Previously we talked about the Dropshipping and its operation. Basically it is about selling through a third party; However, what are the advantages and disadvantages of Dropshipping? Is it convenient for your Ecommerce to adopt this system?
How does dropshipping work?
In Dropshipping, company A, which carries out the current inventory, offers Dropshipping; then company B, which is, for example, an electronics retailer, wants to sell company A's products. The customer then orders the items through company B, which in turn sends the order to company A, and company A Ultima is the one in charge of sending the products directly to customers. Although it seems somewhat confusing, it is actually a fairly straightforward process.
Advantages of Dropshipping
With Dropshipping, you can start a online business without investing so much money since there is no need to pay the start-up cost. The company does not have to stock products and never runs out of inventory parts.
Disadvantages of Dropshipping
As regards the Disadvantages of Dropshipping, the first thing to note is that retailers have much less physical merchandise. As a result, customers have no way of physically seeing items before purchasing. In addition, if the customer is not satisfied with the product, the complaints are for the company from which the product was purchased and not for the company that supplied it.
Along with the above, it must also be borne in mind that if the shipment of the product is delayed or there is a problem with the shipment, the company that sold the product will be responsible for it. It should also be mentioned that competition is very important, there are many who use this system, which means that there will be a large number of sites that offer the same products and sometimes it will not be possible to compete with their prices.