Drop shipping is a type of retail where the retailer does not store the stuff in their inventory but instead passes the customer’s order and shipping details to the wholesaler. Drop shipping is an ideal system or technique for anyone who wants to enter the multi-billion dollar e-commerce industry, but they do not have much money to invest initially or do not have the resources to store physical products.
Then the drop shipper will be responsible for packaging that product and mailing it directly to your final customer, saving you valuable time that these types of activities require.
Drop shipping is a very convenient system, which if you wish, can operate entirely on the Internet without having to have stored physical products and without having to make the regular daily trips to a post office to send the products to your customers.
Benefits Of Dropshipping Business
There is no doubt that the advantages of this system are innumerable. Here are the main reasons why you should consider using:
Low Capital Requirements
Not having to store the goods, you save a lot of money in physical and personal space. A large part of drop shippers that exist in the market does not charge a subscription value to use their services. However, many will cost you an annual or lifetime amount that can be around the US $ 50 / US $ 100. Some people are tempted to use only those who do not charge anything and fail to take advantage of the excellent benefits of those who do charge a subscription. But as you can see, what they cost, is a shallow value that you can recover in two or three orders from your customers.
Compliance Product Delivery
Your drop shipper picks, packs and ships orders to your customers, saving valuable time that all these activities require.
No Minimum Purchase Is Required
The system drop shipping can only buy a product if necessary. You do not have to worry if you sell one copy of one type of product at a given time. This advantage allows you even to have several drop shippers working at your disposal helping you to have a diverse catalog of products or multiple niche stores (stores specialized in a particular subject).
Disadvantages Of The Dropshipping Business
As in any business, in addition to the positive aspects, there is a more negative side. Here I mention some drawbacks of this system (fortunately nothing severe and straightforward to overcome once you know how. Violation of the terms and conditions of some pages of online sales: The terms of use of many pages of the auction or Classified, do not allow to sell products that are not physically in stock. The funny thing is that approximately 40% of people who sell on these pages use the system Dropshipping. Just clarify in the auction or announcement that the product may “perhaps” be sent from the manufacturer or distributor. Insufficient knowledge of the product: Since you’ve never seen the products you sell under challenging situations will answer questions that your customers do about them. In many cases, you can get information about the product on the page of your drop shipper, but often the description and photographs you will find will not be enough to know all the details about the product. It is advisable to contact the drop shipper and ask any questions that may arise from your client.
Responsibility For The Actions Of Drop Shippers
If your drop shipper runs out of stock, sends the wrong product, is slow in complying with the order, or experiencing similar problems, you and only you are responsible. You will be the one who has to apologize to the client and offer a solution that is to their liking.
Increased Competition
Not being the only person using the services of drop shippers, there will be many people who sell the same products as you on the same pages as you. This is where the cunning and ability of each salesperson to overcome the competition.
