Trading Advice

Should You Use Dropshipping Companies?

When it comes to reselling stock you have a few options. You can buy products from wholesalers and sell them on to customers or you can use dropshipping companies. If you’re new to reselling or are not sure what dropshipping involves, take a look at our latest advice article.

What is Dropshipping?

Dropshipping is quite different to buying stock from wholesalers. If you buy stock from wholesale suppliers you will take delivery of the stock personally and store it before selling it on to a customer. But if you buy stock from a dropshipper, you will advertise the product for sale and the dropshipper will send it directly to the customer. You will then take payment from the customer and pay the dropshipper for their services, pocketing the profit.

Should You Use a Dropshipper?

Here are a number of reasons why using a dropshipping company could be right for you:

• You don’t need any space to store stock. Space for storing stock can be a big stumbling block for many resellers but if you use a dropshipping company you don’t need it. Once a sale is secured the dropshipper will send stock directly to the customer. This means you don’t have to pay for a storage facility.

• You save on delivery costs. Using a dropshipper will mean that you don’t have to post stock to your customers which will save you money on shipping costs.

• You aren’t left with a large amount of stock you can’t sell. Stock control can cause some financial issues but you can avoid this by using a dropshipping company. Dropshippers will store stock to send out to customers so you will avoid any unwanted storage costs.

There are downsides to dropshipping too so before you decide what route is best for you ensure you do your research.

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