Using a Drop Shipping Company – The Real Rewards of This Business Model
Online Retail sales now accounts for a good fraction of all retail sales. Some analysts believe this figure is about 13% and is set to rise with each passing year. The increase in this figure is in no small part associated with the ease of home based businesses that either have an eBay store or e-commerce website. Some of these home based businesses utilise the dropshipping model to fulfill their customer orders.
Now you will find many online retailers who will admit their success online to the ability of a supplier to drop ship items for them. Some other retailers will have horror stories of their experiences with a drop shipping company. So who is right?
Like any business opportunity, there are rewards and risks associated with employing the drop shipping model. If you have had or have heard about the horror stories which might have stopped you from starting your own e commerce business, then I hope the rewards listed below will help you reconsider adopting this business model. Also if you have had success with drop shipping, then you’re probably aware of some of the risks inherent with doing business with a drop shipping company.
Rewards of Drop Shipping
1. Low Start-up and Running Cost
With an internet based business, you get to slice a big chunk of the cost you would normally spend in starting and running a normal brick and mortar business. When 香港集運 you couple that with using a drop ship company to store, package and ship products to your customers, hen you can see why more and more people are using drop ship companies.
2. Absence of Inventory Storage Hassles
One of the major constraints stopping people from starting a business was the cost and hassle of storing goods. With some products, you have the pressure of selling off your products due to its seasonality or shelf life. With dropshipping, your supplier bears the burden of maintaining and restocking the inventory.
3. More Time to Focus on Marketing
Having the best product in the market without setting up various funnels to bring people to your website is an exercise in futility. With drop shipping you have the more time in experimenting and setting up various campaigns to bring visitors to your website. An online retailer with an average product but rich traffic is in a better position than one with a great product but poor traffic.