Low Capital Requirement: With dropshipping, you don’t need to invest thousands of dollars in inventory. Instead, you only purchase a product when you have an order to fulfill.
Wide Product Selection:
When you don`t have to pre-purchase all the items you sell, you can offer a significantly larger number of products to your customers.
More time and resources to scale up your business:
In traditional retail business model, if you want more profits you have do more work and invest much more.
With dropshipping, all you have to do is send more orders to your dropship supplier and then let them handle everything else, while you earn the profit. You are left with more time to market your business and scale up your operation!
Without need to invest thousands in inventory, the risk involved with starting an online store is dramatically reduced.
If things don’t work out, you aren’t stuck with thousands of product, which you have to sell at a loss.
CONS OF DROPSHIPPING
Because very little capital is required to start a drop shipping business, that low barrier to entry means a lot competition. The popularity of the dropshipping business means more and more retailers in every segment and niche of different markets.
Managing inventory :
Keep track of different suppliers and orders is nearly impossible.
Experienced ecommerce owners know that market fluctuations aren’t always predictable.
No control over the supply-chain:
Doing dropshipping means you will never see the products you are selling and you have little knowledge about the suppliers you are dealing with.
On top of that, it`s impossible to have fully control of the product quality and shipping time.
When you use more than one supplier for your dropshipping business, your customers may receive over 2 packages when they place one order from your store.
if the supplier messes something up, it’s still the retailer’s fault as the brand is the face of the whole process.