| The things you must know about apparel dropshipping
Basically, dropshipping is an order fulfillment method that removes the middle man from the supply chain. With a dropshipping store sellers can sell products without any actually stocking. The us dropshippers or a wholesaler who then ship the goods directly to your customer.
A. Who is It For?
Dropshipping is currently the cheapest option to get started on ecommerce business. It is free-risk and low cost. Thus dropshipping is more suitable for people who would prefer to keep startup costs as low as possible and that would not want to hold and manage inventory.
B. The Pros
Low Startup Costs: Because you are never carrying inventory, costs will generally be reduced. Actually the startup costs are the most substantial cost for a ecommerce business.
Low Risk: Since you don’t actually purchase inventory hence you will not take the risk of having items you can’t sell.
Simple sales: Dropshippers will deal with picking, packing and shipping your product for you. It not only provide convenience and efficiency, but also allows you to manage your business from anywhere in the world.
C. The Cons
High Competition: Because dropshipping has such low barriers to start, you can bet that a lot of people are doing it.
Low Margins: This makes it extremely difficult to compete advertising space and means you’ll have to rely more on building content, service etc. Low magins also means you have to decrease cost and increase sell volume
Inventory Syncing: As you rely on suppliers’ inventory, the occasion may arise where you place an order to the supplier, but the product is out of stock. At this time, you will know how important and helpful the inventory syncing function.
D. Margins
Your profit comes from the difference between your retail price and the wholesale price, so you must choose a suitable dropshipper with lower fees and a quality service.
E. Risks
Dropshipping is pretty low risk because you never buy inventory nor do you have to worry about shipping. However, risk comes form the margins control and high competition. Slim margins means you have to find a perfect apparel product and good wholesale apparel china wholesale suppliers to make good profit.
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