A fulfillment process that benefits the seller and the consumer, the term dropshipping might be relatively new but the process has been utilized in retail for years. Instead of the traditional retail model where a retailer needs their own warehouse space and full-scale fulfillment systems, dropshipping allows for the retailer to sell to the consumer without ever needing to be in contact with the product sold.
One reason that dropshipping may have evolved so rapidly in today’s landscape is because of the capabilities of today’s computers. Taking, tracking, and monitoring orders online has never been easier. Before computers, manual recording was the way to oversee sales and stock. Computers enable sellers to do more work in less time. This means being more productive and having the ability to oversee more sales than what companies previously were capable of handling.
Abundant delivery methods also benefit dropshipping. From USPS to UPS to FedEx and more, there are ample methods available to get your goods to your client. Amazon even created and expanded its Delivery Service Partner Program relatively recently, enabling entrepreneurs to start their own delivery companies. This helped them shorten their delivery time, along with creating competition with delivery companies.
Though increasingly popular, dropshipping isn’t always the most effective or customer satisfaction inducing business model. Often dropshipping suppliers send their products from China or other overseas locations. This equates to the consumers often waiting weeks, instead of days, to receive their products. Though some making purchases don’t mind longer wait times to receive their orders, others would rather get their items more quickly. That means drop shippers, like all retailers, need to know their customers and their expectations to meet their needs.
Even with dropshipping, marketing and advertising is important. A misconception that occurs with some who are newer to dropshipping is they think that they can easily make money with little or no effort. It’s not surprising that without advertising the products you are selling, people will not be aware of their availability. Some drop shippers mistakenly rely on the website selling their wares, such as AliExpress, to create enough visibility for sales. With dropshipping competition growing exponentially, this mistake can be costly.
There are certainly benefits of dropshipping. Maintenance and other related costs are lower than traditional retail. Shipping and warehouse fees are the responsibility of the dropship provider, not the drop shipper. Not having the items in hand means the variety of items that can be sold is expanded. The lower start-up costs mean that entrepreneurs can get started more easily.
Drawbacks for dropshipping also exist. Competition is growing, meaning it can be harder to stand out. Profits for drop shippers are often lower. Customer satisfaction may be more difficult to achieve when there is less interaction with the products.
As with most everything, dropshipping is constantly evolving. From the fulfillment methods to the tracking software, the changes to dropshipping methods and accessibility have rapidly affected how buyers purchase online. Though some retailers will continue to only sell at typical eCommerce and brick and mortar locations, for those seeking to expand, dropshipping does provide another setting for a revenue stream. If your company hasn’t already looked into dropshipping, maybe now is the time.
About Bed and Brand
Bed & Brand is your premier wholesale and dropship source for all things bedding - from pillows to bedsheets, to mattress protectors, and more. We only sell the highest quality bedding products at the best prices. Bed & Brand was started with the mission of providing top-grade, value-priced, bedding products to businesses like yours. Our low prices and our high-quality products are what makes your business successful. Our expertise in branding and private labeling make your business stand out from the crowd. With Bed & Brand by your side, you know you will receive exemplary customer support, vast product selection, and years of experience from our certified experts.