Each year, there are over $50 billion in sales on e-commerce websites, with that number increasing immensely with each passing year. With fuel prices reaching record breaking highs and the economy in the dumps, more people are staying home to shop online. Studies show that e-commerce sales show no signs of slowing down.
What that means for e-commerce entrepreneurs is an opportunity. Whether you are looking to expand your current e-commerce product selection or just looking to get into the market, drop shipping is a cost effective way to accomplish your goals. With drop shipping, there’s no buying the product upfront with the “hope” to sell it later. Instead, only pay for the item once you have sold it.
With drop shipping all you have to worry about is:
- And Selling
Drop shipping has become very popular because of its ease, but some argue there’s no room for a profit.
What is Drop Shipping?
Let’s quickly clarify what a drop shipper is. A drop shipper is a product supplier who is willing to ship individual orders. Normally, products are purchased in bulk quantities and then shipped to the seller who then ships them out to their customer. Drop shippers are the exception because most do not have minimum purchase requirements. They carry the product, package it using their materials, and they then ship the product directly to your customer when you place an order. To help you see if drop shipping is the best option for you, we are going to list some pros of using a drop shipper.
Benefits of Drop Shipping
Your business won’t need to stock inventory, eliminating a significant cost and reducing your start up risks.
You don’t pay the wholesaler for an order until your customer pays you. And you can test new products without purchasing inventory that may not sell.
Your site can be open for business very quickly.
The time you spend receiving and organizing inventory, labeling, packing, and shipping orders is time you can now spend promoting your web site.
In most cases, there are no minimum orders, which means that you can order as many or as few products as you’d like. Even down to individual products.
You can carry an array of products on your online store, you can dropship supplements, electronics, auto parts, books, gifts, etc., because you don’t have to physically stock these items. You can also sell larger items such as refrigerators or furniture without the hassle of trying to ship each piece.