8 Reasons to Choose Dropshipping Business Model

Eight Reasons of Choosing Dropshipping

  • Smaller startup costs

In order to set up an online business, a good chunk of capital is usually required to buy your inventory of products.

But this can be guess work, as there’s no saying how much stock you’ll sell for that month or year.

Don’t have enough money to start your online store?

Dropshipping avoids this problem, eliminating the risk of spending your money on unsold stock.

  • Instantly offer items

Usually, when a retailer wants to start selling a product, they’ll have to wait until all of their stock has been shipped in order to begin advertising them on their website.

After all, what’s the point in offering an item for sale when you can’t actually sell it?

Using dropshipping means that when you decide you want a product on your site, you can start advertising almost immediately.

  • A wider range of products

Having the ability to offer a wider range of products is always something a company can aspire to, and with dropshipping it’s possible.

You don’t have to worry about different colours or sizes and where they’re all going to be stored, you simply list them on your site and your supplier can deal with the rest.

  • Low risk

When adding new products to your range, the risk of not selling is always in the background.

Having to guess what your customers want to buy is tricky for any business, so being able to test the water without making any true investment is always an advantage.

If you want to get started with your online store and test new products, you can look up dropshipping marketplaces like shopv or Dropship Direct.

  • Time-saving

Organising your stock and preparing it for delivery can often be a time-consuming nightmare.

Using a third party to ship items saves handling, labelling, packing, shipping and so on.

This leaves you with the time to focus on your core business.

  • Expansion into new markets:

Sometimes getting products across international borders can be challenging, not to mention costly. But if you do your research and partner with suppliers who are strategically located, you can often get the same or similar product to almost any region. This permits you to test the market and validate if a given product is worth importing.

  • Virtually unlimited inventory:

One of the main reasons the dropshipping industry exists is to help retailers and suppliers combat inventory distortion: the problem of over-stock clearances and out-of-stock shelves. Theoretically, by tapping into inventory further up the supply chain, you can get access to virtually unlimited inventory.

By contrast, dropshippers may find it harder to work with Amazon and eBay. As their policies do not support the dropshipping business model. Preferring retailers to buy inventory of products and fulfill orders manually. This means a higher investment for the retailer and therefore higher risk. Not only that but entrepreneurs find it hard to convert sales when linking their eBay and Amazon product pages to their advertisement.

  • Customer retention possibilities:

It’s possible to structure your business in a way that has customers buying from your store every single month. If you’re constantly testing all your products and rotating the winners throughout the seasons, you can find a way to stay profitable every month throughout the entire year.