Drop Shipping is supposed to be one of the easiest methods for entrepreneurs to earn money. That too in a country like India, wherein risk is very very high. So, what is dropping shipping? What does it mean? We will be here to answer all these queries. It is supposed to be a cost-effective method of running an e-commerce business. Drop-Shipping ensures that Entrepreneurs run the show without keeping much inventory. The best thing about drop-shipping is that you will be buying the products placed by your customers only after the confirmation of the buyer. Stay with us to know more about this.
It seems that by 2020, the E-commerce business is going to accomplish $120 billion in revenue. Henceforth, whosoever wants to kick start with business, E-commerce is the best choice.
Isn’t it Safe with the Marketing Channel?
Marketing Channel consists of Wholesalers, Retailers, and the End Customer. Why isn’t it safe? The answer seems to be simple as the cost seems to be very high for the end customer when it has to pass through the retail and the wholesalers. The wholesalers have to keep stocks prior so that it will be easy for them to sell it once the order is placed. The probability of placing the order is not at all 100%. If the order dint gets placed, it is totally waste investing on that particular product. Apart from these, they even have to bare the cost of shipping.
The salaries that they have to make for the employees is also considered as one of the major expenses that the company has to hold the responsibility for. When the company is in the initial stages, you can somehow manage but when it starts expanding, the expenses eventually increase. Henceforth, it is always best to play safe.
We would always recommend leaning on dropshipping when it comes to e-commerce. We hope this answers most of your doubts regarding what is dropping shipping. Just in case you have any further questions, you can always ask us in the comments section. Stay connected to us for more such sections and thanks for reading!