What Does Drop Ship Mean? The Impact of ‘Dropshipping’ on eCommerce

Throughout the years, the different styles of marketing and selling have evolved. From door to door sales to visiting retail stores and spending hours at the mall. The growth of selling products has shifted once again and is now making a change in eCommerce.

Online businesses have boomed over the past several years. However, the stress of holding an inventory, packaging, and shipping are now a thing of the past.

What is the new trend?

Dropshipping Explained

Instead of investing in a bunch of inventory, stocking it, packaging, and shipping it when an order comes in, dropshipping takes this out of the equation.

People are now selling products that are housed by big manufacturers or wholesale stores.

The number one reason why this is now a trend is because people won’t have to invest and tie up money in inventory. People will instead purchase products from the manufacturer or wholesaler when customers place the order.

Other Reasons to Drop Ship

While of course saving time and money is all the motivation needed for many to switch to drop shipping, there are other important benefits as well:

• It allows expansion in product offerings. Which means...
• Bigger inventory and varied options for customers.
• Frees up time to focus on marketing and other important aspects of an eCommerce business.
• Closes the gap between suppliers and eCommerce store owners.

With the old method of shipping,business owners might invest $15,000 in inventory they aren’t sure if they will sell.

With dropshipping, the profit margin might be lower but you don’t have to invest until a customer purchases a product. Not having to worry about purchasing a varied inventory, storing, shipping a package is the advantage that dropshipping is adding to eCommerce and online businesses around the world.