Have you ever heard of dropshipping websites? Well it’s the latest advancement in supply and demand. It uses a third party warehouse to save you the hassle of stocking the products you want to sell to your customers. That sounds pretty awesome, right? Let’s take a look at some of the benefits of dropshipping.
1) No More Unsold Items
With the dropshipping method,you’re purchasing on an as-needed basis. You don’t hold any physical inventory. Instead, all of your inventory is through the warehouses and suppliers themselves. This means you don’t have a bunch of stock sitting around. If an item doesn’t sell, that’s fine. You don’t have anything to get rid of. But if you buy up stock, in the traditional method, you may end up with a bulk of products leftover. These leftovers, of course, are simply as waste of the money you’ve already spent to stock them.
2) Unlimited Inventory
There are benefits to using multiple suppliers, such as being able to offer more variety. If you choose to work with multiple warehouses and supplies, you can offer your customers almost anything. You’ll be bringing your customer the widest variety of products available. All from one convenient location: You. All you have to do is list the products on your personal website. You no longer have to worry about having the space available for your inventory, either. This is because you will have no physical inventory. It doesn’t take as much effort to list a large variety of products for sale as it did to manually purchase those same products. This puts you in a higher rank regarding competitors as well.
3) Product Availability
You’ll want to make sure that you’re always offering products that are in stock. You, personally, will have to keep tabs on the inventory and availability of your suppliers. Unlike having your own inventory, which you would know the status of, the inventory at your warehouse fluctuates constantly. This means that an item that was in stock a few hours ago may not be in stock when your customer goes to make a purchase. But, many suppliers have an easy method of providing you with the most recent inventory listing. So, it’s fairly easy to keep track of what is in stock and what isn’t.
4) Test New Products/Brands
With a traditional stocking method, you may be hesitant to try new products or brands. You wouldn’t want to waste money on something that won’t sell is or poorly put together. But, with the dropshipping method, you are free to take risks. Because it doesn’t cost you anything. You can explore new products and even new brands, offering the same options to your customers. If the products don’t sell well, you can simply stop listing them for sale through you. But you don’t have to worry about wasting the initial put-out costs.
5) Product Fluctuation
Everyone knows that trends really determine the sales of many different products. Trends can be hard to keep up with, regardless of what industry you’re in. There has been everything from trending office supplies (if you recall the bejeweled everything) to fashion trends. When you’re buying up stock, it’s hard to have the latest trend available. With dropshipping websites, you can offer whatever is hot and fresh, never worrying about your excess supplies from the last trend that has ended. This means you can keep up with whatever is making the most money.
6) Low Start Up Costs
The cost to starting a dropshipping business is very low. This is because you don’t have to purchase an inventory before you get started. Instead, you can put your initial focus into listing available products and promoting yourself. You can put some of those would-be start up costs into advertising your store. The options are wide open when you have such a low start up fee. How low? The cost can be as little as paying for a website domain! It’s really that easy.
7) Low Maintainability
Purchasing your orders on an as-needed basis saves you a huge overhead. You won’t have to worry about a warehouse of your own. Or a storage unit. Or, however you would traditionally store your stock. The dropshipping method also saves on the cost of supplying, because there isn’t one. Instead, you can focus simply on the demand instead of the supply. You don’t have to put a lot of effort into maintaining a dropshipping website, either. Simply keep on top of updating product availability and listing hot new items for your customers.
8) Easy Shipping & Returns
When a customer makes a purchase through your store, you simply send the order to the warehouse. The warehouse will package and ship out everything directly to your customer. You can say goodbye to the struggle of shipping. The cost of shipping out items can vary when you’re using the traditional methods. Through dropshipping, the cost is simply displayed and paid. No hassle.
This makes it easier for returns and damaged goods as well. Although, if you’re using multiple suppliers, there are also complications. If a customer buys three different products from you, but each of those products comes from a different supplier, you’re required to pay three times the shipping. You don’t want to make your customer pay those shipping fees, because they will feel overcharged.
9) Shop Mobility
You can start a business from anywhere. You can handle your business while you are travelling. Your items will still be shipped out to your customers, even if you are no where near home. This means that you will never have a loss of business due to travelling. You will also never have a shipment delay because you were too busy to get the package in the mail. All you have to do is place the order with your warehouse or supplier and let them handle the dirty work. It’s fairly easy to do this and it only takes a few minutes.
10) Better Customer Relations
Your customers will thank you for being a dropshipping website when they can get everything they want from the same source. This will help build and grow your popularity among competitors. Although, since dropshipping is so cheap to maintain, there are more competitors than the traditional stocking methods.
You want to build good client relations in order to set yourself apart from the other dropshipping websites. Another reason customers will appreciate shopping through you is the quick shipping. Since it will no longer be in your hands, customers are more likely to get prompt shipping. There is less margin for errors on the delivery or the products. It’s easier for you and it’s easier for them.