Traditionally, E-commerce ventures needed an extensive investment, which is one of the reasons many retailers keep away. This might also be the reason why you haven’t set your ecommerce business on course. If you are having second thoughts about costs of investing and initial set up fees, then it is time to bid farewell to your fears with drop shipping.
What is Drop shipping?
This is a supply chain management technique in which you as the retailer does not keep any goods in stock. All you need to do is to transfer your customer orders to the drop shipping company, which ships the goods directly to your customer.As in all businesses, you make your profit on the difference between the price from the company and the retail price. As a retailer, you only show items on display on your online store, so that customers can inspect the item before purchasing it.
Why Consider This Marketing Model?
There are several benefits of drop shipping that you enjoy when you work with us. These include:
- Eliminate the need for upfront inventory. This eliminates the need for renting storage space.
- You only pay when the customer pays. This means you always have a positive cash-flow cycle.
- It eliminates duplication of effort. With this model, the drop shipping company handles storage, packing and shipping of products. This reduces your total inventory management and shipping costs.
- You don’t have to break the bank to start the business. The whole plan makes starting a business very convenient and pocket-friendly. You don’t have to pay for inventory, renting storage space, buying packing materials or employing staff for maintenance.
- It provides for easy management. You have no inventory to manage, which gives you the chance to focus on marketing.
- You can experiment with a wide variety of products without any risks. You can cater for as many products as you want without putting your cash at risk. If it works, it can increase your earnings drastically.
- You have no location restrictions. This model allows you to operate your business from any part of the world as long as you have a computer and an internet connection.
- If your product does not move, you have no worry about piled up stocks and expiring goods.
These benefits add to the appeal of this form of marketing. Well, we have the products, all you have to do is find a buyer, and you get to enjoy the profits.
In summary, a drop shipping company gives you the chance to start and sustain an E-commerce store without physical inventory. This reduces the need for inventory management and shipping, which reduces your responsibilities while giving you all the profits.REQUEST QUOTE