Advantages of Dropshipping

October 17, 2010 by

Dropshipping offers retailers a number of significant benefits that can reduce the costs and the workload involved in making sales. Using a dropshipper can allow a retailer to focus on customer service and the marketing of products rather than on arranging deliveries and handling their inventories. This will be particularly beneficial for small and online businesses, which may not have the space to store products or the means to employ enough people to be able to easily cope with every aspect of the process. Some retailers only sell products through dropshippers, while others combine more conventional methods with dropshipping.

Dropshippers can take on a lot of the work involved in selling products. They relieve the retailer of the need to store items, manage their inventory or arrange deliveries to customers. This can save time and money for the retailer.

Using a dropshipper means that items are delivered directly from the supplier to the customer. This can reduce delivery time since there is only a single delivery. Items do not have to be delivered to the retailer before they can be sent on to the customer. The retailer does not need to have enough storage space to maintain adequate stock levels to supply their customers, and they do not have to keep an inventory.

Retailers only need to buy products from their dropshipper when they have already made a sale to a customer. This means that there is not need to pay for an item before a customer has purchased it. Therefore, there are no initial, upfront costs and there is no risk that the retailer will be left with unsold or outdated stock.

The retailer can buy any quantity of items from their supplier, without being penalized for making small purchases. Using a dropshipper means that it is possible to buy small quantities of goods at a reasonable price. Usually it is necessary for retailers to buy in bulk in order to benefit from reduced prices, but dropshippers are set up so that retailers can make small orders. The dropshipper may themselves buy in bulk, at low cost, and pass on some of these savings to the retailers.

Another benefit of using a dropshipper is that the retailer can offer their customers any number of different products. Usually the need to manage the inventory and store the stock would limit the range of items that can be offered, but since there is no need for the retailer to handle items themselves, it is possible to promote any number of items.

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