Did you consider starting an online store and yet you’ve chosen not to because you were afraid of all the startup costs etc. What would you do if somebody offered to pay the up-front inventory costs on your products while managing the fulfillment operation? It would be undoubtedly easier for you to get started and you’d be able to run your brand new business wherever you are. Did you know that this isn’t a dream, but a possibility; it is called drop shipping. Let’s learn a little bit more about it!
Drop shipping is actually a retail method which doesn’t involve keeping your products in stock, but partnering with wholesale suppliers that stock their own inventory. As soon as you transfer order and the shipment details to a wholesale supplier, they sheep the package to directly to your customers. Basically, it means that you can run your e- commerce store without worrying about inventory or fulfillment issues. The best part about it is that your clients and customers won’t realize you’re drop shipping; “private label shipping” would let you ship from the wholesale supplier with an invoice and return address customized to your own online store.
What are the benefits of drop shipping? First of all, you don’t need a lot of money to get started selling online. Without investing heavily in inventory, you’re still able to offer thousands of products to potential clients and customers. To successfully launch and grow an e-commerce business, a lot of work is required, particularly in case of limited resources. With drop shipping you do not have to worry about fulfillment, which makes leading your business more convenient, efficient and effective; you are free to concentrate on improving and developing products, marketing plan and advancements in customer service. As a freelancer, I especially like this benefit of drop shipping: it enables you to operate your online store no matter where you are because the physical fulfillment problems are handled by a wholesale supplier. The only thing you need is an internet connection. Finally, drop shipping is a trusted model used by some major retailers.
Nevertheless, drop shipping isn’t perfect; there are still some issues with this e-commerce method. But, with some awareness and careful planning, these weaknesses can be overcome. Awful margins and loads of competition come with drop shipping, that’s true. However, if you want to be successful, you shouldn’t try to compete on price, but to offer value in some other way. For example, opt for top-notch product selection, service or education. Also, it’s hard to sync inventory and that can lead to out-of-stock products. How can you solve this issue? It is better to work with multiple suppliers instead on relying on a single one; having more suppliers multiplies the likelihood that your products will be in stock and ready to be shipped. Nevertheless, at least once, you’ll sell an out-of-stock item. What should you do then? Don’t cancel the order, but send your customer an upgraded product free of charge. This won’t make you earn money on this order, but chances are you’ll build a loyal brand advocate.
If you want to star your very own drop shipping business, check out Dropshipping Suppliers On Demand – Best Wholesale Dropshippers Service; you’ll be given a proper start for your own drop shipping business.
