E-commerce has picked up great momentum and has cruised itself into being one of the top business sectors today. As the technology keeps advancing, it is safe to assume e-commerce sector shall soon become the highest revenue grossing sector. There are many sub-categories in this internet-based sector. To name a few, multi-vendor marketplaces, e-commerce shopping carts, single vendor marketplaces etc., have become trendy. One of the little known but highly profitable subsections is Drop Shipping.
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What’s Top Drop Shipping Companies?
To keep it simple for the newcomers in the business, drop shipping is a form of the retail business model in which the seller does not handle or inventory the product. When a consumer places an order for a product, the drop shipping company places / accepts the order for the item from a third-party vendor and the product is delivered directly to the buyer.
This business plan may feel a bit odd, but it still has been estimated to contribute 23% of the total e-commerce revenue in 2017. Here is a list of reasons to consider drop-shipping with the top drop shipping companies:
Reason #1: Optimum Utilization of Resources
Let’s catch the big fish first! Even though an e-commerce company is represented by the nifty and creatively designed website, there is a lot that goes on behind the curtains. Millions are spent to place bulk orders from companies, most of which are foreign. Millions more are spent on warehouses, their maintenance, product shipping and the numerous employees required to manage such a large enterprise.
As someone who is just starting an e-commerce business, managing the intricacies associated with finances isn’t feasible. This is why a business model like dropshipping, where you have to purchase for your customer, is a very profitable idea. Today, there also exist companies that only carry out the task of warehousing products. The list of top drop shipping companies includes names such as Doba, Dropship Direct, and Oberlo.
Reason #2: Unique Modus Operandi of Top Drop Shipping companies
The general methodology of any e-commerce company is fairly simple. Customer logs in and places an order. The company ships the product to the customer. This essentially entails warehouse maintenance and logistics continuation. In the drop shipping model, the two are separated and mutually exclusive. For all intents and purposes, you can handle the website and brand management of your company, the warehousing can be outsourced to a drop shipping company.
Some of the top drop chipping companies such as Doba let you open an account with them. When an order is placed, you can inform the drop shipping company, and they will take care of the delivery. Instead of informing them, everything can be automated with a software.
Reason #3: Business for Beginners
Though drop shipping is a business model for all, it is more of a stepping stone for beginners. It is for the people who are trying to expand their business using the e-commerce platform. It is a brave move and a risky one, especially financially. By reducing the need for warehousing and inventory, not only does the financial state remain stable but also the need of management goes down significantly. It also reduces the risk of buying a product in bulk, which may turn out to be a bad investment.
Reason #4: Reliable Top Drop Shipping Companies software
To automate your drop shipping enterprise, there are much drop shipping software available today. They can get your business going. There is much drop shipping software to choose from, but the topmost and reputed software in the market are Inventory Source, Hublogix, Dropship Commerce and Spark Shipping.
Here is how it works: You sign up your business with the software for a specific duration such as a month or a year. It’s all about choosing the right plan. Once you are done with the process of registration, you shall have all of their inventory to choose from to display on your platform. You also get to choose from a multitude of vendors to take care of packaging and shipping. The software’s are also automated and will carry out a menial task like upgrading product information directly on your website thereby reducing your workload.
Even though the software is known to be expensive and keep prompting webmasters for extra payment every time something new has to be added, they are a good investment as they help you build a foundation for your business.
Reason #5: Flexible Office Location
Running your business from a flexible location is easier said than done. If you own a warehouse in Malibu, it just doesn’t make sense to have your office located in Los Angeles. Right from delivery to packaging, drop shopping companies take excellent care of logistics. You can carry out your business without any hassle as long as you have good communication setup.
Drop shipping came out as a business plan in the 2010s when people were well and comfortable with e-commerce shopping. Though it witnessed a few setbacks, the recent rise in eCommerce start-ups and people looking to expand their businesses has made people look back at drop shipping as a viable e-commerce platform. So what are you waiting for? Partner with a drop shipper and rake in the moolah. Cheers!
I am a professional blogger, guest writer, Influencer & an eCommerce expert. Currently associated with ShopyGen as a content marketing strategist. I also report on the latest happenings and trends associated with the eCommerce industry.