The changing E-commerce business structure with the introduction of drop shipping.
Dropshipping has gained massive recognition in the past few years due to its simplicity, effective framework and easy deployment. By its physical properties, those online retailers who adopt the model of dropshipping certainly get engaged in something that is pretty similar to conventional e-commerce platforms. As today the customers only stay concerned about the product, its quality, durability, reputation of the online store, and price, instead of thinking about where they are stocked and how they are shipped, this procedure turns out as a really promising solution in the near future.
Recent research shows results that drop shipping has turned out as one of the most credible, simplistic and easy solutions for most of the entrepreneurs, especially start-ups.
So what is drop shipping?
There is probably no need to explain the concept of e-commerce, but for people who are new to drop shipping, here is a bit more detailed description of what it is.
Drop shipping is basically one such business structure where the specific retailer doesn’t hold any inventory. The products are not possessed and kept in a large amount to ship later as the orders are being placed. Instead of that, all the orders are directly shipped and fulfilled from the wholesaler. As soon as an order is placed on your website, you’ll purchase the item from your supplier who will take charge of packing, shipping, and delivery. This practice gives more room to the retailer for promotional tactics and effective marketing strategies while even reducing the burden from their shoulders.
Most of the big name brands within the world of online shopping and e-commerce business have started adopting this model and have become a billionaire in their own reign! Whether you are a seasoned entrepreneur or a start-up, drop shipping definitely has the power to change all those traditional norms of stocking inventory in warehouses that leads to a lot of nuisance, confusion, and waste of your hard earned money.
How drop shipping is going to be the next big thing in the e-commerce world?
Started by a few online retailers, the framework is now being appreciated and adopted by more and more people across the globe and is increasing more and more every year. While it reduces all the nagging issues and complications that arrive while stock-based dealing, it also provides the retailers with enough room for working on the essential tasks of the day. Definitely, they are the link pavers between customers and wholesalers, and with added on liberty, they can increase their focus levels on doing this task much credibly. Here is why drop shipping will surely change and rule the whole e-commerce market in a few years!
Storage issues and warehouse charges will vanish: The biggest challenge with traditional e-commerce platforms is that of having to face creating reliable, secure, safe and huge storage spaces for their product inventory. And, when it comes to huge products such as appliances, the responsibility increases on another level. Also, perishable goods need to be sold as soon as possible before they get prone to expiry. When the quantity of products goes on to be in thousands and millions. Finding enough space is nearly impossible. Added to this, more manpower is required to take care of the products which are stored until they are not out for shipment. And if you are a start-up, you can never pave so much of your budget in doing something as such! Thus, drop shipping directly eliminates all the complications regarding building, renting or purchasing a warehouse. The products stay with the wholesaler till an order is placed, and they are instantly informed by the retailer regarding the customer requests which can be filled easily!
Save a lot of time and money during product sourcing: As most of the products being sold online are shipped through various countries, the freight charges, import-export rates, and other similar things are exceptionally high if a retailer plans to build and hold inventory. Also, even before the products are promoted and sold, the things have to arrive in the warehouse which is a big negative point. The whole process takes up your lot of money, resources and useful time for sure. However, the scenario is completely opposite when you opt for drop shipping. It allows you to stay away from all such charges, and the wholesaler directly takes care of all the shipping and delivery alternatives, charges, storage options, and other things till the product reaches your customer. This is one major reason why retailers are now using drop shipping through which their business ideas can flow with freedom.
Order fulfillment becomes much easier: Every organization whether it’s offline or online must remember that the satisfaction level of their end customers is the sole thing which decides their future and faith. A lot of e-commerce founders and retailers don’t have enough time to pick up the products, pack them and ship them accordingly. For convenience, all they did earlier was outsourcing the shipping responsibility to other organizations. At times, if during shipping the product experiences damage, all the losses were born by the retailers on their side. However, with the passage of time and introduction of drop shipping, retailers have really understood that to de-clutter the operations and to avail highest possible benefits, the best way is to connect the direct wholesalers with the customers who will ultimately avoid all such obstacles in the order delivery process.
Thus, with enhancing competition and lesser availability of time, every smart entrepreneur is trying to fulfill both the customer and manufacturer need through their smart tactics. It’s not that traditional e-commerce practices where unappreciable, but the fact is that things have to gradually grow and grow with time. While exceptional taxes and similar rates are hiking on products and their shipment, it becomes really complicated for the retailers to store things in their warehouses.
The fact can’t be denied that drop shipping is an exceptional solution which can solve all the complications and can reduce the burden from the shoulders of retailers to another extent. So, if you are also planning to bring your e-commerce start-up, try drop shipping and see how your performance, revenue, and profit can grow to another extent