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    eCommerce Solutions Drop Shipping Explained

    Drop Shipping ExplainedHave you ever wanted to open your own online store but really do not know where to start then dropshipping may be for you, dropshipping is a form of online shop that sells products but but does not handle or store the products in there store.

    Instead the shop owner purchases the product from a third party wholesaler at a discounted price, then the shop owner adds there markup and the third party supplier ships the product out to the customer that purchased the product so the shop owner buys the products only when needed saving the expense of stocking inventory.

    There are many benefits with dropshipping over other types of online stores, you can launch your online store with out the huge expense of spending thousands of dollars on inventory before you even sell any products, this is a great advantage as this money can be better spent on marketing your shop to attract new customers, you do not need to rent a warehouse to store the goods, you save a huge amount of time in not needing to package the goods ready to ship to customers, you do not need to handle time consuming product returns and you do not need to worry about managing stock levels.

    Other advantages of dropshipping include low overheads, you can run your entire dropshipping store from the comfort of your own home, the shop can be located in any city and in any country around the world with internet connection, there is a massive range of products that can be sold from a dropshipping store and when your online store becomes successful you can scale up the dropshipping store very easily just by adding more products to your online shop, so as you can see there are alot of benefits to dropshipping over a retail store.

    The disadvantages of dropshipping include low profit margins on the products you are selling as many merchants drop there prices to rock bottom in order to sell products, dropshipping is very competitive there are thousands of other online stores out there and they are all selling the same or similar products that you are selling, you are relying heavily on your suppliers to keep enough stock to honer your orders if your supplier runs out of stock your customers will not be happy and somtimes the suppliers make mistakes that can impact your online store.

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