5 Business Advantages of Drop Shipping


Considering whether to get into the drop shipping business? To help ease your decision making process, here are 5 reasons why you should get into drop shipping:

Reduced costs

The main point of drop shipping is to not have to deal with any inventory. And because there is no inventory involved, you can start selling without having a large amount of early investment. You do not need to bother with setting aside any capital for inventory, nor do you need to worry about the risk of having to spend money on excess stocks. Simply put, starting a drop shipping business does not require as much investment as a regular eCommerce business, as one might think.

Wide range of product offerings

With drop shipping, there is an endless amount of products out there that you can choose from to sell. Not having to limit yourself to only a few models, sizes or colours of a product because of limited storage is one of the perks of being in the drop shipping business. All you need to do is list the products that you want to sell on your website and you can leave the rest up to your supplier. Having a wide range of products to offer also helps with your marketing efforts. This is because more products means being able to set up more landing pages, meaning more pages for Google or other search engines to index. 

Save time

Another problem with having an inventory is having to deal with organising and preparing it for when a delivery needs to be made which can be very tedious. Instead, the time spent doing that can be used in a more productive way such as actually selling your products and growing your business. Hence, with drop shipping, no time is wasted on inventory.

Risk-free product testing

When adding new products to your product range, there is always the uncertainty of whether the product is going to do well or not. And if it does fail, you are left with excess stocks. With drop shipping, you can safely do a product testing for a new product without having to worry about the risk of having any excess stocks if the product does fail. All you have to do is take the product down from your site. No excess stocks means no money wasted.

Start selling immediately

For a regular eCommerce business (by regular we mean businesses which hold inventory), before they can start selling a product on their site, they would have to wait until the items are shipped and delivered to them. This could take days or even up to weeks. Again, this is time wasted. However, with drop shipping, the product can be sold the moment you decide to start selling it.Source: strategy-plus.net; practicalecommerce.com; multichannelmerchant.com