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Top 7 Dropshipper Advantages

J. Stephen Pope

by J. Stephen Pope

Here are seven reasons you should consider being a dropshipper.

1. Low Capital Requirement: Instead of paying to stock inventory, your customer finances the order. For example, if an item costs fifty dollars from your dropship supplier, you might charge your customer one hundred dollars for the product plus applicable shipping charges. When you receive payment from your customer, you will then send fifty dollars plus shipping charges to your dropship supplier. You have just made fifty dollars gross profit entirely financed by your customer.

2. No Inventory Required: You will not need to worry about how to finance high minimum orders of wholesale merchandise, getting stuck with stock that won’t sell. or extra costs for warehouse space, insurance, shrinkage, and so on.

3. Expanded Product Line: In addition to your own products and services, you may increase your sales and profits by selling other people’s products.

4. No Product Fulfillment: Your dropship supplier picks, packages and ships the orders to the customer.

5. Keep Expenses Variable: Instead of having a high fixed overhead, more of your costs will be variable. You don’t pay for inventory, for example, until you have a sale.

6. No Minimum Order Requirements: Dropship as little as one item.

7. Increase Sales of Your Own Products: On the other side of the coin, have you considered the advantages of drop shipping your own products? In return for giving your dealers a wholesale price, you may sell significantly more product than you could on your own. You would have to ship the products on behalf of your drop shipping dealers.

Dropshipping Revealed! Ebook

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