5 Top Benefits of Dropshipping

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Advantages of dropshipping

What is Dropshipping?

Based on Wikipedia’s definition, dropshipping is a supply chain management method of business in which the dropshipper doesn’t keep goods in stock but instead transfers the customer orders and shipment details to either the supplier, who then ships the goods directly to the customer. As in retail type of business, the majority of sellers make their profit on the difference between the selling price and the buying price, but some retailers earn in commission an agreed percentage of the sales, paid by the wholesaler to the retailer.

Benefits of Drop Shipping:

  1. The capital to startup is relatively low:

You don’t need big thousands of dollars to start a Drop Shipping business.
It’s very convenient to run this business because you won’t have to deal with an inventory. The most hardest part of the road of starting a Drop Shipping business is getting a reliable suppliers. Once that challenge is solved, doing the business requires little effort and a lot of commitment.

You are making a profit with a very low overhead:
This business could be as easy as running it in the comfort of your home.
In there’s no need for owning a warehouse or facility of storage or overhead cost that comes with owning a warehouse. Most times, you can start the business without employing a staff.

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The location for doing the business is flexible.
In short, you do not have to be at your home to carry out your Dropshipping business activities. Only, what you need are the internet connection and your gadget eg a smartphone and laptop.

You can decide to divert profit for your other business. Drop Shipping is not the type of business that requires capital for expansion.

You will depend on business opportunities and suppliers for expansion.

Benefits of Dropshipping
Benefit of the dropshipping

2. The Risk is Low

A major benefit of the dropshipping business model is that you don’t need to pay for stocks upfront, your work is only to transfer the order back to the supplier when it is made.

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You Don’t need money to switch in hot trending product or change customer buying patterns – there’s no inventory involved, any time you can decide to stop or continue the business or can switch to tends without fear of losing your hard-earned money due to unfulfilled inventory

There’s no cost linked with managing inventory


3. Lowered costs overhead


At any time you can decide to change the product in your store without losing money.
Product Supplier are overly friendlier on shipping costs to drop shippers than customers buying to go resell directly

4. Convenience

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All hassle of packing of items to preparing them for shipment is taken care of by your supplier.

You can add new items to your store very quickly, and also you can test new markets and products conveniently

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