What is Dropshipping? What are its advantages and disadvantages?
DropShipping is basically a fulfillment method by which one setup his or her own e-commerce shop without any worries for inventory, For that one need to tie-up with a the third party wholesaler or the manufacturers who directly delivers the order to the customer without any involvement of the seller. It has both cons as well as pros which are described as under.
Advantages of DropShipping:
- Very easy and economical to setup a dropshipping based eCommerce website: – We require very less capital to setup the store because we don’t require any capital to buy the inventory its all managed by the third party. In this we don’t have to manage the warehouse, Tracking the inventory or packing and shipping the articles.2
- Independent location: – For this business, all you need is just your laptop and an internet connection we can just sit anywhere setup the communication with the suppliers and the customers.
- A Large variety of articles to sell: – As we know that we don’t have any inventory of our own so we can contact to a number of different suppliers and add as many articles as many we want. For this you require expert eCommerce product data entry, imaging and management services. We at Matrid provide Magento product data entry and Shopify product data entry apart from product data entry services for most of other the ecommerce platforms including but not limited to BigCommerce, WooCommerce, AspDotNetStorefront, Volutsion,
- There are various pre-built solutions which support dropshipping like Shopify Dropshipping, which make a drop shippers dream come true without much hassles.
Disadvantages of Dropshipping:
- Low profit: – Due to high competition in the world of dropshipping there is very less margin in the profits. So, it leads to the biggest disadvantage of the dropshipping
- Inventory issues: – If we are using dropshipping we can face a lot of issues regarding the availability, Our supplier can be working with other merchants too, So it is very difficult to manage the inventory on the daily basis.
- Shipping complexity: – In this, we have to face a lot of difficulties, As a customer’s orders for three different articles form your store and all of them all to be delivered by different suppliers. It leads to the increase of the checkout bill due to which you could lose the trust of your buyers.
- Suppliers error: – Its one of the major drawback, Error that is done by the supplier and its effects are to be faced by the merchant as the third party is invisible in this case. Errors can be like damaged or low-quality packing, product was not similar that was shown on the web, product missing, etc.
Make Your Dropshipping Model a Success
Due to very low margins and complexity of the Drop Shipping Business Model, you need to have support of the best eCommerce and other software platforms. You need a very Quality Software Developer and preferably an Indian Software Developer who should provide you a cost effective but quality software development service.
Contact Matrid Now for the DropShipping Development and Management Services. Call Us Now at +1-855-370-5507