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The Advantages and

Disadvantages of Dropship
Introduction
Dropship is an ecommerce
business model that allows you to sell
product from your store without investing
capital in inventory, warehouse, and
fulfillment. When a customer buys from
the vendor. Dropship allows you to cut on
the inventory bills, shipping hassles and
retail fulfillment issues. As such, it is an
attractive ecommerce model for many
small and homebased online
entrepreneurs. Besides having a lot of
advantages, dropship also has several
disadvantages of dropship in this essay.

The Advantages of Dropship


 Doesn’t require large capital
Dropship business is known as a
business with minimal capital.
You don’t need to spend any
capital if you use free marketing
techniques. Because you don’t
need stock in your store, buy
production employees, and you
don’t even need to spend money
on a warehouse or production site.
 Don’t need to bother care for
stock items
Stock items have become
business suppliers. You can focus
your mind and energy on
marketing and building a list. In
order to avoid miscommunication
with suppliers regarding the stock
of goods, competent supplier is
requested. If it can be approved
the supplier is indeed experienced
in supplying goods for retails and
dropship.
 Practical
Dropship business is also a fairly
practical business. You just copy,
paste the product, ask your online
shop, then you advertise. The
customers will come
automatically.
 Very small risk
Because it does not need to
produce its own goods, risk can be
minimized. At the very least,
compiling your business doesn’t
work, your don’t need to push the
rest of the inventory and also
accept employees who are already
in production.
 Can be run everywhere
Because it’s practical, just
marketing other people’s
products, you have a very flexible
time and place to work. You can
start from your own home, or you
can do it while hanging out at
your favorite cafe or while
waiting for your child to come
home from school.

The Disadvantages of Dropship

Business definitely has advantages


and disadvantages. There is no business
that is always more, of course there are
shortcoming in it. Likewise with the
Dropship Business. There are a number
of weakness that you should know before
starting Dropship Business.
 Don’t have access to monitoring
the product stock
Because all products are in the
supplier, you don’t have the
power to check how many
product stocks are left in the
supplier. It could be that there still
100 pcs in the morning, only 50
pcs in the afternoon. It could be
that the morning is still there, the
afternoon is sold out. There you
must familiarize yourself with
this kind of uncertainty.
 Small benefits
Supplier usually provide very
small profits for dropship. It’s
different if you act as a reseller or
produce your own products.
Because the profits are small, you
must be very clever in marketing.
So that the small profits can be
accumulated into large profits,
along with the increasing number
of items sold.
 Difficult to sell items that never
been hold
Because the item is in the
supplier, you may not know how
the quality of the item will be sent
later. This is where you trust with
your supplier must be tested. If
later there is a missing defect
from the item sent by your
supplier, you must be prepared to
accept complaints and
compensation for the customers.
 Risk complaints increased
customers
Refer to point number 3. Since
you don’t hold the item, you can
not control the stock and check
the condition of the item. Besides
that, because you don’t have
access to an update on the amount
of stock, you might experience
run out of goods even though you
have already been paid by the
customers.

Conclusions

These deficiencies require you to


be prepared and mentally resistant to face
customer complaints. Every customer
certainly wants goods to arrive in good
condition. But if you are in dropship
position, it can be little difficult for you to
do. Don’t be too long in the dropship
business. As much as possible set aside a
portion of the profits to buy products
directly from suppliers, so you can
monitor the stock and condition of your
own items. But that’s later, when your
marketing system is running. So that your
focus in not broken between marketing
with the products.

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