Delivering your items to their intended destination can be accomplished in many ways. When shipping to Bahrain, you will want to utilize the best method at your disposal. One of the common methods is dropshipping. However, before utilizing it, you need to be aware of dropshipping pros and cons. This article is going to help with that, by explaining them in some detail.
Dropshipping pros and cons – Things you should know!
The main reason people use dropshipping is to remove the need for a warehouse. By eliminating tasks such as packing, picking up, shipping, and so on, you will be able to make the whole process more efficient. It is similar to hiring Easy Move Kuwait to relocate your belongings. You will not need to have the tools and the truck yourself. But this is not as easy as it sounds. First, we need to look at the dropshipping itself to figure out why.
What is dropshipping?
In a nutshell, dropshipping means that instead of you having the facilities to store your inventory and having the items in stock, you contact a supplier who ships the item directly to the customer, possibly via any of the freight forwarding companies in Kuwait. Thus, you never actually even see the item that your customer asked for. Sounds great, right?
And it is if you set it up correctly. Let’s look at a couple more benefits.
If you utilize drop shipping, you will be having:
- A faster start-up
- Small overhead cost
- Less risk
Because you don’t need to figure out warehouse issues, you will be able to start your business much faster. No hiring workers, selecting and packing products, and so on. There will be very little overhead costs for your business. You can even run it from a home office! You only need a laptop and you’re good to go! Of course, it is not really as simple as that but that laptop is actually the only thing that you might need.
Also, you are not having any money stuck inside products that you might never sell. The only time you buy a product is when the customer specifically asks for it.
So far, everything looks great! So, why exactly is this not something everyone does? Because there are some cons to it, as well.
Here are the main cons of dropshipping:
- It is complicated!
- Plenty of inventory issues
- Low-profit margins
First of all, you need to be aware that this method of business can get extremely complicated. Simply imagine you have a customer buying several items from you in one go. Now imagine those items come from different suppliers, from the different parts of the world. Handling all the shipping rates, syncing the shipments, and so on can get overwhelming real fast.
You are also never in charge of the inventory so you can’t know what is available at all times. It is really hard to keep track of all suppliers in real-time, something that your customers will demand.
Finally, the simplicity to create an online shop creates a really low-profit margin, as everyone is doing it. You need to work hard, and long, to build enough of a reputation so you are able to increase it.