What is Drop Shipping ?

Hello Friends,Today I came with my new blog which is "Drop Shipping".So without wasting your time let's have a quick look on Drop Shipping.
Drop Shipping is a Supply chain Management method in which the retailers does not keep goods in stock but instead transfers the customer orders and shipment details to either the Manufacturer,Retailer or a Wholesaler who then ships the goods directly to the Customers.

       
Drop shipping is a service offered by (some, not all) Wholesalers. When you use a Wholesaler who offers Drop Shipping you don't have to worry about stocking or shipping products. Instead, when you get an order from a customer, you contact your wholesaler and they ship it to your customer for you. 


This means you, as a retailer you can sell a variety of products without ever having to stock any inventory whatsoever. This makes drop shipping very appealing for new, small, home-based online businesses. 



In short, it's designed so that you don't have to store any inventory and you don't have to worry about any shipping costs or logistics.We can also say that it is a method under which a store doesn't keep the product 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.

Advantages of Drop shipping :




Less Capital Requirement

The biggest advantage of Drop Shipping is Less Capital Requirement because it require less amount for investment.With Drop shipping You don't have to purchase a product unless you already made the sale and have been paid by the customer.

 Flexible Location

 Drop Shipping can be done from anywhere with the help of Internet connection.By the help of Internet suppliers can directly communicate with Customers.

 Easy to get Started

 It is very easy to start and operate including: 
  • Packing and shipping your orders
  • Tracking inventory 
  • Managing or paying for a warehouse

Wide Selection of Products

Since you don’t have to invest in building your own inventory, you can stay on top of trends and quickly add new products to your site. You can also quickly switch up your offerings without first having to order new items or clear out Previous stock.


Disadvantages of Drop shipping:

Low Margins

There’s also a lot of competition in the drop-shipping niche. Because it takes so little investment to get started, drop-shipping businesses often provide products at very low prices. To compete, you often have to drop prices too.

Inventory Issues

When you own inventory, it’s easy to check stock levels. But when you get products from multiple suppliers — who in turn are working with other retailers — it’s more difficult to make sure that the products you need are readily available

Supplier Error

Suppliers are at the core of your business, so be selective about whom you partner with, and never take those relationships for granted by paying them late or being difficult to work with. 

Shipping Complexities

If you’re working with a number of suppliers, your shipping costs become quite complicated. Let’s say that a customer orders two items, each from different suppliers, each with different shipping costs.Therefore it is a basic drawback of Drop shipping.

Tips for a Drop-shipping business

There are a few best Tips and Tricks to implement to assure success for your Drop-shipping business.

                             
  • Make online shopping a pleasure
  • From ordering to delivery, you want to make the experience as seamless as possible. That starts with a user-friendly e-commerce experience. You want to invest in building an elegant site that is easy to use (on all devices) and simple to understand.
  • Be particular about products
  • While drop shipping allows you to sell a wide variety of products, that doesn’t mean you should sell everything. Do market research and analyze trends to determine what you should be selling in your store. Think carefully about what is marketable, what is easy to ship, and what is hard for people to find locally.
  • Focus on quality
  • Even if you thoroughly vet a supplier, you should remain vigilant about the service once you’re working together. For example, if there are several incidents of damaged products, lost packages, or late deliveries, cut ties with the supplier or risk losing the confidence of your customers.
  • Build a trusted business

  • Your reputation is everything, so not only do you need to follow through on your promises with reliable drop-shipping partners and a great website.
I hope, the topic "Drop Shipping" is useful to you. Please give me you precious suggestions and your personal experience in comment box.


Thank you