Dropshipping Benefits

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Less Capital Is Required – Probably the biggest advantage to dropshipping is that it’s possible to launch an eCommerce store without having to invest thousands of dollars in inventory up front. Traditionally, retailers have had to tie up huge amounts of capital purchasing inventory. With the dropshipping model, you don’t have to purchase a product unless you already made the sale and have been paid by the customer. Without major up-front inventory investments, it’s possible to start a successful dropshipping business with very little money.

Easy to Get Started – Running an eCommerce business is much easier when you don’t have to deal with physical products. With dropshipping, you don’t have to worry about:

  1. Managing or paying for a warehouse
  2. Packing and shipping your orders
  3. Tracking inventory for accounting reasons
  4. Handling returns and inbound shipments
  5. Continually ordering products and managing stock level

Low Overhead – Because you don’t have to deal with purchasing inventory or managing a warehouse, your overhead expenses are quite low. In fact, many successful dropshipping businesses are run from a home office with a laptop for less than $100 per month. As you grow, these expenses will likely increase but will still be low compared to those of traditional brick-and-mortar businesses.

Flexible Location – A dropshipping business can be run from just about anywhere with an internet connection. As long as you can communicate with suppliers and customers easily, you can run and manage your business.

Less Capital Is Required – Probably the biggest advantage to dropshipping is that it’s possible to launch an eCommerce store without having to invest thousands of dollars in inventory upfront. Traditionally, retailers have had to tie up huge amounts of capital purchasing inventory. With the dropshipping model, you don’t have to purchase a product unless you already made the sale and have been paid by the customer. Without major up-front inventory investments, it’s possible to start a successful dropshipping business with very little money.

Easy to Get Started – Running an eCommerce business is much easier when you don’t have to deal with physical products. With dropshipping, you don’t have to worry about it.

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