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Advantages of Drop Shipping Business

Drop shipping is a buzzword thrown around loosely and often incorrectly. Knowing that, we thought it would be useful to discuss the pros and cons of drop shipping as a fulfillment method and share some information that ecommerce merchants need in order to make educated business decisions.

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Increase your cash flow

Since you don't stock the product, you don't pay for it until it's sold (after you've been paid for it)

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Low starting cost

You can start selling without a lot of early investment because you don't have to buy wholesale or cover the cost of manufacturing your own products..

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Increase lifetime value of customers

With the ability to add new and expanded product selections consistently, you can keep your existing customers engaged and returning to see what new items you've acquired

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Enable expansion into new markets

Sometimes getting product across international borders can be costly and challenging, but if you partner with strategically located suppliers, you can often access the same or similar product offerings and ship them quickly. This allows you to test the market and validate if a given product is worth importing.

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Reduce costs

Every time you need to touch a product in the supply chain, there is a cost associated. Ocean freight services, Port Operations, LTL and FTL Services, and warehouse employees all get added into the Cost of Goods Sold. Often, you will find that a percentage of your product offering would net a business higher profit margins if it were drop shipped.

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Virtually unlimited inventory

One of the main reasons the drop ship industry exists is to help retailers and suppliers combat inventory distortion: the 800 billion dollar problem of over-stock clearances and out-of-stock shelves. By tapping into inventory further up the supply chain, theoretically you can gain access to virtually unlimited inventory.

Starting a dropshipping store
has never been this easy

We does the hard work for you so you can start selling and making money faster
  • Find the best products to sell - Choose from thousands of trending products with high profit margins. Our products are hand-picked by dropshipping experts who have done the research for you
  • Populate your store in minutes - Save time with one-click import. Add best-selling products to your store and start selling faster than ever before
  • Trusted dropship suppliers - All suppliers are vetted and verified by SaleHoo so you can click with confidence. You don't even have to contact a supplier to start selling.
  • All you need on one screen - Get a detailed view of every product. Easily see product cost, sales volume, supplier rating, shipping information, and high-quality images.
  • Maximize your profits - Our products are selected to have high profit margins (usually at least 3x). Quickly find the cheapest items using the price range slider.
  • Automate for success - Give yourself a higher chance of success with a tool that does it for you. Proven products, reliable suppliers, and easy integration with Shopify.
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DropShipping VS Order Fulfillment

There are many options to get your products into the hands of your buyers, and two options -- "dropshipping" and "order fulfillment" -- can be confusing to many suppliers who are trying to make their products easy to sell. Simply put, these two methods are in fact two sides of the same coin.

Order Fullfilment

You keep your inventory in your own warehouse, storage space, or even your own home, and then ship it to your customers yourself. You keeps boxes of hats in his attic, sells them on eBay, and mails them to buyers. You using merchant fulfillment.

  • Requires larger initial investment. You will have to buy wholesale inventory upfront as well as create an infrastructure for storage and shipping.
  • Not scalable. Unless you want to invest in a warehouse of your own, merchant fulfillment is not a scalable model. As orders grow, it will become increasingly difficult to manage merchant fulfillment.
  • Calls for a separate area of expertise. You have to be good at selling, promotion, supply chain management, inventory management, shipping solutions, and customer service.

Fullfillment Order


The product is created and stored by its manufacturer. You find buyers, pay wholesale for the product, forward the sales to the manufacturer, and keep the profits while the manufacturer fulfills the order. You has never touched a box of hats, but lists the hats on his website and/or other marketplaces for the manufacturer who handles everything else. You using a dropshipping model.

  • Low initial investment. Listing fees for marketplaces and hosting fees for your website are basically the only initial costs you'll pay to potentially start selling dozens or even hundreds of items.
  • Fully hands-off. Making dropshipping completely automated. All you do is keep your site updated and collect the profit
  • Product diversity. Anything can be dropshipped. Since volume is no problem, you can sell a diverse catalog of products.

Dropship Order


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