Advantages of Drop Shipping for E-Retailers

Drop shipping is a method of order fulfillment where the retailer, instead of keeping products in inventory, depends on manufacturers or wholesalers to actually forward orders to customers. If you're an online merchant, you will benefit from this form of order fulfillment in five major ways: Check it out!

You can sell more products.

Drop shopping allows you to sell more products that what you can feasibly do if you were to take care of the inventory yourself. Let's say you want to sell baby clothes in a boutique and online. Because of the space limitations of a traditional store, you will only be able to sell up to a certain amount of clothes in your boutique. If you sell online and do drop shipping, there will be no restrictions as to the volume of items you can sell because you won't even have to keep a physical inventory.

You can get products on the market faster.

With drop shipping, you don't have to wait for the distributor or manufacturer to ship products to you. This traditionally takes weeks, which means it will take longer for you to get on the market. Drop shipping, however, allows you to sell items as soon as they are published on your ecommerce site. Click here to read more.

You can sell new products without spending a thing.

Drop shipping gives you the opportunity to test new items without spending money to bring in inventory. Let's say you're currently selling organic baby clothes mainly made of cotton, and a new line of organic baby clothes made of another material is introduced. You can sell those new products and test whether they will "click" with your market, without having to commit hard dollars.

You need less capital.

Because drop shipping doesn't require you to make any upfront investment to bring in inventory, you can considerably reduce your investment in products. In other words, you can start your own business without having to spend a lot of money. Just set up your online store, establish drop-shipping arrangements, and that's it.

You can save time.

Finally, drop shipping quite simply allows you to have your own retail business without all the hassles of running one the traditional way. Basically, you don't have to handle products at all, which means you will be able to save a great deal of time. Whatever time you can save can be spent exploring more products to sell, thereby increasing your potential profits. Of course, in bigger operations, any time savings can lead to lower and more predictable labor costs.