Lower Capital Requirement: With drop shipping, you don’t need to invest thousands of dollars in inventory. Instead, you only purchase a product when you have an existing order to fulfill.
Wider Product Selection:
When you don`t have to pre-purchase all the items you sell, you can offer a significantly larger number of products to your customers.
More time and resources to scale your business:
In traditional retail business models, if you want more profits you have do more work and invest that much more of your resource pool.
With dropshipping all you have to do is send more orders to your dropship supplier and then let them handle everything else while you earn the profit and are left with more time to develop your business plans and scale!
Without thousands invested in inventory, the risk involved with starting an online store is dramatically reduced.
If things don’t work out, you aren’t stuck with thousands in inventory you have to sell at a loss.
CONS OF DROPSHIPPING
Because very little capital is required to start a drop shipping business, that low barrier to entry means a lot of competition, The attractiveness and popularity of the dropshipping business model means more and more retailers in every segment and niche.
Managing the inventory :
keeping track of the stock of the supplier is nearly impossible.
Experienced ecommerce owners know that market fluctuations aren’t always predictable.
No control of the supply-chain:
Using drop shipping means you will never see the products you are selling and you have no idea about the suppliers you are dealing with.
On top of that, it`s impossible to have fully control of the product quality and shipping time.
When you use more than one supplier for your drop shipping business, your customers may receive over 2 packages when they place one order from your store.
if the supplier messes something up, it’s still the retailer’s fault as the brand is the face of the retail process.