Home Marketing The Pros and Cons of Dropshipping

The Pros and Cons of Dropshipping

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Pros

Escape the burden of inventory

Let’s face it: handling your own inventory is a major hassle. Not only do you need space—and a lot of it, if your business is successful—but you also have to track the inventory and maintain its quality (i.e., if your product is fragile or perishable, you have to have systems in place to protect it).

Decreased overhead

In addition to being a hassle to manage, inventory can get expensive. Most retailers stock up on inventory in large quantities to get the best price and maximize their profit.

Increased product variety

Without the limitations of space and overhead cost, a retailer is free to offer their customers something everyone loves: more choices. Drop shipping allows retailers to have a vast, ever-changing inventory that makes sales more likely.

Low Risk

When holding on to inventory, there is a lot of pressure for a retailer to move all of it. Unsold products are money lost for the seller. The pressure of this risk can cause delays in changing inventory and updating the online store.

Cons

Less control

When you hand over the shipping process to a third party, you have to let go of some control. For some of us, that can be an excellent exercise in character development, but it also comes with a hefty dose of risk.

Reliance on stock

While one of the benefits of drop shipping is that you are free to react to customer demands, it also means you are subject to sudden stock shortages. If an item becomes popular overnight, you might miss out on selling it because your supplier has no more stock.

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Hi, I’m Raj Kumar CEO and Founder of MakeDoIt.Com Website, a Professional Blogger from Tamil Nadu, India. I started MakeDoIt as a passion and helping them to make money on their blog. Here at MakeDoIt, I write about Starting & managing a blog, WordPress, how-to, Social Media, SEO and Making Money online.

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