What are the benefits of dropshipping?
1. No need for stock management
One of the greatest advantages of dropshipping involves the exemption from stock management. Nevertheless, it goes without saying that this aspect involves significant financial savings, which reduces one’s risk of accumulating loses, given the alleged situation in which the business will fail. Given the fact that, with dropshipping, there is no need for stock management, consequently, no effort invested in the storage or in the maintenance of the products. According to Salvador Esteve, CEO of BigBuy, an internationally certified dropshipping supplier, this is the main appeal of dropshipping: It allows you to take care of sales and maximize profit share, without worrying about logistical issues.
2. Less spending
Furthermore, with dropshipping, starting a business is easier and faster than even. The main spending will only revolve around the costs necessary for establishing the online store. If additional services are subcontracted in order to create the online store, the ecommerce process can be ready in a much shorter time than formerly estimated. The dropshipping provider will take care of everything. "Your vendor must become your global logistics operator with all that involves," says Esteve. The vendor has to manage all the goods in stock, record the order, pick up, prepare the delivery package and coordinate with the appropriate courier companies for each area. In addition, the distributors are offered, in their control panel, all the information about the status of their orders. They can track each order by tracking number and receive after-sales support if they want to consult any delivery-related issue.
3. More time allocated to attracting customers
What is more, as dropshipping allows the retailer to not worry about storing and shipping the products, this allocates more time to what is in reality most important in e-commerce, namely, selling. By delegating work to a dropshipping wholesaler, one can take care of attracting as much qualified traffic as possible to one’s store and encourage the public to buy those products that one has at one’s disposal with care. In this case, different financial and time-related resources will be at one’s disposal, therefore, permitting the one’s ecommerce business to achieve its mission.
4. Greater opportunities for development
Besides the above-mentioned points, collaborating with a dropshipping wholesaler allows the offer of a very large catalogue, which can hardly be seen in the case of an individual work process. In addition, it will be constantly updated without one worrying about it. Also, with dropshipping, there is a high probability that the business will significantly develop, if a smart marketing strategy is put in place. In traditional trade, evolution can be seen as limited by things as simple as the size of commercial space. In order to be able to grow, the owner will have to look for a new space, with the costs that this entails (and not just the rent).