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The benefits of consignment

For aspiring entrepreneurs, Dropshipping is a great business model because it is easy to access. With direct shipping, you can quickly test different business ideas with limited shortcomings, which allows you to learn a lot about how to choose and sell on-demand products. There are other reasons why direct delivery is so popular.

1. Less funds required

Perhaps the biggest advantage of direct selling is that you can open an e-commerce store without having to invest thousands of dollars in inventory upfront. Traditionally, retailers must spend a lot of capital to buy inventory.

With the direct shipping model, you don’t need to buy the product unless you have already made a sale and have already received payment from the customer. You can start purchasing products and start a successful direct sales business with very little money without a large amount of up-front inventory investment. Moreover, since you do not promise to sell through any inventory purchased in advance like traditional retail, there is less risk of opening an outlet store.

2. Easy to use

When you don’t have to deal with physical products, it’s much easier to run an e-commerce business. With direct shipping, you don’t have to worry about:

3. Low overhead

Since you don’t have to deal with purchasing inventory or managing warehouses, your overhead costs are very low. In fact, many successful direct sales stores are home-based businesses, requiring only a laptop computer and some recurring operating expenses. As you grow, these costs may increase, but they are still relatively low compared to traditional physical businesses.

5. A wide range of products to choose from

Since you don’t have to purchase the products for sale in advance, you can provide potential customers with a range of popular products. If the supplier stocks items, you can list the items for sale in your online store without paying extra.

6. Easier to test

Direct sales are a useful way for business owners who open new stores and want to test their customers’ appetite for other product categories, such as accessories or new product lines. Similarly, the main benefit of direct shipping is the ability to list and sell products before committing to purchase large amounts of inventory.

7. Easier to expand

For traditional retail business, if you receive three times the number of orders, you usually need to do three times the work. By using direct shipping suppliers, most of the work of processing additional orders will be borne by the supplier, allowing you to expand with less growth troubles and less incremental work.

Sales growth will always bring extra work, especially work related to customer support, but compared to traditional e-commerce businesses, businesses that utilize direct consignment scale are particularly good.

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