding content to your site. You would also have additional time to learn marketing and advertising tactics. Plus, you can make your extra time valuable by interacting with more and more suppliers to increase your product line.
v) Enhanced Access to the Market
Any physical or online store that has its own warehouse can target just a few customers because they are limited to one market. Their market depends upon the type of products that they offer. Because of the limited product offering, they are limited to that market. It is almost possible to expand to other markets. For example, if your warehouse includes swords and knives, you can only market your items to this market.
On the other hand, 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. You can market yourself as a store that sells almost everything; Amazon is a great example!
So, you are not restricted to one market. As you contract with a supplier with different items, you can expand your offerings and add those items too. Similarly, you can add products that have a great demand among the consumers, since there is no restriction on you.
To sum up, dropshipping is an incredibly good idea. There is almost no better option when it comes to initiating a new business. There is less investment needed, greater access to the market, unlimited product offering and less effort to be put in. Looking to start a business? Dropshipping Tips for Beginners in 2019, dropshipping is the way to go!