With the state of the current economy many new and small businesses are strapped for cash and start up capital. Opening a bricks and mortar type business often require significant capital to purchase inventory.
Existing businesses must finance the carrying costs of their current inventory. With the concept of Dropshipping businesses especially online business do not need to stock inventory. Products are advertised online as if they are in stock however there is no stock at all. It is held by the dropshipping company.
When the purchase is made the small online business places the order with the dropshipping company who in turn ships it to the customer often with the return address and/or logo of the small online business on the package.
This virtually creates the perception of a storefront with stocked products that are shipped to the customer upon ordering.
For more on this topic check How Drop Shipping Could be the Solution for New and Small Businesses from DropShipping:
Drop shipping is just one solution to this problem. Employing the help of drop shipping companies to stock a new or existing website has many benefits, especially for anyone starting out in an unfamiliar retail sector. It also frees up valuable time to …
![]()
Technorati




November 12, 2011
Business Systems, Dropshipping, Online Business