Drop shipping refers to a retail fulfillment method where a store does not keep the product in the stock, instead after selling a product, it purchases the item and makes it ships it directly to the customer Drop shipping like any other technique has its benefits and shortcoming, but mostly the benefits are many. 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 This advantage is necessary because there are no losses occurring from lack of sales of goods hence maximum profits are reachable. Expiry dates of products may be reached or could be destroyed when the stock stays longer on the shelves, dropping becomes the answer to these problems.
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 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. The other thing is that the retailer does not require a location or a physical stall which saves on the cost of rent or building and maintenance the facility. The drop shipping technique leads to low prices tagged to the processes altogether, making the product cost low also hence this is a benefit to the customer.
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. It is a good thing that technological innovations have brought, because more customers can be reached within a period of time hence sales are higher causing the manufactures to charge a lower fee on the products. 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.