What is Dropshipping? And the reasons to use it.

What is Dropshipping? And the reasons to use it.

According to Hyacil Han, author of Dropshipping Ultimate Guide “Don’t find customerfor your products, find products for your customers.”

When you start an online clothing store, Dropshipping can help you cut down the cost on the inventory.  To break it down, Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product. This arrangement has several advantages that make it attractive to online merchants.

The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory. Listed below are the reasons to consider drop shipping for your online clothing store.

  1. A Broad Product Offering

Drop shipping allows merchants to offer many more products for sale than what might be feasible if that merchant had to inventory everything.

Having a broad range of options can also help marketing since each product page can be a landing page. These additional products are a way of introducing a greater number of potential customers to the store.

  1. Come to Market More Quickly

While it takes just as long to post a drop-shipped product to an e-commerce platform as it does a product that is in inventory, drop shipping may help a merchant come to market more quickly.

Drop shipping eliminates wait times when products are shipped from the distributor or manufacturer to the merchant. In some cases, this can be a few weeks. With drop shipping, a merchant can start selling the moment the product is published on the e-commerce site.

  1. Explore New Lines

Drop shipping gives merchants a way to test new products without having to bring in inventory.

It helps the merchant determine the trend. Based on the trend the merchant can determine if he/she wants to go with the inventory.

  1. Reduce Your Investment

An underlying theme in points 1 to 3 has been that merchants employing a drop shipping strategy don’t have to keep products in inventory. Quite simply, since drop-shipping agreements generally do not require any upfront investment, a retailer can significantly reduce its investment in products.

This also means that some e-commerce start-ups don’t need as much money as one might think to get up and selling.

  1. More Time

In a drop shipping arrangement, the retailer does not receive, stack, store, pull, pack, or ship products. All of these tasks are time-consuming, which means drop shipping saves time.

In a start-up e-commerce business where the store owner may also be the box packer, this additional time will be available to actually sell products, which should benefit the company.

The Downside of Drop Shipping

Drop shipping does have its downside. For example, it creates customer service challenges as orders can get mixed up, inventory levels change, and product returns become complicated.

With the potential challenges, drop shipping may work best in conjunction with inventorying some products.

In conclusion

Drop shipping is an order fulfillment strategy where products ship directly from a wholesaler or manufacturer to the customer; the retailer acts as a marketing and customer service organization. We have listed legit reasons to consider using this technique, although drop shipping may work best when it is blended with other fulfillment strategies.


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