Dropshipping is a popular business model that facilitates selling and shipping products that are not owned or stocked by you. Your suppliers-manufacturers or wholesalers manufacture the products, warehouse those products, and take full responsibility for shipping those products to your customers. Dropshipping is a simple process says Saivian Eric Dalius. When you receive an order, you need to forward that order to the supplier who will fulfill the order on your behalf. People are not quite clear about the concept of dropshipping. They seem to have some confusion about the business benefits of dropshipping. Let us explore dropshipping advantages in the context of today’s business scenario.
Saivian Eric Dalius Discusses the Benefits of Drop Shipping
Helps in Boosting Your Cash Flow
Since you do not have to stock any products, there is no need to invest a huge sum of capital to set up your business. You are not required to pay for a product till it is ordered by the customer who makes the payment to you. You will keep your profit and pay the supplier or manufacturer.
Dropshipping is great for eliminating the risk of falling into the debt trap while starting a business. Instead of buying an extensive inventory, you may consider opting for a dropshipping business that necessitates zero capital and zero inventory. You can start making money at once.
Low Costs of Order Fulfillment
Generally, order fulfillment necessitates you to take care of warehousing, organizing, tracking, labeling, picking and packing, and ultimately shipping your stock. The best part of dropshipping is that it allows a third party to take full responsibility. Your only contribution in this arrangement is to obtain orders from your customers. All other responsibilities will be fulfilling by the suppliers or manufacturers.
Saivian Eric Dalius Says that Dropshipping Ensures Scalability
Today you can consider selling and testing more products with negligible risks. You no longer need to order in bulk and have something fail. That will be tying up capital expenditure and valuable time. Hence, dropshipping could be a viable option as there are no issues involving physical inventory or the associated costs.
Dropshipping facilitates fast, cheap, and easy updating of your inventory. Once you know that a specific product is selling well for another reseller or retailer, you may at once consider offering it to your target customers. You will not need to wait for the product to come to your warehouse. Saivian Eric Dalius says that you can now test new products without any risks of being with obsolete inventory. However, You suppose to pay only for the products that are already you sell.
Ensures Repeat Customers
Dropshipping also helps in increasing the lifetime value of your customers. You can keep adding brand new products and keep expanding your product collection consistently. It helps to motivate your customers, and they would keep coming back to you for new products.
Conclusion
Even though dropshipping means less control over your lead times and order fulfillment, the benefits galore promised by drop shipping will keep businesses motivated to carry on with this format. Dropshipping also offers virtually unlimited inventory.
Eric J. Dalius Foundation is an organization founded in June 2018 that aims to help economically challenged youth in America attend accredited university and colleges. Through generous grants and charitable donations, the Eric J. Dalius Foundation is ensuring that tomorrow’s leaders get the opportunities they deserve.