Are you planning to enter a business this 2019? Or you want to continue growing your business? Then, it is now the perfect time for you to consider dropshipping.
In 2019, it is expected that dropshipping will remain to be profitable and it is a good idea to take advantage of it for your own business. Thus, it can be quite easy for you to obtain high profits.
When you still doubt the profitability that dropshipping offers, it is better for you to have a better understanding of this business strategy.
What is the truth about dropshipping?
Dropshipping refers to the order fulfillment strategy wherein the retailers do not need to keep their products in inventory. Instead, they will rely on the manufacturers or retailers to ship the order to the customers. As a result, more and more online merchants are getting attracted to this kind of arrangement.
As the customers place their orders for the dropshipped products, the retailers will receive the orders and the payment for the orders. Then, they will manually or automatically contact the manufacturer and wholesaler, issue the purchase order for the particular item and provide the shipping instructions directly to the customers. Here, the manufacturer or wholesaler will ship the product, and the retailer will earn the profit. See the advantage?
What makes dropshipping attractive for many ecommerce entrepreneurs, neophytes or even young business enthusiasts? It is the low entry barrier as well as the zero need for the physical inventory. In dropshipping, the suppliers will send the orders directly to the customers generated by the middlemen. In other words, customers will be the one who gives and pay you the money to shop for them. As simple as that!
Advantages of dropshipping business
If you want to make your 2019 profitable, the dropshipping arrangement is recommended for you. So, as you plan to consider dropshipping as part of your business operation, what advantages you might encounter?
Market more quickly
Remember, if you have an efficient business operation, you can have a better opportunity to gain more profits. Through dropshipping, it becomes easier and faster to come to market.
Dropshipping can help you eliminate waiting times when the products are shipped from the manufacturer or distributor to the retailer. It can make you start selling the products the moment they are being published on the ecommerce site. Meaning, you can quickly earn profits, and you are creating an edge away from your competitors.
Reduced product investment
When retailers or merchants employ a dropshipping strategy into their business, they do not have to worry about keeping the products in inventory as mentioned above. Also, the dropshipping agreements do not require any form of upfront investment. So, this means that you can effectively reduce the product investment, as well as ecommerce startups, do not need a vast amount of money just to let them operate and sell.
Explore new products
Dropshipping can give you the opportunity in testing new products even without having to bring an inventory. By exploring new product lines, you have the chance to determine which one is more profitable or in-demand to the consumers.
For example, you are selling apparels, clothing or accessories with English style. Then, you received a request for Western-style accessories or clothing. Through the dropshipping with a distributor or manufacturer of the Western style products, you are allowed to explore how well these products would sell even without overwhelming dollars to the test.
More product offerings
One of the best ways of attracting more customers is by providing a broad product offering. As long as your customers or clients find your business with lots of options, they are more likely to explore in purchasing your items, and they will not have a hard time finding the product that can suit their needs.
Dropshipping allows you to offer more products for sale as compared to the arrangement where you need to inventory everything. By having extensive product options, it can benefit your marketing. This is because each of the product pages can serve as a landing page, you can obtain a better way of introducing a better number of potential customers to your store.
Just imagine that you are selling a sportswear both online and physical store. In a boutique, you can have limited space for storing the products; therefore you might offer several pieces only. But in online set up together with dropshipping arrangements, you can provide dozens of various options, from colors to sizes to designs.
Through dropshipping arrangements, the retailers do not receive, store, stack, pack, ship or pull products. These tasks can only consume most of your time, instead of allocating them into more essential business matters. Therefore, dropshipping is an advantage if you want to save time.
For example, you have a startup ecommerce business where you will also function as a box packer, the additional time you spend in performing the task can be converted into an available time to sell products. This is possible when you consider a dropshipping arrangement. For more extensive operations, time savings also means reduced and stable labor costs.
Flexibility to sell products
The dropshipping arrangements offer significant flexibility when it comes to business operations. You can effortlessly run your business anywhere and at any time as long as you have an Internet connection. With the help of the Internet, buyers can communicate directly with the store owners or manufacturers.
As dropshipping method provide you flexibility, you can quickly build a partnership with multiple suppliers or manufacturers while selling more products to your customers. Apart from that, the manufacturers can also benefit because they can obtain more product movement.
Leverage your business
One of the main reason why many ecommerce entrepreneurs or even neophytes consider a dropshipping arrangement is mere because they want to leverage their business. You have to be aware that in a business set up if you can multiply your money, effort and time, it merely means that you are on your way to leverage. If you consider offering a dropshipping arrangement to your wholesale customers, you have a better chance to establish a stronger relationship with your buyers since they know how efficient having a business transaction with you.
Also, make sure to have a dependable and reputable dropship wholesaler who will handle the shipping for you. This can help you balance the entire business operation as well as reduce potential issues.
Now that you know the advantages you can get from a dropshipping arrangement, there is no way for you not to make your business more profitable this year. You can effortlessly earn more profit.