With everyone and everything being online nowadays, launching a web store opens opportunities to sell to people anywhere in the world. But what if you don’t have the necessary funding to order all the merchandise you need and get the company up and running? Dropshipping is becoming more and more popular and maybe the solution to expensive startups.
What is Dropshipping?
Dropshipping allows store owners to fulfill orders directly from a wholesaler or manufacturer, so you don’t have to worry about inventory management or shipping. When someone places an order, you transfer the order to a dropshipping partner who handles all the inventory and logistics. This takes a large burden off the store owner as they are only responsible for marketing and selling the products.
The Benefits
Starting a business usually involves a lot of upfront costs to get everything going. With dropshipping, you can launch without investing a lot of money since you aren’t purchasing any merchandise. This also means less hassle and more time to focus on marketing and growing the business. Dropshipping lets you easily expand your product offerings, making testing new products with your audience easier and less of a risk.
The Drawbacks
Just like anything else in the business world, there are some downsides to dropshipping. While managing logistics can be complicated, the logistics for dropshipping need to be planned almost perfectly and in advance to avoid poor customer service, improper tracking numbers, incorrect addresses and shipping delays. You also must work hard to provide the best customer service possible and set yourself apart from other companies that are selling the same products as you.
Don’t Make These Mistakes
Laying out a solid strategy from the beginning to avoid common mistakes is important. With all the extra time you have from not fulfilling and shipping orders, don’t expect your products to sell themselves. Use it to make your marketing campaigns the best they can be and find ways to stand out from your competitors. Also make sure you don’t rely on one supplier. If they’re out of stock of a product or they shut down, you should always have a backup supplier ready to handle an order the other one can’t.
If you want to start an online business but don’t want to deal with hassle of selling inventory yourself, dropshipping offers the same benefits with little startup costs. With a web store powered by k-eCommerce, you’re in charge of the look and feel of the site, with support for dropshipping from multiple warehouses. If you’d like to learn more about dropshipping, contact our team.
About k-eCommerce
As a Microsoft Gold Certified Partner, k-eCommerce is a recognized leader in providing eCommerce and ePayment solutions for Microsoft Dynamics AX, GP, NAV and CRM. With offices in Plymouth, Mich. and Montreal, k-eCommerce develops and delivers fully integrated eCommerce websites, payment processing and online bill pay solutions to businesses of all sizes and types around the world. k-eCommerce serves the Microsoft Dynamics partner channel by providing sales and implementation assistance as well as support.
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