Advantages and disadvantages of Drop Shipping

Advantages of Drop Shipping 

There are a number of advantages and benefits associated with drop shipping such as while dealing with a drop shipping business you can control your own margins and can tag your own price without bothering about MSRP that is suggested retail price. There is no need to maintain a physical inventory on hand to deal with bulk orders as this would be done by the wholesalers at their end. There is no need to worry about high start up investment and deciding a particular product to sell as you can place multiple products under different categories on your website with the help of drop shipping concept. You can always test new product ideas with drop shipping and can be flexible with the customer as you don’t have to be worried about inventory and product management. Drop shipping let you enjoy a wide market range as you can simply sell your product in a number of different markets enjoying a distant outreach.  

Disadvantages of Drop Shipping 

There are certain complexities involved with drop shipping and one of the most important thing is to find reputable and trustworthy wholesale suppliers. One of the biggest disadvantages of drop shipping is that the major part of the business involving the product delivery is dealt by the supplier and you are simply unaware if something goes wrong in this phase of shopping. There is no way you can check the quality of products unless and until customers provides you the feedback of purchased product. If you are working with several drop shipping companies at the same time this may lead to high shipping costs and delay in deliveries due to confusion. When you are involved in a drop shipping business you are the sole responsible for each and every error at the behalf of a supplier such as lack of products in the stock, quality issues, or delay in delivery.  

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