Everything You Ever Need To Know About Dropshipping

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Everything You Ever Need To Know About Dropshipping
23 Oct 2017

You may have heard of dropshipping as a fast and easy way to make money. While it can be a very easy way to sell online with none of the hassle of managing a warehouse yourself, dropshipping can be a complicated process and one to be cautious about. While you may not be managing your inventory yourself, there are multiple reasons to be aware of how dropshipping can affect you and your business. Curious about what dropshipping is, how it works, and whether it is right for you? Fear not, we’ve got our answers all lined up for you.

What is Dropshipping?

It’s good to get clarification on what dropshipping is before you start it. Dropshipping is a method in supply chain management where a seller doesn’t physically keep the products they sell. Instead, the store or seller will have an item shipped once it has been ordered directly from a third-party facility. This third-party wholesaler or manufacturer will be the keeper of the inventory, so that you as a seller do not have to. This means that the products you sell are fulfilled per purchase, and you as a seller never actually see or handle the product that is being shipped.

So, Is It Right For Me?

Is dropshipping worth it? Why is dropshipping beneficial to me? There are multiple advantages to dropshipping your inventory:


No Investment Necessary
If you’re a small-to-medium sized business just starting out, chances are you don’t have the capital to invest thousands of dollars in inventory you might not be able to sell for months. It can be difficult to start up a business from scratch. Having an option like dropshipping is great because your money is not tied up in inventory all the time, which means you have more resources that you can allocate to things your business needs, such as sales or marketing efforts.

More Products to Sell
You can sell a large variety of products with dropshipping because you are not buying the inventory yourself, and not choosing where to spend your money. If your third-party wholesaler has many different products to offer, now you do too!

You Can Do It From Anywhere
Nowadays you can run a business from anywhere with a stable internet connection and a laptop, and dropshipping makes that even easier. This method gives you the freedom to be anywhere and grow a successful business, whether you’re just one person or a group of over 200.

Less Risk
If the reason that you’ve been holding back from starting your business is because of the risk, dropshipping’s got your back. Since you’re not managing a warehouse, buying, tracking or shipping inventory, or handling returns, you can even start selling as a side hobby, with little to no risk to you! That way, you have the autonomy to change your mind in the future, or even scale higher. Your future is in your hands!

How Managing Dropshipping Using a WMS Can Help

To understand how an inventory management system, (also known as a WMS) can help you as a dropship business, you should first understand how the sales channels are used.

Your sales channel, such as Amazon, will know that the items you have placed for sale are dropship items. Once the order has been placed, you will have to download the sales orders into an excel file. Next, you will send this information to the third party vendor manually. The vendor will then match the order with a tracking number, and then send that tracking number back to you. You then send out that tracking order to your customer or back to the sales channel to be paired with the order.

Read More www.logiwa.com/dropshipping-online
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