Drop Shipping: What Are the Advantages & Disadvantages
The most popular question I still get after more than a decade of eCommerce is,” What’s dropshipping?” It is not so difficult to answer. Read on with me since I cover this business model’s ins-and-outs!
Now that I have dealt with this issue, “What is dropshipping?” I want to go into the advantages and disadvantages of owning a drop shipping firm. When it comes to your choices, I need to have clarity. You have the full picture that way.
And you can determine whether you want to create a drop shipping company or whether you would choose one of the other business models. Continue reading on before you look for “dropshipping websites in USA.”
You Work Location Independently
The first bonus, and perhaps the most important one for me about drop shipping, is being independent of location. I have lived in Vietnam, South America, and Thailand for the last few years. You really can live and work from anywhere you want with a dropshipping company.
Dropshipping provides a degree of freedom from the venue that not all of these other market models do. That’s why my coaching program is named “Drop Ship Lifestyle.” It’s because you can be autonomous of your venue. You can also know about the advantages and disadvantages of dropshipping through amazon.
No Costs For Inventory
Another advantage is that inventory prices do not exist. So you’re not laying down any of the money for supplies as you start with drop delivery. The reality is that inventory is your greatest expenditure when you’re a conventional retailer.
It would be best to get the goods to sell physically, but you don’t with drop delivery. What you need is clearance for goods from manufacturers. Once you sell them, you pay for products, and there are no inventory expenses.
In the previous segment, I wrote about how I began importing into eCommerce. But I already had some inventory and storage expenses when I first started.
No Returns of Handling
Another advantage of decreasing shipping is that refunds do not have to be dealt with. To be sure, you’ll also have to forward the return slip from your supplier to your client if your client wishes to return an item. But they don’t come to you with these things.
You will not have returned goods turning up at your house if you own a dropshipping company. This will be sent back to the provider, and either you either get a refund depending on the provider’s contract or deliver a new item to the customer.
How to locate vendors with low return rates is one thing that I go into depth inside the Drop Ship Lifestyle course. Ideally, then, you won’t even have to bother with return addresses.
It’s Easy To Scale
Another big advantage of a drop shipping firm is how quick it is to scale up. For example, if you make $100,000 a year in revenue from only one dropshipping shop, building more stores with similar results is really easy.
And the great part is that this is what you will do over and over again. Starting with a single dropshipping shop, I always suggest that you really understand the procedure, go through it and master it. But it is straightforward to do it over and over again when you do it one time.
