I’m a senior in college getting my business degree and have read a lot about dropshipping online. It seems like a great solution for starting a business or expanding an existing company’s sales, but I don’t quite understand the particulars of how dropshipping works. What’s the easiest way to explain how dropshipping works and what its benefits are?
Dropshipping is having a major effect on the world of business as more and more companies are moving online. If you’ve ever considered expanding your brick and mortar business online, or are interested in starting a new entrepreneurial venture, you must understand the benefits of dropshipping. Dropshipping is completely revolutionizing the way that vendors fulfill customer orders and is a valuable tool for scaling your business while keeping up with consumer demand. The result is a hybrid shipping and distribution solution that can help your customer cut costs while still delivering excellent service. If you’re serious about doing business online, dropshipping can play a powerful role in your company’s e-commerce strategy.
Dropshipping suppliers effectively eliminate the middle man between you and your customers. Rather than having to focus your business’ efforts on shopping for, buying, and storing your merchandise, you can spend your time marketing your products to customers and bolstering your customer service. As a retailer, being able to focus more on what you want to sell and how you want to sell it, rather than how you go about fulfilling a customer’s order is a great way to start small and scale your sales up. Take, for example, the sale of a pair of shoes. In a traditional retail model, you would buy a bunch of different sizes of shoes in bulk, store them in a warehouse or at your brick and mortar business, and wait for a customer to buy them. In a dropshipping model, you never have to worry about whether or not you’ve bought too many of the right size or style. Instead, a customer places an order and pays you retail price. You keep your profit and spend the rest to pay the wholesale supplier who fulfills the rest of the order for you. This lets you make a sale without ever having to worry about getting stuck with too many redundant or unpopular items in stock.
With dropshipping, you can even use analytics to determine which of your sizes, styles, or designs is the most popular so that you can better focus your efforts on marketing these products to your consumers. This can be a major boon for you as you start to develop a customer base and build a reputation with consumers. Leveraging this data can also help you use your most popular products in an ad campaign that you run on social media or display advertising platforms. The overall result is a much more effective way to make sales while eliminating costs associated with wasted overhead.
Modalyst dropshipping is just one of many dropshipping options available to you as a business owner. Two of their biggest integrations are with Wix.com and Shopify, both of which handle millions of online orders each year. This makes it simple for even the smallest businesses to get up and running with Modalyst. The user interface is very intuitive and allows you to search for and source a variety of products from suppliers around the world. This allows you to expand your inventory without ever having to manage it anywhere other than online. The result is a very convenient solution for distribution and shipping that allows you to spend more time developing and marketing your brand and less time in the weeds with the nitty-gritty details of how to package and mail the products you’re selling.