The 4 Benefits of Drop Shipping For an Online Store

Drop shipping is one of the many strategies that you can use to fulfill orders for an online store. It is a relatively simple strategy, but it has some real benefits to it. One of the biggest benefits is that you don’t have to keep nearly as much material in inventory which is extremely helpful as many online storefronts are run by one or two people out of their home. Their garage or a shed probably serves as their inventory space. This means that they may not have enough room to hold many items in stock, but drop shipping can eliminate that hindrance and make keeping inventory stocked much easier as well as provide the additional benefits to the home-based business.

Get to Market Fast

As Practical Ecommerce points out, having a drop shipping arrangement is a great way to make certain that you can get products to market faster. This is because you don’t have to wait for the items to come in and, even more importantly, you don’t have to gamble on how many of those items you need to hold in stock to keep customers satisfied. You simply send the order to the manufacturer or a different warehouse and they’ll send the article out for you, with no risk involved.

Keep the Investment Low

Everybody in retail knows that inventory is the equivalent of loss. The same article points out the fact that drop shipping is a great way to reduce the amount of money you need to invest. If somebody is drop shipping items for you, they are taking the risk in owning those items, keeping them warehoused and so forth. All you have to do is market them and get people to buy which is a great way to make sure that you maximize your profit on every item.

Practical Growth Strategy

Online Business points out that many of the benefits of drop shipping are extremely practical all around when it comes to growing your business. If your online store grows to its maximum level, dictated by the amount of property you have to store items in and the amount of warehousing you can realistically handle, you may find yourself at something of an impasse as to how you keep the business afloat.

With drop shipping, when you want to add a product, there usually aren’t any logistics involved with it. As long as the warehouse handles fulfilling the order for you, all you have to do is add an image and a description to your e-commerce establishment and make it available for purchase. That’s it – there’s nothing else to it! Most of the time, businesses that wanted to expand would have to think about where they were going to store those items and that may actually make it completely impossible for them to add an item to their inventory.

No Special Storage

Depending upon what you sell, there may be special storage requirements. For example, if you ran an online art store, you would obviously sell paint and paint can be a hazardous material. By utilizing a drop shipper, they handle anything complicated about storage. Beyond just having the space, some items may not be safe to store in the home. With a drop shipper, they handle everything, including making sure those items are shipped correctly when they do hit the mail or the parcel service.

With all of these benefits in place, it’s difficult to consider passing up drop shipping for any business!

Written by Don Elfrink. Don is the owner and operator of AutoMatStore.com, and specializes in providing auto floor mats for many makes and styles of vehicles. AutoMatStore utilizes the cost effective approach of drop shipping to keep overhead costs low. 

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.

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