Dropshipping Store Development

How does Drop shipping work?

Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.

The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory. Instead, the merchant purchases inventory as needed from a third party – usually a wholesaler or manufacturer – to fulfill orders.

Benefits Of Dropshipping Business And Why You Should Offer It To Your Wholesale Customers:

No risk

Fear is the reason why many people avoid starting their own business.

Even though everybody understands the benefits of being self-employed and independent, it is not easy for all of us to jump at the opportunity when it arises. People are scared to spend money during the preparatory stage because they are not sure that all the time, money and effort invested in this business will pay off.

Minimal effort

Dropshipping, in turn, doesn’t demand you to invest all your time and efforts in the store management. It works quite the opposite way: with dozens of automated solutions, you can complete the majority of tasks automatically and save enough time for the things that require your personal attention and individual approach (most importantly, customer relations management).

Increase lifetime value of customers

With the ability to add new and expanded product selections consistently, you can keep your existing customers engaged and returning to see what new items you’ve acquired. Costco stores offer a great example of this concept, and with a drop ship program, you can offer a similar experience online.

Low starting cost

You can start selling without a lot of early investment because you don’t have to buy wholesale or cover the cost of manufacturing your own products.

You can offer a wider range of products

Having the ability to offer a wider range of products is always something a company can aspire to and with drop shipping it’s possible. You don’t have to worry about different colours or sizes and where they’re all going to be stored, you simply list them on your site and your supplier can deal with the rest.

Testing new products without a risk

When adding new products to your range, the risk of not selling is always in the background. Having to guess what your customers want to buy is tricky for any business, so being able to test the water without making any true investment is always an advantage. If you want to get started with your online store and test new products, you can look up dropshipping marketplaces like AliExpress or Shopify.

Flexibility

The dropshipping model offers flexibility that would not be possible without it. Wholesale merchants can run the business anywhere and anytime as long as they have Internet connection. With the Internet, buyers can directly communicate with manufacturers or store owners at the same time with customers.

Leverage

In business, being able to multiply your money, time and effort is a form of leverage. By offering dropshipping to wholesale customers, you’ll be able to prioritize on establishing relationships with these buyers.

Dropshipping is a fulfillment model that skips traditional distribution channels and ships the products directly from the wholesaler or manufacturer. Retailers who dropship don’t purchase products ahead of time to sell, or keep inventory in stock within their own warehouse. Instead, the retailer processes customer orders by forwarding them directly to the supplier. The supplier then picks, packs, and ships the product to the customer directly. Payment for the order is handled by the retailer, who sells products at a markup and keeps the difference remaining after paying the cost to the supplier.

A supplier can be the manufacturer of the product, a wholesale distributor of the product, or any other part of the supply chain. What makes it dropshipping is that the retailer who processes the sale does not hold the inventory, but sends the order to the supplier for fulfillment. Some retailers even dropship from other customer-facing retailers. Generally, the earlier a supplier is in the supply chain, the cheaper a dropshipper will be able to source the product, because each step in the supply chain tends to add a markup.

By having your products shipped directly from the supplier straight to your customer, you can save on shipping and warehousing costs, delivery time, and the hassle of managing your own inventory.

Our Work Process

Your website is the first impression of your company and speaks in length about your work, not just in terms of the information that it carries but more importantly through the experience it gives to website visitors. More than a company’s first impression, your website needs to be clean and lead-producing. While getting a website developed, you need a partner with an industry specific approach and creative zeal.