The term dropshipping, has emerged relatively recently. What are the characteristics of this sales model? First of all, it relies on the fact that, as a seller, you display goods in your online store without having them in stock. This model very quickly gained supporters as well as opponents. As with any form of sales, it should be selected according to the needs of a particular market.
6 advantages of dropshipping
- You don’t need to own warehouse space – any office or warehouse space, entails a lot of costs for the entrepreneur. Using this sales model, you will avoid many fees. When you purchase an item you have in your store, you send this information to the online wholesaler with whom you have a contract, and they handle the delivery of the item to the customer.
- Larger assortment in the online store and a wider range – no need for storage means that in your offer, you can have more goods. The online wholesaler you work with stocks these products for you. This is very good for expensive goods that are hard to sell. So you don’t have to buy them and invest a lot of money at the start. You only buy when customers buy from you.
- You incur fewer costs – there are many fees that you will avoid, thanks to the dropshipping model. This ranges from the already-mentioned storage costs to costs associated with shipping or hiring employees.
- No risk of unsold goods (you are only an intermediary) – intermediary is a good term for this model. You don’t have to worry that you’ve spent a lot of money, on goods that just don’t go off and linger in the warehouse. The customer pays – you order and only then purchase the goods from the wholesaler.
- You can even operate several online stores at once – thanks to a very simple scheme, the work can be done even at home. All you need is a computer and the Internet. Your efforts are limited only to good marketing.
- You can have an assortment from the other side of the world in your store – more and more wholesalers are opting for this form of cooperation. Not only in Poland or Europe, but all over the world. All you have to do is find an interested wholesaler online and sign a contract with it.
Many entrepreneurs have already discovered the potential of dropshipping. It can make it much easier to run an online store and expand its audience, with a larger assortment and a simple solution for the owner.