Compelling reasons to venture into dropshipping

18 Jun 2019 @ 6.02 pm
| Business

Thirty-three per cent of online stores prefer dropshipping as a means to fulfil orders. This is based on a report by AmeriCommerce. Efficiency in ordering, navigation of online stores and timely delivery of good and services is a crucial component of running a successful online business and guaranteeing customer satisfaction. Dropshipping is a very attractive venture that is cost-effective, simple to manage, suitable for both large and small companies and carries minimal risk. It is a great venture that offers the flexibility and practicality that other businesses cannot guarantee and a convenient way to make money.

It is simple and favourable

Dropshipping makes it convenient for businesses to deliver products and services to their customers. The fact that the business owners do not have to worry about sourcing products, shipping, and packaging products makes doing business via dropshipping quite simple. The use of e-commerce storefronts and dropshipping apps like Oberlo help to streamline the process. It is easy to monitor processes like importation, order tracking and even changes in prices from your app.

With the help of a reliable shipping company, you can run a successful Dropshipping business from the comfort of your home. The work of your shipping company is also cut out since they do not have to worry about marketing and promoting your products. You also have the option of working with multiple wholesalers simultaneously.

Minimum risk is involved

The fact that you can start a dropshipping business by getting a domain and hosting makes venturing into it less risky. It also offers a risk-free opportunity to test new products. Lack of sales is something every entrepreneur worries about; therefore, being able to test new products without investing your time and money saves you the risk of suffering a loss, and it allows you to experiment on new products and assess the probability of making profits from introducing them to the stores.

Scaling is also quite easy when it comes to dropshipping. The fact that it requires minimal costs to start and run it makes it cheaper and less risky to introduce a new product to the store and also face out products that are not making profits. Companies looking to sell products outside their niche can do that using dropshipping without the need to invest in the production of that product.

It is cost effective

It can require quite a lot of resources to start and run a business. Without securing investments, your dream to start a business might remain just a dream. The ability to lower the costs of running a business can help to improve your revenue and dropshipping can help you do that. With dropshipping, your shipping costs are reduced, the costs of maintaining a warehouse are eliminated, and due to the large volume of goods, you can also negotiate for lower prices of delivery and returns.

The business also has a low barrier to entry since one does not have to pay for the product or service upfront; you will only be obligated to pay for the domain and hosting charges. You can also easily sell your own products together with the best-selling items in your store, hence saving your marketing costs. In addition, no excess inventory means the chances of losing revenue is minimised.

It manages seasonal surges

During seasons with a high volume of sales. For example during holidays, dropshipping can help the online store to provide the best possible service to their customers. Retailers can use the services of a dropshipper to handle the orders they cannot meet. This move ensures that your customers are satisfied without overwhelming your stuff. Dropshipping seasonal products is a smart business strategy; you get a chance to offer customers a wide variety of goods during the holidays, and once the season is over, the remaining inventory will not be your problem.

The opportunities are limitless

Dropshipping is continuously growing; new ideas come up every day, and this gives entrepreneurs a chance to venture into a field where they can mould their business into a unique and competitive enterprise. Finding the right niche is vital and since new products and gaps in the consumer industry emerge frequently, you can find something that coincides with your passions.

Technological advancements in communication, transport and logistics services make dropshipping very exciting. It allows entrepreneurs to meet the demands of markets that were previously inaccessible due to constraints in terms of internet availability, the affordability of products and the presence of efficient transport networks. With the efficient use of technology, you can create an attractive dropshipping store that will compete well with the already established stores.

The flexibility of dropshipping makes it worth trying; you do not have to use it all year round, and as your business grows, it will still serve you efficiently.