3 Reasons Drop Shipping May Be the Right New Business for You.

 In Drop Shipping, eCommerce, Fulfillment


Why is there so much excitement about drop shipping lately, even though Covid-19 has massively affected manufacturing and logistics? Is it right to dub it as one of the best ways to make money online during the pandemic? Well, let’s dig deeper into this.


What is Drop Shipping?

It is an order fulfillment model. It involves order placement by a customer from an online store, which then signals the original manufacturer of the products to fulfill your products for you. For example, if you are an online business, you do not need to invest in a warehouse or own inventory. All you need to do is connect with a manufacturer  or procurement specialist to make the inventory available. The inventory will be displayed on your online store, from where an interested customer can place an order. Order fulfillment is the responsibility of the supplier or manufacturer.

In simple words, you are the middleman between the manufacturer and customer. When the customer makes the payment, you keep your profit and pay off the supplier for fulfilling the order.

Related: 3 Quick Tips To Stabilize Your Small Business During the Pandemic.


Is It a Good Business Model?

Well, in the current pandemic, drop shipping is viewed as a lucrative model for the following reasons:

1. Investment

In order to run a drop shipping eCommerce business, you do not need to make a huge initial investment for a warehouse or inventory, unlike other business models. It is the manufacturer or supplier that directly ships the inventory to fulfill the order.

This reduces the initial investment to almost zero. This makes starting a drop shipping business real easy.

Related: Are you Failing at eCommerce Order Fulfillment?


2. Marketing

Since your focus is not on procurement, you can spare maximum time for marketing and business promotion. Harness the potential of automated apps to automate the entire process of order fulfillment, so you can focus more on reaching out to a wider audience. With such a business model, you can expect to reap great monetary rewards, since the investment required is almost zero.

Related: 5 Major Shipping Problems Resolved For the Holidays.


3. Expand Your Niche

Since you are not responsible for warehousing or stocking products on shelves, you can offer a variety of products. The scope of products in a drop shipping business is immense and you need not limit yourself to selling one or two products. You can offer a wide variety of products. With a wide variety of products, you could make money even though you only have small quantity orders from customers. Selling small quantities of a wide variety of products gets you the numbers you need to jump start your new business. As you find out what sells best and what does not sell, you can start narrowing your product range and concentrating on the better selling products.

You have the opportunity to tap into a variety of products and niches. When you do this, you expand your online business beyond one kind of a customer base. It is like trial and error, but better.

Related: Should You Offer Free Shipping or Fast Shipping?


Bottom Line – What are you waiting for?

Setting up an online business, that too, drop shipping, promises to bring you greater rewards. Come up with a plan of action, jump onto the Internet bandwagon, and put in all the hard work to reap dividends.


Click here to Read about the Steps We Are Taking to ensure Business Continuity for Our Customers and Our Team.


Elite OPS has been a leader in Shipping and Logistics for over 25 years. Contact Us to find out how we can help you Save Time and Money on Procurement as a Service, eCommerce Order Fulfillment, and Kitting and Assembly.

Call 855-553-5490 or Click Here to Request a Quote!


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