As a growing business, why wouldn’t you choose one of the easiest ways to broaden not just your online store’s product selection but the number of orders you receive as well?
The benefits of dropshipping are not just there for those who are new on the market. You can use this method to grab more customers’ attention with your existing business.
The popularity of online shopping seems to be growing in an unstoppable way as years go by. It still doesn’t mean we can slowly say goodbye to brick-and-mortar stores. Why so?
People enjoy ‘shopping’, not just ‘buying’. We can refer to the activity when people get products from the internet as ‘buying’, because their main goal is to get the products the easiest way.
However, while walking on the isles in a plaza, or among the racks of clothes in a huge corner store, we say that is “shopping”. It can be a hobby for people, and this way they run away from the world outside.
Probably both online and brick-and-mortar stores will stay with us in the long run. This is one of the very first reasons why you are still in time to open an online store. Just make sure you build a business strategy that makes you stand out from the crowd of other stores on the internet.
State of Dropshipping 2021
When you decide to run your store with the dropshipping trading model we hope you know you cannot manage your whole business for free. There is an upfront investment you have to take care of.
The costs will be of course lower than they would be when keeping physical inventory of the products you sell. However, you need to build an online store and it has many technical aspects not to mention the importance of marketing that can come along with huge expenses.
When talking about the benefits of dropshipping, we have to refer to market research and statistics that predict the growth rate of the dropshipping market.
According to Grand View Research, there will be a CAGR of 28.8% from 2019 to 2025 based on the global dropshipping market size value being at USD 102.2 billion in 2018.
It means you do not have to be afraid of dropshipping disappearing from the market from one day to another. It has a future. Maybe just the strategy will change on how to manage your dropshipping business in a profitable way.
Now let’s see the benefits of dropshipping for those who already have an online store and are looking for ways to broaden their business and product range.
Black Friday & Christmas Season
When talking about dropshipping this time of the year, we cannot do it without referring to Black Friday, Cyber Monday and the Christmas shopping season. It is definitely worth extending your product selection with seasonal goods you do not have a physical inventory of.
It is one of the biggest benefits of dropshipping. You don’t have to be afraid of not being able to sell all the products you keep stock of. BFCM is a shopping holiday you should definitely create campaigns for. Sales during Cyber Monday hit $10.8 billion in 2020, and on Black Friday and Thanksgiving Day online customers spend $14 billion.
13 Benefits of Dropshipping For Growing Stores
The list of the benefits of dropshipping covers many different aspects. Now we focus on those factors that show clear proof that you can boost your business with this model.
Without further ado, let’s get into it!
1. Constant Low Risk
One of the main benefits of dropshipping is that there is constant low risk when running an online store implementing this trading model to your strategy. With dropshipping you do not have to be afraid of inventory risk, wasting money, or having issues with logistics.
2. Easy to Broaden The Product Range
The second factor from the benefits of dropshipping is that you can broaden the product range of your online store in a few clicks. You don’t have to deal with physical inventory. With dropshipping platforms, you can easily find products and can automate product updates and order data synchronization.
3. More People Buy Online -> More Sales
People’s buying behavior has changed not only due to the pandemic’s effect on everyday life. Customers can get more products online, and they are less afraid of scams as a greater number of people have the ability on what factors to focus on to tell if a site is reliable. It all means your income will grow.
4. More Sources to Get Dropshipping Products From
The number of suppliers on the market who provide dropshipping services is growing. More manufacturers get to know about this trading model and they build it into their strategy to gain more income. Moreover, there are more platforms where they can show themself thus more potential retailers as you can find them. An example of this is Syncee Marketplace.
5. Don’t Have to Deal with Logistics
There are many issues you can avoid relating to logistics if you work with dropshipping. Your supplier will send the products directly to the customer, you don’t have to deal with it. If you work with 1-3 suppliers only with completely different selections, you can also avoid the possibility that a customer who orders 5 products will receive parcels at 5 different times.
6. Easy to Modify Product Selection
Is there a product that you have hardships to sell? Is there a product that is out of season already? If you sell it via dropshipping and do not have physical inventory, you can modify your store’s product range like a piece of cake anytime for free.
7. More Options in Online Payments For Customers
The next factor we mention from the benefits of dropshipping is that people can access more payment options, and it is more likely that everyone who decides to buy from your store will actually place the order as they can find the payment option they were looking for.
8. No Upfront Investment In Products, No Physical Inventory Needed
You can save money by not having a physical inventory of everything you offer in your online store. To grow your business quickly but effectively, dropshipping is something you should definitely consider. No bigger warehouse will be needed.
9. Reach More Potential Buyers
As you offer more products in your online store you can bring in more potential buyers. First of all, because more people will visit your site as, for example, on Google, you will appear in more search results. Secondly, if a person wants to buy a product from you, s/he can browse among more goods and potentially will place some extras in their cart. People can buy everything they need from one place.
10. More Focus On Store And Marketing
As you don’t have to deal with wrapping your products and placing them in boxes, being in contact with delivery services, you can spend that time on making your online store more jaw-dropping and your marketing strategies more effective.
11. Virtually Unlimited Inventory
Basically, there is no limit on how many products you can sell in your online store. Your stock limit only depends on the platforms and applications you use, and the money you want to spend on certain subscription packages. It is a significant element on the list of the benefits of dropshipping.
12. Automated Dropshipping Solutions Available
Years ago online stores were afraid of not being able to stay up-to-date with the product data they have. They had to spend time manually updating their changing product prices, and the stock number. However, now they can access automated solutions, and they don’t even have to necessarily deal with product data feed files of suppliers.
13. Sell Demanded Products
You can “test” products to see if they are something your target audience is actually interested in. You can modify your product selection anytime, so you can “play” with what you offer. Just don’t make drastic changes from one day to another, and also don’t make such modifications in bulk too often.
As you can see, by getting products via dropshipping as well, you can save time and money while growing your business in parallel.
Where To Find Products For Your Business Needs?
After talking about the benefits of dropshipping, it’s time to discuss what those sources are where you can find new products and potential supplier partners for your online store.
- One of these is quite basic but comes in handy all the time. Everyone's best friend: Google. Make searches on Google, and make sure you use specific keywords to find companies you are indeed interested in.
- Well, nowadays these events are probably not that widespread, but you can still find ones (especially if they held it online), you can find some new potential suppliers there too. What are these? Trade shows!
- Facebook groups are Forums that might seem a little old-fashioned, but they are not. They still have active members who truly offer value to the big audience. You just have to be able to tell which are “natural” content, and which are just self-promotions. Well, don’t always be afraid of self-promotion. It can happen that they actually are valuable services.
- Your supposed competitors and other similar stores to your business can also be sources of suppliers. Check their product selection, and if you see something that might be “niche” in your target market, consider partnering with the supplier.
- As mentioned in the list of the benefits of dropshipping, there are real B2B marketplaces on the market worth checking. You can’t just find high-profit and unique products there with fast shopping but can also find suppliers from all over the world with great shipping conditions. These platforms also usually offer solutions for product updates and order data sync.
Dropshipping Is Easy Today!
If you are an entrepreneur, you always have to be open to new business opportunities. Dropshipping is one of these. Using this model in your strategy almost costs you nothing if you already have an online store that sells. The only thing you have to pay for is a stable and reliable application that will have you covered in keeping the product data always up-to-date in your online store so you can avoid overselling.
Are you ready to start this journey now? Grow your business the easiest way! Enjoy the benefits of dropshipping today!
Barbara Racz is the Marketing Team Leader at Syncee which is a global B2B dropshipping platform. She is passionate about ecommerce novelties. Besides developing marketing strategies, she is also a devotee of dropshipping. She is committed to helping others succeed with their business.