One of the significant advantages of drop shipping is not having to worry about inventory management and shipping costs. Simply partnering up with sellers that offer the facility will help you save your money and focus all your attention on developing your business. Let’s look at some benefits of drop shipping as pointed by Mark Roemer.
- Exponential Business Expansion- The cost for a drop shipping startup is relatively less compared to other forms of businesses. This is because you don’t have to pay for inventory and shipping.
Once an order is placed, you simply relay it to the seller who delivers the product. You can specialize in a single category of products or experiment with various types and turn your ecommerce website into a full-fledged marketplace. If implemented correctly, you can get a lot done and achieve many things with a carefully created drop shipping business.
- Scalability- Since you won’t have to worry about shipping or inventory, you can expand your business to international borders. With the help of drop shipping, you can scale your eCommerce business very quickly.
- Foray into Newer Markets- It usually takes years and even decades to establish reliable trade connections with other businesses. In addition, you have to continually worry about the well-being and prosperity of your own venture. However, with drop shipping, you can make the transition rather easily. Once you have built a little reputation with the internet community, you can keep adding new products to your itinerary.
Amazon started with selling books, and now it is the largest eCommerce multi-vendor website in the whole world that sells every conceivable household thing you ever need. Although there are other multi vendors out there, none are as resourceful and accessible as Amazon.
They even started a vegetable delivery service and streaming services (Amazon Prime), which goes on to show you can transition into a wide variety of fields as a drop shipper.
- Flexibility- The best thing about drop shipping is that you only require an internet connection, and a decent computer if you design your own website. In reality, you can run a drop shipping business from your living room, or from anywhere in the world.
This is because your job is only to relay information between the buyer and the wholesaler. Once the order is placed, the seller delivers the product. You do need a base of operation of course, but you could have one in Australia and do business in the United States.
- Build a Loyal Customer Base- As a drop shipper, you’ll have the ability to expand your business and attract customers from across various fields. You can keep your existing customers engaged in the treasure troves of your offers and become the one-stop solution for them and anyone who approaches your store.
Drop shipping has been around for a while and is a significant contributor to the growth of online eCommerce businesses. In addition to the benefits pointed out by Mark Roemer, drop shipping offers the ease and simplicity to generate revenue on a reliable and consistent scale both on a local and international level.