It won’t be long before drop shipping becomes mainstream as more and more businesses are looking into ways of spending less on inventory. Instead, they turn over such responsibility along with logistics to their suppliers or the manufacturers of their products. These are some of the benefits of drop shipping, which you can also experience for yourself if you use such platform.
Here are some more advantages of drop shipping to your business.
1. Drop shipping lets you sell bulky products.
If, for instance, you decided to sell furniture online, you surely need to acquire a big warehouse for your products, such as couches, beds, and cabinets, which is costly given that you have to pay for rental and manpower to take care of the goods.
But when you use drop shipping, you won’t have to worry about stocking and shipping bulky items anymore as drop shippers typically have large warehouses and cargo trucks to help them accomplish both.
2. Drop shipping allows you to experiment with selling products without giving full commitment.
Aside from furniture, you wanted to sell grand pianos, too, because you play one reasonably well and you want to share your enthusiasm for the said musical instrument to your customers. However, you may not want to overstock on grand pianos yet as they are generally considered a luxury item and you’re still testing the waters.
You can arrange a drop shipping agreement with a handful of grand piano manufacturers wherein they’ll manage both stock and delivery of their products. That way, you can more easily gauge if expanding your business to include grand pianos is worth it or if you’re better off sticking to selling furniture instead.
3. Drop shipping reduces the risk of product damage before it reaches your customer.
Say that your venture into selling grand pianos took off; you bought a pickup truck that can accommodate a grand piano on its back so you can deliver it yourself to your customer. Unfortunately, a sudden downpour occurred. As a result, the poor grand piano got wet and damaged, leaving your customer you utterly disappointed that they don’t want to do business with you ever again.
With drop shipping, you won’t have to worry anymore about delivering that grand piano as the drop shipping company a special vehicle to safely transport it from the warehouse to your customer, thus reducing the risk of exposure to outside elements or sustaining any significant damage from falling objects.
4. Drop shipping protects your business from losing its revenue in case demand for any of your products collapses.
Not all ventures end up as success stories. For instance, if you’re selling grand pianos the traditional way and unfortunately they are not selling as much as you envisioned, you would end up with stagnant unprofitable products and getting rid of them can be challenging. Either you’ll have to slash their prices down or, when worse comes to worst, dispose of them in a landfill. Both options would cause your business to lose a considerable amount of revenue.
Drop shipping saves your business from the perils of losing money due to leftover stock so that you can have a graceful exit from your failed venture and perhaps try selling a more in-demand product instead.
You may have stocked boxes of the products you sell in your garage when you first started your business. You may also have delivered those products yourself to each of your customers. But once the demand for any of your products increases, you may have trouble managing both the inventory and logistics aspects of your business. You’ll thus want to adopt drop shipping as a customer order fulfillment method, and the above-listed benefits it can bring to your business should convince you to pursue it. Just make sure to look for journalreview.org avoid scam online first to avoid opportunists in the business world who are targeting vulnerable startups and small businesses.