In today’s economic crunch, ebusiness, always known for being innovative and ready to take advantage of alternative ways of doing business, must become even more so. Drop shipping is an important part of this equation. As a result, this simple technique for doing business has become more and more popular among online merchants.
Use of drop shipping helps an ebusiness function more efficiently, offering more variety to customers without increasing risk to the company itself. In drop shipping, the ebusiness arranges to have products shipped directly to you from the manufacturer, rather than maintaining inventory.
Drop shipping is yet another way that an ebusiness can function more efficiently and at lower cost than a traditional brick and mortar store. This efficiency is passed along to the customer in a variety of ways, reducing costs for both the company and the customer.
Advantages of drop shipping for an ebusiness include:
- Lower shipping costs
- No need to ensure or pay for warehouse space for inventory
- The ebusiness can offer a wider variety of products from a wider variety of manufacturers, increasing customer appeal
- Less time spent managing shipping activities
- Reduced duplication of effort in the shipping department
- Lower risk, as there’s no need to invest advance funds in an inventory
Advantages of drop shipping for the customer include:
- Lower shipping costs, since the product is shipped directly from the manufacturer
- More products are available, since the ebusiness doesn’t need to make room for product inventory and so can deal with a wider variety of suppliers
- Products arrive more quickly, since they come directly from the supplier rather than going first to the ebusiness office and then back out to the customer
Overall, drop shipping offers advantages to both the ebusiness and the end customer. Many companies are using this simple technique to reduce overhead, increase efficiency, and pass savings along to customers. In today’s difficult economic climate, using drop shipping to reduce overhead and provide greater product sources and selection can give an ebusiness an important advantage–possibly just that advantage needed to stay in the black.