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What is Dropshipping?

Dropshipping is simply when a shop doesn’t hold stock, but the shop’s supplier does, and they then send it directly to the customer. The box the customer receives will generally also only contain the shop’s info and nothing that indicates it came directly from the supplier.

As a shop owner, that must seem a particularly great idea. You then don’t have the risk associated with holding a vast inventory, you also don’t have to worry about ordering 50 frames in red, and it turns out this year’s colour is blue. You’ll also not be paying for the storage of these items, and you won’t need to invest in a warehouse staff.

What are the benefits of dropshipping for me?

  • Lower capital investment. As we mentioned above, your overheads will be lower, and this will keep your monthly overheads down as well. If you’re just setting out on your retail adventures, this can be the difference from being able to start or your idea just remaining a dream. You’ll also only buy the product when a customer has purchased it, meaning you’ll have less risk and cost associated with getting that first customer.
  • Easier to start. You’ll have fewer logistics to worry about when you start. You’ll not need to worry about packaging, what freight companies to use, tracking your stock levels, or have to handle returns.
  • You can start at your house.You won’t need business premises to start a dropshipping business. You’ll just need the get-up and go to get get it started. You might even be able to keep your current job going until you have the business working out.
  • Easy to build. Imagine you hit the ground running. You nail the marketing, and you picked the right products. Your orders are 5x what you expected, and it is a lot easier to scale a dropshipping business up to meet this demand. Imagine the extra works you would need to hire, extra space, and the logistics of growing at the speed if you owned /rented premises.

If you are interested please feel free to contact luckysix@icancycling.com