Pros and Cons of Drop Shipping
There are very few peoples that actually know about dropshipping and may have never even looked into how online businesses work. The new one is looking to break into the e-commerce scene, the process of drop shipping may feel a little intimidating because it is difficult to find a reliable source that tells everything to need to know.
Understanding Drop Shipping:
In simple words, dropshipping is a type of business model that enables a company to operate without maintaining an inventory, owning a warehouse to store their products, or shipping their products to the customers themselves. The process of drop shipping includes the following steps:
- An order is placed by the customer for a product on the retailer’s online store.
- The order is manually or automatically forwarded along with the customer details to the dropship supplier.
- The supplier packages the product and ships the order directly to the customer in the retailer’s name.
Benefits of Drop Shipping:
Not Much Capital Is Needed:
In Drop Shipping there is not much capital is needed to invest. It requires extremely little capital.
Easy to Start:
Drop Shipping is very easy, unlike other businesses. You do not need to deal with physical products.
Run From Anywhere:
The Drop Shipping business can be operated from anywhere and does not need a physical location. In Drop Shipping, you just need to have the best Internet Connection.
Wider Range Of Products:
In Drop Shipping Business, you are not required to pre-purchase the products you sell; therefore, you can offer an array of products to your potential customers.
Low Overhead:
In a drop shipping business, the overhead expenses are also quite low because you do not need to deal with purchasing inventory or managing a warehouse.
Disadvantages of Drop Shipping:
Just like other businesses, some disadvantages come along with many advantages of drop shipping. The following are some points that may link to the drop shipping disadvantages.
- Even when it is the supplier’s fault, the entire responsibility falls on you.
- If anything goes wrong. There is significantly a lower level of control in the dropshipping business because, for customers, the smallest things often count the most.
- There is always a possibility of issues due to delays in the shipping of the products.
Just like other businesses, dropshipping is not just perfect. Once it gets started and becomes a little stable, it can be turned into a money-making machine that only requires a little bit of input.
