Dropshipping is a profitable trading model, still like a rising star in ecommerce among both retailers and suppliers. It is an advantageous strategy for not only those who are new to commerce but those as well who would like to broaden their existing product selection with new goods. Let’s see the benefits of dropshipping for both groups!
The list of the benefits of dropshipping could be so long here we would just like to highlight the most significant factors to help new and experienced entrepreneurs learn why dropshipping is worth dealing with.
Dropshipping is a popular trading model among especially those who dream about opening an online store but do not have much capital money. Also, they think it is much easier if it is the supplier itself who deals with logistics while the retailer takes care of gettings sales. It is a profitable strategy for the retailer and the supplier as well. The retailer mainly has to focus on marketing activities.
The reason why dropshipping is still profitable is that the popularity of online shopping is becoming more popular. It is not only because of the pandemic and that people prefer to buy everything online, but customers also realized that they can trust online stores. They know what to take care of, most people can realize which stores are trustworthy, and which might be risky to order from.
Now let’s see what those benefits of dropshipping are that you can consider when deciding if this trading model really is something that you should start with. First, we begin with the details for new business owners, and then we will share the benefits of dropshipping for those who are already on the market and want to grow their businesses.
Benefits of Dropshipping For New Business Owners
Would you like to start a dropshipping store and you haven’t run an online business before? Then everything must be super new to you. Try to learn as much about business life as possible to not have to face too many unexpected happenings. Let’s see the benefits of dropshipping for new online store owners.
1. No Upfront Investment In Physical Inventory
You need to know that you definitely need money to start an online store regardless of which business model you choose. You need to pay for running your store technically, there will be several monthly and annual charges. Still, dropshipping is of course beneficial for you, as you don’t have to spend money on the most expensive element of running a usual store, the physical inventory. You will not have a warehouse, and you don’t have to deal with logistics.
2. Easy to Kickstart and Manage The Business
One of the other main benefits of dropshipping is that it is quite easy to start your commerce business with. As for online stores in general, you don’t have to find a physical store and rent a warehouse, the capital investment is lower than in the traditional trading model. You don’t have to deal with logistics-related tasks almost at all. If you choose only 1-3 dropshipping supplier partners, you also won’t have to deal with issues like the customer receiving more different packages of the products they ordered and belonging to different brands.
3. Constant Low Risk
Dropshipping is beneficial for you if you are new to ecommerce as you can start your dropshipping store with low risk. You don’t have to invest money in physical inventory, you do not have to rent a warehouse or deal with logistics. You only have to pay for building the website, marketing your business and you will have to arrange other official details to be able to run your store legally. You also don’t have to worry about not succeeding well with all the products you sell. Feel free to sell seasonal goods like Christmas decorations or swimming suits. You don’t have physical inventory, so you never burn money on too many goods in stock.
4. No Limitation In Experience And Age
It doesn’t matter if you are new on the market and still learning about the many factors of what it’s like to be a merchant. You can be 21 or 70, it doesn’t matter. It can start as a great hobby and can turn to be a lucrative, full-time business. Learn from several different sources to gain information from more points of view. Check websites, ebooks, videos, and use applications that benefit your smooth work. The market changes quickly, always stay up-to-date.
5. Dropshipping Is Having Its Best Time
Dropshipping will be a $650bn market by 2025. Statistics predict a dropshipping market growth rate of 28.8% from 2018 to 2025. According to Grand View Research, “the global dropshipping market size was valued at USD 102.2 billion in 2018 and is expected to register a CAGR of 28.8% from 2019 to 2025.” You are still in time to start your store with dropshipping, you just have to make sure you follow reliable strategies.
6. Flexibility – Ability to Operate Anywhere
You do not have a physical inventory thus it doesn’t matter where you are, you can manage your online dropshipping store from anywhere. It is a great one from the benefits of dropshipping that you can even travel, or just move to another city, you won’t have any problem in the everyday work as you don’t have an inventory you would have to move from one place to another.
7. Virtually Unlimited Stock
You have the freedom to basically have any kind and any amount of products in your online store. The limit depends on how much you are willing to pay for the packages of the ecommerce platform you are running your store on and the same with the applications you use. You can broaden your selection anytime, or can have changes on it. Also, you can sell seasonal goods, or, if you notice your customers are not really a fan of some goods, you can get rid of those products in two clicks.
8. Grow At a Fast Rate
As you can decide on changing your product selection from one moment to another it means you can grow the number of the products you sell easily. It is a great dropshipping benefit. If you sell more products in your store, a higher number of potential buyers can find your store, and customers also have more to pick from, thus it is possible that they will place more goods in their shopping cart. It all leads to faster growth.
Benefits of Dropshipping For Growing Businesses
If you are already a business owner and want to extend it, it is worth checking the list of the benefits of dropshipping that was created for you to help decide whether it is a trading model you should start focusing on. You can grow your business easily by implementing dropshipping in your strategy. Let’s see the reasons for it.
1. Expand Your Product Range
Do you already have an online store and are working with a physical product inventory? It can be in a warehouse, or in your garage. What matters is: you have to deal with logistics, and you need to invest money in product inventory. If you want to keep your already existing selection it is absolutely okay. With dropshipping, you can expand your product range, you can focus on seasonal goods or you can try out new things
2. Constant Low Risk
You do not have to be afraid of burning and wasting money on product inventory if you choose the enjoy the benefits of dropshipping. If you notice people do not demand some products enough, you can change your product range anytime, easily. Also, the Christmas decoration won’t need any space in your warehouse. It is easy to modify your selection anytime, from anywhere. You can also test new products without risk.
3. Reach a Wider Customer Base
If you are expanding your product range with new goods, and offering much more in your online store you can reach a wider customer base. It is because if you have more products, more potential buyers can find you. Moreover, if someone notices they can get everything they need from one place, it is another reason for choosing your store. It is a great one from the list of the benefits of dropshipping.
4. Convenient Focus on Store & Marketing
If you do not have to deal with logistics-related tasks like storing products the right way or being in contact with the delivery service, you have more time to focus on your store itself and your marketing strategy. You can spend more money on marketing as well than it would be with the classical trading model. Make sure you will go with well-planned strategies.
5. Easier to Scale
Another one from the list of the benefits of dropshipping is that your store will be easier to scale with this trading model. It means your business can grow and expand without a substantial increase financially and in terms of resources. It is simpler to grow in a proportional way.
6. No Inventory Warehouse Needed
You will not need bigger or more warehouses to be able to sell more goods with your online store. Your dropshipping supplier partner will store and manage the inventory, and they will send the products directly to your customer once they receive the order details from your store. It is a great advantage for you as you can grow your business in an easier way.
7. Virtually Unlimited Stock
Another one from the list of the benefits of dropshipping is that you have the freedom to have any kind and any amount of products in your online store. The limit depends on how much you are willing to pay for the packages of the ecommerce platform you are running your store on and the same with the applications you use. You can broaden your selection anytime, or can have changes on it.
8. Saving Time and Money
Running your online store is a time-consuming process. You have many tasks to deal with. By working with a dropshipping supplier you don’t have to deal with physical inventory and logistics, you don’t have to deal with making product photos, or anything, as you get ready-to-sell products and product data.
Where to Find Dropshipping Products?
You can enjoy all the benefits of dropshipping with Syncee. Syncee is a global B2B platform with a huge directory called Syncee Marketplace. On Syncee Marketplace, you can find millions of products in various categories from hundreds of suppliers from the US/CA/EU/UK/AU+more. You can pick products one-by-one or in bulk, and can set useful filters, and can customize pricing. Syncee takes care of the automatic product uploads, updates, and order data synchronization.