As you set up your business and you look for ways to get your goods and products from the manufacturer to your customer, you may want to do some research into the method of drop shipping. While this method of product fulfillment isn’t exactly new, it does seem to be picking up steam as of late. Here’s a look at what you need to know with a handy dropshipping guide that covers all the basics of the model.

What Exactly is Dropshipping?

If you sell products to customers then you require a retail fulfillment model to get the goods out to them. Dropshipping is one option that allows businesses to ship products directly from the manufacturer/wholesaler to the customer. It requires the business to partner up with a shipping supplier where they can then list all their products. What this means is that the business doesn’t have to purchase large quantities of inventory and then deal with storing it.

The way it works is that when a customer buys a product from your company, you then purchase the item from the third party and it is shipped to the customer. You as the merchant will never actually see or even handle the product.

Why Consider Dropshipping?

So why should your business consider this retail fulfilment model? There are actually a number of benefits in using dropshipping. Here’s a look at the top advantages.

1. You can offer a huge array of products, perhaps more than you would be able to offer if you were storing the products yourself. What this means is that customers can have more of a one-stop shopping experience since they will be given such a vast variety.

2. The dropshipping model means you will require less capital to get started. When you are first starting a business, a huge amount of money goes into purchasing inventory. Imagine if you didn’t have that expense, just think about the savings. You will never have to worry about being over-stocked and then having to absorb the costs if the products don’t sell.

3. You can react to market trends quickly since you aren’t actually carrying physical products. If a product isn’t selling well, you can just take it out of the catalogue with no loss on your part. At the same time if there is a trend happening, you can quickly jump on the train and start offering that product.

4. Since you aren’t storing inventory you won’t need much office space. A large warehouse likely won’t be necessary, which means your overhead costs will decrease.

5. If you’re worried about your brand integrity, the good news is that the shipping company will still use your company branded shipping materials. That means your shipping stickers, packing slips, and boxes. It will all look like you’ve sent it directly to the customer. They will never know the difference.

It Could Be the Perfect Solution

Dropshipping is absolutely loaded with benefits and advantages, which could mean it is the perfect retail fulfilment model for your business.

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