What Is Dropshipping And How Online Retailers Can Benefit From It?

What Is Dropshipping And How Online Retailers Can Benefit From It?

The first thought that you want to launch an online store and be the front-runner. But the same line of thought takes a period, when you start jotting down the products: like what will you sell; where will you get it; and how will you get it delivered to your customers.

Thresholds like sourcing, inventory management, order fulfillment and shipping are those bricks without which amazing marketing strategies and outstanding customer services fail to pay off.

But is it that grueling, implausible or boring? Your next read on Dropshipping will slash your hassles down.

What is Drop Shipping?

Dropshipping allows store owners to fulfill the orders of the customers directly from a wholesaler or manufacturer. That means that you don’t have to worry about inventory management or shipping; you simply transfer orders to a dropshipping partner who handles all of the inventory and logistics.


How Can Dropshipping Help Online Retailers?

  • Minimum Capital Overhead

No money? No problem. Just get started with a small amount. Dropshipping lets you launch without investing a lot of money. Traditional retailers will need to buy and store a list of items in stock. But dropshipper, can offer a full catalogue of products with little overhead.

  • Zero Hassles; Sell More, Work Less

With dropshipping, you don’t have to bother about on-hand inventory, meaning you get rid off from handle packing or shipping. This way, you save your precious time for marketing and other business handles that promotes your growth.

  • Easily Expand Your Business Offerings

Dropshipping is a great way to expand your business offerings and test the new products with your audience. This way you can get a clear market hint, if your products are going to play well amongst them or will be a flop offering, and all this will happen without having to invest in large amounts of expensive inventory up-front.

Common Dropshipping illusions Online Retailers should Avoid:

  • Depending On One Supplier

Depending on one supplier and relying totally only on one is not a good bet. This way you end up yourselves in the quagmire of logistical issues. There can be multiple crisis that will lend you kneel down the line. Few of the mishaps that happen unluckily are: .

1. If the supplier unexpectedly announce a price hike, you can’t afford.

2. If the supplier abruptly decides to not to work with you any more.

3. Or even at the less severe end, if the products goes out of stock and you’ve no idea when they’ll get back in stock.

That’s why it is very important to have a backup supplier and to note that whatever products you deliver is of top quality, has a good packaging and ships on time.

  • Grueling Over Shipping Rates

Dealing with Shipping rates on every order is a very daunting task. This becomes even worse when an order draws from two different warehouses or multi suppliers. So, instead of stressing over multiple suppliers, step ahead with a bigger picture in mind.

Get Clarity Over:

“ What are you trying to achieve? Sales, happy customers and increased retention? OR only lucrative shipping rates? ‘’

If the former one gives you satiation then here is your cheat sheet.

1. Scrutinize your past orders.

2. Use them to work out on a flat shipping rate.

3. Freeze those rates.

It will definitely cut your profits on some orders. But, you will even out over a time, if you’ve set your flat rate properly.

Study reveals, 80% of the customers abandon shopping carts just because of hefty shipping charges. And the sites which have witnessed highest conversion rates are the one providing free shipping charges.

To sum up, a flat shipping rate plays all the game-winningly.

  • A Misconception That Products Will Sell By Itself

Dropshipping is not a cakewalk where your products will sell by themselves. You’re selling the same thing as others are. So why and how the people will end up coming to your door?

When you’re dropshipping, you need to put all of the time that you save on shipping and fulfillment into marketing and SEO.

These are the two strongest elements that will drive results and make your sales better.

Isn’t dropshipping a wonderful idea to start and scale an eCommerce store?

Automate Your Business Routine Through DropShipping Integration


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