For those with good online retail businesses, drop shipping can be the key to their growth and success. This type of supply chain distribution strategy can be cost-effective and efficient. Drop-ship providers handle the fulfillment of goods and delivery of orders to customers on behalf of a seller. Listed below are six (6) benefits of partnering with drop shipping providers.
1. Lower initial costs – Setting up a dropshipping account can be as low as around $50 a month. Some may even offer flat annual license fees. Sellers can test products without the need to place initial wholesale orders. Storage costs are non-existent. There is also no need to set up business accounts with UPS or FedEx.
2. Reduce total inventory, packaging and shipping costs – Drop shippers handle the import and storage of products, take care of packaging and delivery. This offers a substantial reduction in operating costs for the business. Sellers can then pass these savings on to their customers in the form of more competitively priced products.
3. Only pay when orders are placed – Sellers only pay for the execution of orders once customers have placed them. Sellers also won’t have to worry about unsold stock.
4. Access to a wide range of product options – Dropshippers can offer a huge catalog of products. The products are not that cheap compared to getting them directly from the manufacturers. The total savings in logistics costs more than make up for the slightly higher prices of the products.
5. Faster order delivery, happier customers – Drop shipping providers would already have an effective delivery and distribution system. They can get the product to the customer faster and probably at a lower cost. For established sellers, this is very important.
6. Sellers can focus more on their business – Since dropshippers take care of the logistics, sellers can spend more time improving their business. Ultimately, this leads to helping sellers become more competitive.
Dropshipping providers are not without their problems. Back orders are one of the biggest challenges sellers face in a drop shipping network. Order shipping delays may occur if the drop shipper does not currently have the product in stock. There is also the issue of damage to products upon delivery. Moreover, all this can be reflected not on the drop shipper, but on the seller. Good online product supplier directories can help sellers find suppliers that are reliable, competitive, and offer quality products. Online product supplier directories are the best way to find reliable shippers these days. For a small fee, sellers gain access to thousands of manufacturers, wholesale distributors, and suppliers. If you have a product in mind for your retail business, you can almost always find a supplier with the help of these directories.
drop shipping provider [http://www.globalsuppliers.info] They offer many opportunities for the growth of your retail business. Many sellers swear by them. Make sure you find the best one to supply your business [http://www.globalsuppliers.info]. Online product supplier directories would be instrumental in achieving this.
