The Basics on Drop Shipping: What It Is

For many people, starting a business is a dream come true. But doing so isn't easy. There are a lot of things you need to have in order to succeed. Having a strong fulfillment partner and logistics is essential to growing your business even further, but if you are having difficulties with this, dropshipping may be the thing you are looking for. Now, you may be asking yourself Dropshipping? What's that all about? Don't worry; we are going to explain it all to you in this blog!

What Is Dropshipping?

Dropshipping is a business model where online businesses are able to market and sell their products without having to own or rely on their own warehouse or fulfillment center. Instead they work together with a third party seller who holds the product inventory and ships them out to the customer once an order has been made. 

This is a business model mostly used by online-based sellers. It makes it easier for them to produce and ship their product out without having to go through so many hoops. For example, a graphic designer can use professional printers to create some quality die cut stickers for them and ship them off directly to their customers. This makes it easier to produce in the long run.

 How Does the Entire Thing Work?

As we've mentioned before, dropshipping works on the premise that the retailer does not have a physical inventory on hand. Instead, they work together with manufacturers (like us). So this is how it works: When a customer places an order on the retailer's website, that company sends the customer's order and shipping information to their partner manufacturer. That company then ships out the customer's order directly.

This makes it easier for many online businesses that are just starting out, as it allows them to offer a huge selection of items without needing to invest too much in capital resources. This also ensures that certain risks are eliminated, such as storage cost, risk of damage goods, inventory problems, and more. 

Focusing on Marketing

With little of your capital being tied up in inventory and merchandise, you can divert your attention to investing your time and resources into the marketing aspect of your business. Social media ads, email campaigns, promotional stickers, and influencer partnerships are all important. You need these to drive traffic and engagement to your brand. Marketing ensures that you always have ways to draw customers in.

While you are doing your research for your marketing endeavors, it would be smart to look into your potential customers as well. Doing this lets you find popular products to put on your website. Being in the know is important to be ahead of your competitors. Don't forget to do your research on trusted suppliers as well. 

The Advantages of Dropshipping

Now, there are various advantages to this business model. We've touched on only some of the many advantages. Here are some more that you should be aware of:

Low cost: Without the need to invest in manufacturing and production, new business owners can easily start a dropshipping business without having to worry about the financial risk.

Wide selection of products: New businesses won't have to limit themselves to a single niche - they can offer a wide variety of products to attract more and more customers. 

Expansion potential: Because the retailer doesn't have to worry about managing a massive inventory, they can easily set their sights on expanding the business as soon as possible.

Final Thoughts 

And that's the gist of dropshipping. This is only the very basics of what this sort of business model can offer. In our next few blogs, we'll be looking to expand on dropshipping and how your business can take advantage of it to thrive.