Dropshipping is a great business model for aspiring seller to start with because it’s accessible, easy and low cost. With dropshipping, seller can quickly test different business idea with limited downside, which lets seller learn a lot about how to choose and market in-demand products. Here are a 5 MAIN benefit why dropshipping is such a good business model.
Less capital is required
Probably the biggest advantage of dropshipping is that it’s possible to run an ecommerce without having to invest thousands of dollars in inventory upfront. Traditionally, retailers have had to tie up huge amounts of capital to purchase inventory and set up a warehouse.
With the dropshipping model, you don’t have to purchase a product unless you’ve already made the sale and have been paid by the customer. Thus, without significant up-front inventory investments, it’s possible to run a e-commerce with very little money. As what we said “ use little money to earn big income”.
Easy to get started
Running an ecommerce business is much easier when you don’t have to deal with physical products. However, with dropshipping + e-commerce business model, you don’t have to worry about:
- Setting up a warehouse
- Packing and shipping your orders
- Tracking inventory movement
- Handling returns and inbound shipments
- Keeping stock and managing stock level
A dropshipping business can be run from just about anywhere with an internet connection. As long as you can communicate with your dropship suppliers and customers easily, you can run and manage your business at anywhere, anytime.
With dropshipping model, you’ll save a ton of time as most of the work to process additional orders will be borne by the dropship supplier. In addition to product listing on your e-commerce store, you can simply copy & paste the ready-made product description that prepared by dropship supplier. Thus, it is a benefit that gives you the ability to focus more time on other elements of your business, like marketing and maintaining customer support channels.
Without the constraints of a physical inventory and the costs associated with it, dropshipping allows you to update your inventory quickly, easily, and cheaply.If you know a product is doing well , you can immediately offer it to your customers without waiting for it to arrive in your warehouse. Put in simple, dropshipping allows you to test new items without the risk of carrying obsolete inventory. You only pay for what you sell.