The Pros And Cons Of Drop Shipping

What is drop shipping?

Drop shipping is when the product distributor takes care of all the shipping for you. Rather than ordering stock in bulk, the stock remains with the distributor. Then, when you make a sale, you send an email to the distributor and they pack up the item and send it straight to the customer with your company label on the box.

Drop shipping is a very popular option with sellers because it takes a lot of the grunt work out of selling on eBay. However, there are some major downsides to drop shipping – especially for new sellers.

Heres a list of the pros and cons of drop shipping so that you can make the right decision for your business.

Drop shipping Pros

1. No storage room required

You dont have to fill up your living room with stock and packing materials! This is particularly useful if you are selling large items such as kit-sets, furniture, sporting goods, and so on.

2. No shipping costs getting stock delivered from the distributor

Drop shipping means you dont have to pay a carrier to bring stock from the distributor to your own storage area, which can mean big savings in the long term.

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