When running your online
store it's important to consider every factor
to make sure you're being cost effective. Shipping can take a huge
chunk out of your budget, but can drop shipping be a help or a
hindrance? Take a look at this article and decide what's right for
What is drop shipping?
Drop shipping means the products you
sell on your online store are shipped from a wholesale supplier. So
when a customer buys from you, you simply forward their details to
the manufacturer, and they will take care of the shipping.
- You don't have to buy in bulk
Drop shipping is good for new
businesses that don't have a lot of money to play with. Usually
manufacturers will make you buy in bulk for their products, and you
may end up with more stock than you know what to do with. Drop
shipping means that you can make one single order and they will ship
it to your customer.
2. You can open your online store
If you're just about to launch
your store, drop shipping means that you open
it much quicker, than if you were to stock the inventory yourself.
You don't need to worry about investing heavily in products and you
can still offer as much stuff as you'd like on your website.
3. You are free to run your store
As you aren’t tied down to a
warehouse where all your inventory is housed, you are free to run
your store from anywhere that has connection to the internet! Just
think about running your store from the poolside, or something
4. It makes life hassle-free
Well, as hassle free as it can be!
There is a lot of work that goes into an online store and if you
don't have a huge team of people working for you, it can get tough.
The good thing about drop shipping is that you don't need to worry
about dealing with the shipping process, freeing up time for other
5. It's a tried, tested and approved
If you've never heard of drop shipping
before it may sound like a dodgy deal, but it's actually really not.
Many companies use drop shipping, including Amazon and Sears, and if
you put the research in, you'll be able to find plenty of reputable
6. You'll save money
Yes drop shipping will help you save
money. You will save on having to purchase in bulk, shipping and
packaging costs, and even paying for a place to store all of your
- You lack full control
So if you decide to use drop shipping,
you won't be able to manage the customer's expectations as well as
you could if you were to take care of your own shipping. Some of the
problems you may run into include manufacturers running out of stock,
or late deliveries – which could fall back on your store.
2. You could be missing out on
is an important part to selling online, but
because you don't package the products yourself, you won't be able to
add coupons or offers inside the customers package - meaning you may
lose out on some serious sales potentials!
3. It's harder to sell
Customers like to buy from people who
are experts in what they do. The problem with selling products that
you have never seen is that if a customer comes to you with a
question, you may not be able to answer it straight away, and the
customer will have to wait until you have spoken to the manufacturer.
4. There's more competition
Using a supplier means that the
products you are selling are not unique, so there will be a bunch of
other people selling the same stuff as you. This can lead to poor
margins as your competitors may lower the price to try and out-do
5. Drop shipping fees can be off
Different suppliers will charge
different rates and the last thing you want to do is turn your
customers away because the shipping costs are too high. Make sure you
take into account who is offering what.
6. You can't check quality
As you are not the person putting the
product into its package, you can never really be sure whether it's
of a good quality. The last thing you want to do is ruin your
reputation and if the product isn’t up to standard then you could
risk doing that.
When it comes to drop shipping, there
is no right or wrong answer – it really depends on what you think
is right for your store. It definitely provides an easy way to get
your shop up and running, and testing different methods is definitely
the way to go to succeed with your online store.
If you do decide it is the method you
would like to adopt for your shipping needs then make sure you do
your research and find a reputable supplier. Take a look at
as they offer a directory of certified drop
shippers that you can trust.
Don't forget to let us know!
Would you, or do you currently use drop
shipping for your store? We'd love to hear your thoughts in the
comments below. Or feel free to get in touch on Google+,
– speak to you soon!
About the Author
We're a bunch of nerds, a few cat people, several musicians, numerous gaming addicts, countless beard aficionados, and possibly a hipster or two. Since 2005 our team has been building one of the world's most powerful E-Commerce platforms designed to do stuff other platforms can't.
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