5 Truths About Dropshipping You Must Know About

4 min readJan 11, 2021

Dropshipping has been touted as a foolproof way to secure a good and flourishing business. While easier said than done, this business model does have perks that the e commerce world can’t deny.

Dropshipping is outsourcing a product as well as its storage and shipment from third party suppliers. Improved and cheap products are guaranteed. Before you start your own dropshipping business though, it is good to look more closely how it benefits you.

Dropshipping Reduces Risks

No matter what you have heard about dropshipping being a get rich quick scheme, you can’t deny that dropshipping is an ideal method for startup businesses or any business that has yet not established a prominent e-commerce presence yet, to start.

Dropshipping reduces the risk of a large overhead since the initial investment is really low (it can be as low as $100). So in case the product fails to pick up heat, you can always calibrate your approach and start from scratch.

The reason dropshipping is a good start for small businesses is that lower risk means business can take more liberty and test and trial products. Low overhead costs means tanking a product doesn’t lead to major losses.

Dropshipping Reduces Product Prices

Another advantage of a dropshipping business is that more and more businesses or vendors can easily sell the same product. This increases competition and cost of product falls which is amazing news for customers.

In dropshipping, multiple vendors can purchase stock from the same supplier and while this may mean less profits for the vendors as the lower prices cut into their overall profits, customers not only get a variety of vendors to choose from, they get their favourite products at incredibly cheap rates.

More vendors leads to more competition which ultimately leads to better customer services. If you seriously want to establish a loyal customer base-something vital for a successful dropshipping business, you need to up your game in customer support to rival that of your competitor.

Dropshipping Reduces Warehouse Costs

Perhaps by now you are thinking dropshipping seems like an amazing idea from the point of view of a customer but it is really cost effective for the vendor too.

Let’s be honest, no new business has the capital or resources to organize storage, shipment and logistics of the supply chain.

Through dropshipping, a business can not only outsource the product, it can effectively reduce overall storage of the product as well as shipping it across the globe.

How? Well, since your supplier is selling the product to various vendors and cutting marketing costs, it focuses on better warehouses and shipment support.

While the vendor focuses on swift logistics of an online purchase, the costs of storage and supply are reduced since both the supplier and the vendor have eased their load and specialized in their departments through dropshipping, thereby not overloading a single entity and reducing the standard and increasing the cost of logistics.

Dropshipping Increases Variety

As with any other business, reduced load, more specialization and lower risks lead to innovation. Since a business is not bogged down by storage and shipment issues, it can now host a greater variety of products on its website or portal.

Dropshipping allows the vendor breathing room to establish its customer base while increasing the product range.

Another way dropshipping allows established businesses to seek out and sell new products is through cheap market research. Because of this method, a business can put a product to trial in a local area to rest out the customer interest in that product.

Not only would the business not have to risk establishing a supply chain for a yet untested product, it would also have less loss if the said product fails to perform well.

This is why most businesses prefer dropshipping as a method for market research on new products even if they have a huge supply chain of their own on their other products.

Now a customer can get a greater variety of products from the same vendor. If the customer tries a vendor, there is no way a product won’t sell well.

That is why dropshipping is recommended for already big names in e-commerce rather than start ups who would get trampled by big giants.

Dropshipping Provides Flexibility

Last but not the least, dropshipping is an amazing business model since it allows the vendors more room to maneuver around and test different suppliers. They say a vendor is as good as its supplier and nothing is more true than that.

With dropshipping, a vendor is not stuck with one product and bogged down by its supply chain management issues.

A vendor can look around to try out different suppliers who provide quality products at affordable rates with reliable shipping. This way, a vendor has options to either expand or restrict purchase of a particular product or even buy it seasonally.

So, amazed by how dropshipping benefits both the customer and the seller? Thinking of starting your own business? We at wholesaleblades.com hope we convinced you about how dropshipping is a win win for all. Goodluck!