Drop shipping is a popular business model used by B2B (business to business) or B2C (business to consumer) businesses and wholesalers. Companies implementing drop shipping can increase efficiency, decrease costs, and increase profit margins. A lot of business owners do not realize the incredible benefits drop shipping provides.
Drop shipping is a powerful business model in which you don’t keep the products you sell in stock. Instead, when you receive an order, you purchase the item directly from a third-party supplier, ship the item directly to your customer, and then bill the customer for the product. You never see or handle the product. You simply make your profit on the shipping and handling fees.
When an item is sold, the retailer passes on the customer’s order information to the wholesaler, who then ships the product directly to the customer.
The retailer does not keep the products in stock, but instead transfers the customer’s payment and shipment information to the wholesaler, who then ships the merchandise directly to the customer.
Drop-shipping for Wholesalers & Distributors in Kerala
Drop-shipping is a direct fulfilment method in which the retailer doesn’t keep any of the products it sells in stock. Instead, when a consumer orders a product, that order is placed with the wholesaler or manufacturer, who ships directly to the consumer. Drop-shipping can be useful to wholesalers because they don’t have to store product. It’s also useful for retailers because they can carry unlimited inventory without having to buy it first. This can allow them to test new products without making a large inventory investment.
Another benefit of drop-shipping is that you can create an online store without needing the physical space or capital to store and ship products yourself. And, because you’re only buying a product once a customer has already paid for it, you don’t have to invest much cash upfront.
Drop-shipping reduces inventory and increases profit for your business.
Drop-shipping reduces inventory and increases profit for your business. You can utilize your warehouse space for other products that you have readily available, without having to worry about stocking parts for a product that you do not currently have on hand. Drop-shipping also allows you to sell more products with less risk because you don’t need to purchase products in advance.
Because drop-shipping is a selling method that maintains the inventory of products that are being offered at a lower price, it is an attractive option for wholesalers who want to sell their goods at competitive prices and yet earn great profits with minimal capital involved. So there you have it—a very simple definition of drop-shipping and how it works. As you can see, setup is easy and inexpensive, while the process itself is profitable. It’s a win/win situation, so if you’re just getting started in wholesaling or fixing to delve into it in more depth, you should definitely consider adding drop-shipping to your repertoire!
