A few years ago when you’re wanting to start selling something the first thing you would afford about is what inventory you are going to stock and sell. The next question would be where are you going to source the stock from and how much is it only cost you to buy it.
For anyone who has gone through this, they would have discovered a huge amount of flow on questions and issues such as, am I actually going to be able to sell this many units, where am I going to store all the stock, how am I going to pay for the minimum order quantity, how am I going to manage the stock so I don’t oversell it, and the list goes on,
Drop shipping takes care of some of these problems as effectively you are not holding any inventory so you don’t have any of the problems that are associated with holding stock such as purchasing, storing and managing it.
Instead, once you receive an order you simply place an order with the supplier and ask them to ship it directly to your customer. No more pre-ordering, or micromanaging stock units. You don’t even need to arrange the shipping as a supplier does this all for you.
As you are not paying for stock up front, it also means that you have extra cash to put towards advertising and running your business. As there are no minimum order quantities, storage costs, or even the need to physically touch stock, you are not tied to a single stock type or product line. The most important thing is to ensure you only deal with reputable suppliers who know how to drop ship and can send your products out on time.