Dropshipping is an e-commerce form of business whereby the retailer conducts the business online. The online retailer does not handle any inventory. Once an order has been made, it is directed to the supplier for order fulfillment. The supplier will process the order and then ships the product to the client. The online retailer will only pay the supplier after the client buys it. This form of business has become popular among entrepreneurs who want to reduce overhead costs.

Hereby are some of the benefits of dropshipping integration.

1.      Reduced operating costs

There are many costs associated with the supply chain process. For instance, the warehousing cost, labor cost, inventory management cost, holding cost, and even the dead stock cost. It is the supplier’s responsibility to handle returns and any inbound shipments. The costs of keeping and managing the stock levels are shifted to the dropshipping suppliers. The retailer will not incur these costs as they will not handle the products physically. This becomes the responsibility of the supplier.

2.      Increased flexibility

There is a lot of flexibility in this form of business. This is because you can conduct business anywhere and anytime. All you require is a strong internet connection and an electronic gadget such as a computer. Having a communication network with the suppliers and the customers eliminated the need to have a physical building to operate from. This in turn makes it easier to expand the business. You will be only required to increase the variety of products and the number of suppliers.

3.      Lower inventory management

Inventory management cost is greatly reduced as the retailer is not involved in the handling of the inventory. The retailer does not keep track of the levels of the inventory as the suppliers store the products. It is the supplier’s responsibility to manage the warehouse and track the inventory since they are involved in the delivery of the products.

4.      Diversity

This form of business allows the retailer to sell many product varieties. This is because the retailer has access to a wider market and does not incur any expenses. The retailer will only be required to list the products on the website. This makes it possible for potential clients to know the products you are selling in your online store.

5.      Less investment

The dropshipping business requires less investment to start. The online retailer in most instances is required to have an electronic gadget and a strong internet connection to operate the business. The retailer should establish a website from which he can sell the products. Creating a website requires small capital. The retailer will not have to establish a building since the business will be conducted virtually. The retailer will not have to rent a warehouse to store the products since the suppliers are the ones who store the products. This relieves the retailer of the burden of tracking and managing inventory.

Wrapping up

In conclusion, there are many benefits of dropshipping integration. The above article has illustrated some of the businesses a retailer can enjoy. Some of these benefits include flexibility, diversity, reduced operating costs, and minimal risks.