Dropshipping is a fulfillment method that has numerous pros and benefits. It is easy to use, scalable, affordable, and it helps you to create a successful eCommerce shop/store without the threat of carrying inventory or even making big investments.
In this article, we are going to explore five pros of using dropshipping in your online shop/store – they include things like:
- You don’t need to invest in any inventory
- It’s easy to setup
- Highly scalable
But before we’re going to dive into detail, let’s first go over what dropshipping exactly is:
What Is Dropshipping?
Dropshipping is a business model that allows you to sell and ship products you don’t own and don’t stock.
How Does It Work?
Your suppliers – wholesalers or manufacturers – produce the goods, warehouse them, and ship them to your customers for you.
The process is simple:
– You get an order
– You forward the order to your supplier
– Your supplier fulfills the order
Let’s take a look at the pros of dropshipping.
Pros of Dropshipping
1. Low Startup Costs
One of the primary advantages of dropshipping is that you need very little upfront capital. Indeed, you can relax now as you do not need to risk your life savings or college fund. This is because, as you’re fulfilling orders straight from a supplier like mydepot.com, you don’t need to have any stock at all. You don’t have to buy stock you might not even sell, and you do not need to spend to ensure that it stays in a warehouse. This is all taken care of by your chosen supplier, almost eliminating all the risk.
2. Low Order Fulfillment Costs
Order fulfillment usually requires you to have a warehouse, package and ship your orders, track inventory, handle returns and inbound shipments and continually order products and manage stock levels. Dropshipping lets a 3rd party take care of all of that. Your only job in this arrangement is to make sure they get your customer orders. Everything else will be handled by them.
3. Low Cost of inventory
The cost of inventory is among the highest costs you will have in case you own warehouse stock. You might end up with obsolete inventory – driving you to identify methods to decrease your stock – or maybe you will end up with not enough inventory – resulting in stockouts and dropped revenue.
Dropshipping allows you to stay away from these problems and concentrate on growing your customer base and building your brand.
4. You Can Run It Anywhere
As you do not have anything physical to deal with, one of the pros of dropshipping that really appeals to people, is that you can run it from anywhere in the world with an internet connection.
That suggests you are able to be sat on the shore, drinking a Coca-Cola, plus so long as you are able to communicate with your suppliers and customers, you can run and manage your business.
5. It’s Easy To Scale
As compared to the traditional business model, the more orders you receive, the more you’ve to do. One of the dropshipping pros is that this doesn’t happen. That’s because your dropshipping supplier is taking care of all the fulfillment and orders. When more orders come in, your work stays the same. This allows you to expand and grow your business easily. All you have to do is scale your marketing, whether that’s scaling your Google ads, Facebook ads or social media activity.
If you’re feeling overwhelmed with starting your own store, don’t worry, we get it. Mydepot dropshipping takes care of everything for you, so you can scale as fast as you want the money to come in. Why wait to make your goals and dreams a reality, sign up to Mydepot now.