What is Dropshipping?
Dropshipping is a flexible business model that has seen a boom in Google inquiries over the last 5 years. This shipping and logistics model allows you to launch your business without having to purchase items or hold inventory of your products. You only need to find a supplier and a logistics partner and from there simply drive customers to your website, trading partners or marketplace site. Cleary, this business model can bring a lot of benefits for you as a business owner all while eliminating some of the most frustrating parts of owning an inventory-based business.
Benefits of Using a Drop Shipping Business Model
1. Saves upfront costs
Many business owners get started with this business model because of the cost-savings of not having to fund inventory levels. This business model allows you to set up shop without having to raise a lot of capital past putting up a website and buying a domain. NextGen3PL integrates with all major platforms like Shopify, Woo, Volusion, Magento, Big Commerce, and others. Without the need for purchasing inventory, you can rest assured all products will be available in your suppliers’ warehouses. You only need to pay your suppliers after your customers pay you!
2. No shipping expertise required
This is another reason why you may want to consider conducting business this way. Drop shipping doesn’t require you to have a lot of knowledge, expertise or resources in your industry or how to fulfill orders. All order preparation and shipping procedures will be handled by your supplier or fulfillment partner. You only need to learn how you can target your audience and how you can get them to press that ‘buy’ button. With this huge time saver, you are free to focus on building more and more sites like this one, win the buy button, and scaling your business.
3. Sell and test products with low risks
Drop shipping allows you to update inventory in your store quickly and easily. You don’t need to purchase the items first to only hope they sell. If you find out that any products are doing well on the market, you can start featuring these products without having to wait for more to arrive in your warehouse. Many entrepreneurs find this perk too enticing to pass up as there is much less risk of bringing obsolete inventory into your warehouse.
4. Offer a wider range of products
Having a wide variety of products in your store can help you attract new customers to come to your website. If your product comes in different sizes, shapes, or colors, these variations are always available in the suppliers’ warehouses. You only need to make these products available on your website and once they are purchased they are filled by an experienced pick and pack team.
Start your drop shipping business now
NextGen3PL is a world-class fulfillment company that can deliver your products to your loyal customers today. It will be a one-stop-shop for any of your fulfillment needs. We have a top-tier warehouse management system partner with Powerhouse WMS, available to be leveraged by your business. This system can be used to process tens of thousands of orders a day accurately and on-time.
Other popular services we provide at NextGen3PL include product analysis, freight services, sourcing, kitting, multi-channel fulfillment and distribution, time to customer analysis, and storage analysis.
NextGen3PL offers the best-in-class technology that can handle other aspects of your business too. Critical supply chain services such as a reporting system, lot controls, rate shopping, weight verification, expiration date, temp-controlled facilities, etc. can make or break your drop shipping business. When your customers buy from you, guarantee they get what they ordered in a timely fashion with NextGen3PL.