Drop shipping is a supply chain management in which retailers do not keep goods in the stock but takes the order details from the customers, sends them to the wholesalers or the manufactures then directly sends them to the customer. 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;
To begin with, in drop shipping there is no dead stock because the business only sells the ordered products. The importance of not having dead stock is that there are reduced losses that come from dead overstayed goods on the shelves. Therefore, more profits are made. Stocks may expire, become destroyed or out of fashion but luckily drop shipment gives the best solutions.
Secondly, the customer can explain to the business on whatever he or she needs and afterward get the exact specifications. For this reason, the goods that the consumer gets are from his or her preferred costs and quality hence satisfaction is felt. Drop shipping is necessary for full board sales because all of the produced goods are sold without any remainders. Therefore, exponential growth is witnessed when this method is used. 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. Another instance is that the drop shipping business place is not mandatory therefore there is no cost of the housing. 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. It is possible to go to online applications, order an item for a particular period, then get it all because technology is usable. Technology has pooled together customers and therefore made a high volume of sales which ensures that their products’ costs are standardized. There are no time limitations on online platforms enabled by drop shipping technique, so the buying and selling of goods is done throughout the day making it available.