Running a business can be a lot of work. There are a lot of different aspects that you need to oversee or handle yourself, depending on the size of your enterprise. If you are considering starting your own retail company, there is one amazing alternative to traditional supply chain management that you should be aware of- dropshipping.
Dropshipping Explained
Your first question may be, what is dropshipping? Surprisingly, many business owners and entrepreneurs are still unaware of this term. Essentially, dropship companies are third-party suppliers that also handle storage, packaging and delivery of the product. That means that all is left for you to handle is the website. You’ll need to find a wholesaler that specializes in the kind of products that you want to sell. The process is usually as follows:
- A customer orders a product off of your website.
- The order is then sent on to the drop ship company- this can be set up to be automatic.
- The company handles the packaging of whatever dropship supplements were ordered and sends them directly to the customer.
Online Business Model
Online retailers and e-commerce platforms are the best fit for a dropshipping partnership. This is partially because a smooth transaction process relies on online ordering so that the invoice can be easily forwarded to the dropship supplier for fulfillment and communication can be immediate. Many drop shippers are concentrated in the health and wellness sector. This means that they are manufacturing things like vitamins, supplements and oils. Currently, this industry is booming, so it is a strategic time to jump in, especially with a reliable third-party drop shipper at your back.
No More Inventory
If you decide to partner with a dropship company, you are usually provided with a private label supplement pricing list. In other words, this business strategy abolishes the need for an inventory at all. It also means you don’t have to worry about where to store said inventory, or how to package and ship the product. When working with a dropship company, you get to buy as you go but also guarantee your customers a large variety of stock. Nothing is wasted! You get to have your cake and eat it, too.
Cut Your Costs
Dropshipping is essentially a one-stop-shop for all of your needs that can allow you to drop a lot of other third parties, vendors or contracts you may otherwise rely on. You may not even require a physical space if you no longer need to store anything; there goes rent costs. Whether you were shipping the product yourself or hired out for your packaging services, it will no longer be necessary. Even the costs associated with getting your hands on product in the first place are eliminated, everything will already be in the dropship warehouse itself.
Dropshipping can take a lot off of your plate. Almost every business owner knows that finding ways to reduce the amount of stress in your life can quickly become a priority. Make your online company as efficient as possible by looking into a dropshipping partnership to take care of all the heavy lifting for you!
