Drop shipping can be referred to an agreement between the business and the manufacturer of a good that the business wishes to sell, to ship the products directly to the customers. Drop shipping like any other supply chain management technique has its pros and cons. However, the pros outweigh the cons. Drop shipping makes work easier for both whole sellers and retailers for much work is removed in between in this technique. The following are some of the advantages of drop shipping;
Firstly, unlike the normal retailing system, drop shipping has no leftover stock because it the sales made are tailor-made products The need of no unsold stocks is low losses occurring from this goods hence maximum gains are made. Stocks may expire, become destroyed or out of fashion but luckily drop shipment gives the best solutions.
The other importance of drop shipping is that the customer gets whatever he or she wants to buy just ordering. Tailor making goods for a customer enables them to choose whatever standard of products he or she wants and also the fee charged. Drop shipment ensures that the only the ordered products are produced hence sales made are a hundred percent which leads to the growth of the business. Drop shipping method is a benefit to the producers because they first look at what they have been requested to produce which helps them to save on cost, labor, and resources, giving them maximum results.
Drop shipping has the advantage of low cost of the procedure of getting the product from the manufacturer to the customer. This is evident because there is no, for example, multiple transportations because the retailer does not directly get in touch with the goods. The retailer is not always required to have the shop on a specific locality hence there is no building or rental fee. Due to the reduced overall cost, the item becomes affordable to the consumer.
Finally, Drop shipping techniques gives the go-ahead on the use of technological knowledge such as online applications. There is always a possibility of requesting for a needed product online and afterward getting the same product courtesy of technological innovation. Technology has pooled together customers and therefore made a high volume of sales which ensures that their products’ costs are standardized. The online platforms made possible by drop shipment are always available in the day and night hence very reliable compared to the shops that close at certain times of the day.