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This guide is about Benefits of Dropshipping Business for eCommerce Store Owners. So read this free guide, Benefits of Dropshipping Business for eCommerce Store Owners step by step. If you have query related to same article you may contact us.
Benefits of Dropshipping Business for eCommerce Store Owners – Guide
Dropshipping is a low-risk online business model that can help you go from zero to hero with a few hours of work a day and doesn’t require a huge investment. Dropshipping is a type of order processing where retailers do not manage inventory on their own. Instead, dropshippers buy items from a third-party vendor who fills customer orders for them. The term “dropshipping” gained popularity in 2006, when AliExpress became popular with the introduction of Chinese e-commerce stores in the United States. Back then, many didn’t know what dropshipping was. But some smart entrepreneurs took the lead and opened their businesses to make a profit.
They used AliExpress because of the low prices. Soon more people joined the movement and the dropshipping business became an instant success. Dropshipping is a supply chain model where a dropshipper can deliver a product directly from the wholesaler’s warehouse to the customer home without taking on logistics and management. In this way, dropshippers can focus on the “real” aspect of the business; H. Growth and Scalability.
These dropshippers earn a commission by selling vendor products for a premium, earning handsome commissions in the process. In short, dropshippers act as intermediaries between suppliers and customers. When an order is received, they transmit the order information to the supplier and keep the surcharge as a commission.
Benefits of a Dropshipping Business
Zero initial inventory costs
A direct benefit of not having to keep items in stock is that you don’t have to buy them. This saves a considerable part of the costs when starting an online store and lowers the overall risk. This makes dropshipping a profitable option, especially for risk-averse sellers. If you don’t have the money or willingness to pre-buy inventory, you can work with vendors who are ready to stockpile and fill orders.
No logistical headaches
In addition to buying and stocking inventory, handling logistics is a big issue for retailers. Printing, packing and shipping items can be time-consuming and requires experience and knowledge to manage properly.
This is also an area where consumers are ruthless and less tolerant. 64 percent of millennials are more likely to buy when the same-day delivery option is available, and 61 percent of shoppers are willing to pay more for same-day delivery. Starting a dropshipping business saves you from worrying about these details as the supplier takes care of processing the order.
operate from anywhere
E-commerce dropshipping also offers location flexibility. Your dropshipping business can be run from anywhere, as long as you have a good internet connection. When you’re in a place where you can easily communicate with suppliers and customers, nothing stops you from doing business.
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