Benefits of Drop Shipping: A Sellers Advantage

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Drop shipping is becoming increasingly popular in recent years and for a good reason. It has so many benefits that can help business in all kinds of ways, no matter if you are the seller or wholesaler. If you are looking at maximising and growing your business, this will probably be one of the best decisions you can make, especially if you are just starting out. Here are some benefits of drop shipping and how it can assist you as a seller.

Save Money On Inventory

save money on inventory with drop shipping

One of the key benefits of being a seller who drop ships products means that you don’t actually need to purchase these items as part of your stock. You can just add them to your website and they will appear like any other product on your site. The difference is, when someone places an order, the wholesaler will be the one to ship out the product on your behalf.

You don’t need to worry about the price of shipping or buying products that don’t sell. If they move quickly, fantastic. If you never sell any, it means you didn’t save money on purchasing items that don’t work for your business. Let’s face it, purchasing minimum quantities for 100 items or more costly and impossible for most small businesses.

Don’t Pay For Warehousing

Benefits of drop shipping means you can save on warehousing

In addition to not having to pay for the physical stock, this means you don’t need to pay for the warehousing space either. Finding a home for all your items can be tough if you are a small business. There are only some many rooms in your house or shelves in your garage before you need to look for a bigger place. This now means you can grow your business without needing to pay for storage space or hassle your family members for a section of their garage.

Have More Variety For Your Customers

Provide your customers with choice

By using drop shipping, it not only benefits you but your customers too. This means that they will be able to purchase more items in one place, which will hopefully increase the average value order of their shop. We know that customers hate having to purchase from multiple stores, which is why market places are becoming increasingly popular, as they can do it all in one transaction.

Give your customers the opportunity to have a choice. It won’t cost you anything but will mean the world your consumers. You have the ability to select products suited to your brand so customers won’t even know they are drop shipped if you wish. We do recommend letting them know though.

Make A Commission On Sales

Make a commission on sales

Since you didn’t physically purchase the products, it means that you won’t make as much money on the markup as you could if you purchased out right. Instead, you’ll make a commission on any of the sales from your site and the wholesaler who ships the items needs to worry about the rest. No overhead costs to you means your almost like a brand ambassador. You can the wholesaler are the ones who come up with the agreement to how much money you can make from the sale. Some wholesalers are happy to go the whole 50% of the sale, where others can only offer 5%.

Overall, the benefits of drop shipping outweigh any negatives for the seller. Wholesalers who drop ship also benefit so if you have items you would love to put online for others to sell, you have the ability to do that too. We wish you the best of luck with your business and are excited to see your brand flourish.

Start Selling Now

Get started drop shipping now on Elvenda.

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