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5 great ways drop shipping can help your ecommerce business

Written by Jeff Allen on March 30, 2015 in How to Sell Products Online

Drop shipping is often thought of as a beginner's means of entering the ecommerce world.  It's an easy way for newcomers to start an online business. For this reason, many larger and more established businesses don't consider dropshipping as been a credible tool.

But drop shipping is more than just for new and developing businesses. Even established online stores can (and do) benefit from the versatility of drop shipping. From product offering to testing out suppliers, drop shipping can be used to make a good business even better. Before writing it off as a tool for ecommerce noobs, consider these ways that drop shipping can be instramental in the growth of any online business:

Increase Product Offering

Increase Product Range

Adding new items to your store can be burdonsome, and issues involving inventory and space are often more trouble than they're worth. It can cost a decent amount of money to stock up on a new item, and then there’s the matter of whether or not you’ll even have space for it. For some companies, this is a great opportunity to use drop shipping.

By encorporating drop shipping, you can add virtually any item to your online store without having to consider inventory costs. Everything is shipped by the supplier, meaning you won't actually posses the inventory. Consequently, this means that you won’t be using up any of your warehouse space, either. Drop shipping can be utilized as a smart way to build your product range without compromising space or buying up inventory.

Manage Longtail

Many established businesses are aware of the logistics involved with managing long tail inventory. A business may have a low-selling item that's using valuable warehouse space, but enough people are buying it to remain profitable. Other businesses are ready to switch product offering, but don’t want to completely cut off customers from products that are still selling.  Failure to handle long tail inventory in an efficient way could result in a loss of time, protits, and customers

Whatever issues may arise with managing long tail inventory, drop shipping can offer an effective remedy. Without having to buy and stock up on inventory, the options for how a business handles long tail becomes more manageable. Drop shipping allows a business to tackle adding more/tapering off old inventory without causing any drastic changes to your business.

Test Products

Test New Products

Even for well-established ecommerce businesses, testing out a new product can be risky. Researching an item can give you valuable insight into what customers like, but until you actually start selling a given product, you won’t know whether or not your product with your audience. A failed new product is a costly endeavor, and another reason why drop shipping should be considered as a valid business tool.

As was stated before, drop shipping doesn’t require you to stock up on inventory in order to sell a product. Working through a drop shipping marketplace, such as Doba, offers you access to millions of products that you can be listed on your website. Researching a new product now becomes, “I think this could be a hot seller. Let’s check it out.” If it doesn't end up hitting expectations, you’re only out the time it takes to list a new product.

Vet Suppliers

Along the same lines as testing products comes testing suppliers. You may have found the perfect product, but your supplier can fall short of being equally perfect. Spending time and money on finding the right supplier is a luxury many businesses can’t often afford.

By implementing a drop shipping strategy to your business model, you can test multiple suppliers at the same time. This allows you to list the same product from various sources and from there see which suppliers are going to be the most efficient for your business.

Increasing Brand Footprint

Increase Your Brand Image

So maybe you’re not looking to test products and suppliers, and maybe you have a great handle on managing long tail. Drop shipping also helps in the brand awareness category. If your problem is simply one of getting your name out where people can see it, consider the benefits that drop shipping can bring.

An increased product listing improves your SEO, and having hard-to-find products means customers looking for those products have a higher chance of finding your business first. Offering this wide variety of products increases your chances of having repeat and loyal customers. People like going to one place for all their shopping.

Drop Shipping: Good for Everyone

Regardless of what stage your online store is at, drop shipping can offer a great way to expand, build, and otherwise better your business. Don't miss out on all the unique ways drop shipping can help as you continue to grow within the ecommerce world.

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