Should I Become a Dropshipper?
So, you get what dropshipping is all about, but why is it important?
Why should online stores, dropshippers, or even your end consumers care?
Everything is going online!
Retail e-commerce itself is a $237 billion dollar market in the U.S. and is growing year-over-year at close to 17%.
And that’s just the US!
Looking globally, there are over 8 million online stores, amongst which 20-30% use dropshipping as their primary method of order fulfillment!
Further, it’s about time the fashion and retail industry saw some innovation to make life easier!
A study by the National Retail Federation claimed that brick-and-mortar retailers who hold physical inventory only carry an average of 13% of any brand’s product line.
By virtualizing their inventory and offering dropshipping for retailers, suppliers and brands eliminate the constraints of physical inventory on retailers, allowing them to offer the complete product line.
This makes the online store-dropshipping supplier relationship even more intimate!
And online stores are increasingly able to trust dropshipping suppliers with the responsibility to manage and fulfill orders due to improved manufacturing technology.
Dropshippers are working with smaller batch facilities that allow lead times to be reduced, hence shortening the time period between when products are designed, sourced, and manufactured, to when they are distributed to retailers and more importantly, end consumers.
It is easier than ever for dropshippers to open an online store.
Whether through shopping cart technologies such as Shopify, Wix, and BigCommerce, or through their own websites, dropshippers are establishing a larger online presence.
In response to consumer trends, brands are also exhibiting a stronger desire to diversify their inventory distribution – instead of merely offering products in brick-and-mortar locations, dropshippers are going online to distribute products no matter where the consumer is located.
And that brings us full circle to the consumer – arguably the most important element of this entire process!
End consumers, even like you and me, are increasingly seeking a unique, differentiated style. They want items that are hard to find locally and demand personalization and relevancy in everything they do!
As dropshippers become better in understanding which consumer segment they serve, they will form a “brand image” that enables consumers to feel the personalization element more. Dropshipping makes sourcing such niche brands much easier!
But perhaps the biggest macro trend that supports dropshipping and online retail is that almost 41% of global internet users purchased items online in 2013.
Undoubtedly, retail e-commerce has exploded both in the US and worldwide.
And staying ahead of this momentous growth means looking ahead to fresh new ideas such as dropshipping! Indeed, dropshipping will encourage brands and retailers alike to establish themselves online, work together, and better serve those eager, excited shoppers just waiting to make their next purchase!