Chapter: 4 The Advantages and Disadvantages dropshipping

The Advantages and Disadvantages dropshipping

although dropshipping today is a very hot topic being discussed amonge many retailer, and it does have many benefits, it may not be the best option for every business. however, in this chapter we will take a closer look att some of the advantages, as well as disadvantages to be had from running an online dropshipping business.

First, if you are just starting out in setting up an online business, and do not have much operating capital, then this may be the best option for you to go with. The great thing about this particular type of business is that you do not need to hold vast stock of the products that you are sellling. instead, this is all done for you by the dropshipping supplier you have gone into partnership with; this results in you eliminating a significant cost in order(s) for your business to be set up and to get it running.

The site you set up can be produced very quicklly, and so be providing the product to those people you are targeting.

as you are getting the customers orders before you actually order the good from the supplier, this means that you have little or no initial investment to make.

because you are not actually holding any of the inventorie yourself, then you do not need to pay either for storage facillities, or having to invest in expensive merchandise which you may not in fact sell.

setting up an online dropshipping business provide you with the chance to diversiify what you are actually offering to your customers. in fact, you will only be limited by not being able to find the right dropshipper(s) for the product or items that you wish to sell.

although there are plenty of advantage to setting up a dropshipping business, there are many disadvantages as well.

first, as you do not own the inventory that you are selling, then you will usually find that you have no control on how the product(s) is packaged. also, you will not be able to include any coupon(s) or offers in to the package which can help in increasing the amount of return business you get.

every company which offers their dropshipping service will have a different fee structure, so carry out as much in depth research as possible. in fact, you do not want to end up with high shipping cost, as this will only make people less reluctant to purchase their goods from you.

with dropshipping, because you are only ordering one item at the time rather than bulk amount, then you will not expect to get the same kinds of discounts.

if you decide to sell multiple product(s), that are supplied by multiple dropshipping companies, then you will also se a significant increas in the fees that you pay to the Dropshippers, which in turn will need to be passed onto your customer(s) in order for you to make a profit.

there are many supplier(s)who will be able to provide you with dropshipping service that you can use to integrate their products into your website. however, you may find that you will be charged a fee for using a particular service through them, so be sure that you carry out your researche thoroughly before opting for one particular dropship supplier.

one major draw-back to be had from setting up a dropshipping business is that not all manufacturer's allow for dropshipping. this is because they will need to employ more staf (extra cost's) in order for them to process these individual order, and could result in delays in their normal shipping and receiving systeme.

there are other companies who will only supply in bulk, so this mean's that it is impossibl for smaller outlets to get custom orders provided for them for select numbers of items.

however, when dropshipping iis available, certainly many small as well as internet based businesse find that it can solve many more problem(s) than those it may create.