What is Dropshipping and is It Right for Your Business?

If you're looking to start your own e-commerce retail business, you might be asking yourself questions like: 

 

How do I obtain an inventory of products? 

Where will I store my inventory? 

How will I fulfill orders and ship my products to customers? 

How much will all of this cost?

 

It's true that launching a retail business can require a lot of risks and upfront costs, but one way for new or small-scale entrepreneurs to circumvent some of those expenses is to utilize the dropshipping fulfillment method.

 

 

What is dropshipping?

 

Dropshipping is an order fulfillment model in which products are shipped directly from the manufacturer to the consumer, rather than from the business owner. Online stores using this method do not keep the products they sell stocked. Instead, when an order is placed by a customer, the manufacturer ships that order to the customer directly.

 

What are the benefits of dropshipping?

 

1. Beginner friendly

 

Dropshipping is a great model for new entrepreneurs who have a passion for discovering, marketing, and selling products, but don't have the bandwidth, funds, and/or enthusiasm for stocking inventory and fulfilling orders.

 

2.  Less upfront costs

 

Because dropshipping relieves the business owner of the burden of purchasing, storing, managing, and shipping inventory, there are less upfront costs to starting an online retail business that uses this fulfillment method.

 

3. Less financial risk

 

Dropshipping is executed on a per-order basis, meaning the retail business owner never has to guess how much product he/she should stock. That also means he/she doesn't have to eat the cost of any inventory that doesn't sell.

 

4. Business location flexibility

 

Because products are shipped directly from the manufacturer to the customer in the dropshipping fulfillment model, entrepreneurs using this method can operate their online businesses from essentially anywhere, since they are not tethered to the location of their inventory.

 

5. Larger selection of products

 

Without having to pre-pay for inventory or limit product offerings due to finite inventory space, business owners who use dropshipping can offer a wide variety of products, which can help their businesses reach a larger customer base.

 

6. Risk-free product testing

 

Found a great product but aren't sure how it will sell? Dropshipping allows business owners to test how a product will perform without any upfront costs.

 

7. Easier to scale

 

Because retail entrepreneurs using the dropshipping method don't have to worry about employing more staff, expanding inventory space, or stocking more products to keep up with an increase in orders, their companies have room to grow with fewer hiccups and stress along the way.

 

 

Is dropshipping right for your business?

 

Dropshipping is an ideal model for many entrepreneurs looking to start an online retail business with little risk and upfront costs. That being said, this fulfillment method is not for everyone. Dropshipping can mean lower profit margins, limited product customization, complications due to sourcing from multiple suppliers, and a lack of quality control. However, most of these concerns can be resolved by choosing the right manufacturer.

 

 

TVCMALL provides an extensive selection of quality, customizable products at competitive prices. If a business owner can't find the exact product they're looking for, we source it for them so they can avoid the headache of sourcing from multiple suppliers. TVCMALL also offers market reports on its products to ensure entrepreneurs are choosing products for their company that actually sell. Get started here: TVCMALL Dropshipping.

 

 

TVCMALL is a one-stop shop for your retail supply needs. Interested in dropshipping? Get in touch with a TVCMALL representative today! We’ll be happy to answer any questions about our fulfillment method options and any other services you may require to help you along your retail business journey.