1. No upfront inventory to purchase
With drop shipping, there is no need to pay upfront for the stock before selling. All you need to do to get into business is to display the products you want to sell on the website – this should be done before any purchase. After receiving the first few orders, these can then be forwarded to the drop shopper through e-mail and then these products will be delivered to the clients. Aside from the money saved on inventory, you also save money from packaging materials and you save up on warehousing and other overhead costs.
2. No need for warehousing
Since a large inventory from the drop shipper is not required, warehousing costs are eliminated, as are the corresponding logistical issues. This is advantageous because monthly warehousing costs cut into profit margin significantly and these charges often lead to losses.
3. Flexibility of the product catalogue
Drop shipping gives the choice of promoting any number of products on the website catalogue. Since there is no need for upfront capital investments, there is flexibility of promoting as many products as possible, as long as the products are all related to the category of products on sale. It is important to strike a balance between the range of products on sale and the ‘product focus’ of the business, meaning the business should focus on a single category of products. It is also possible to remove a product from the catalogue at will.
4. No minimum quantity restriction
Most companies that drop ship do not impose a minimum quantity order, meaning when clients place orders on the website, the orders can be delivered to the drop shipper one-by-one. This provides great flexibility and is beneficial in that you will not lose clients.
5. No product delivery
The drop shipping company takes care of the product delivery and shipment, which is highly advantageous especially if you are starting out. In such a case, you will be able to focus all time and efforts on marketing the business and not worrying about order fulfillment or delivery.
6. Expanded reach
With drop shipping, it is possible to contract multiple websites that sell merchandise and this helps in expanding the reach of the business. You will be able to expose the business at various web outlets and this will result in increased sales and profits.
7. Impressive returns
Since drop ship companies can buy in huge volumes, they are able to offer you the best prices on products and shipping, usually wholesale, and this means you will get impressive returns.
8. Home working
In this business, you do not really need an office and you can work at home. All you need is a computer, internet connection and effective marketing of your services. You never have to deal with the clients or the companies that drop ship.
Looking For Wholesale Dropship Companies?
If You’re Interested in learning how to start a dropshipping business from scratch, without wasting countless hours looking for a company to dropship for you, I have created a site that will get you started in just a couple of minutes. eBay Dropshippers learn more here.
