Have you been dreaming of starting your own online CBD business? Or perhaps you have been dreaming of carrying a wider variety of CBD products at your already operating online CBD business? If you answered yes to either of those have you considered a CBD drop shipping company? Read on to find out why dropshipping could be the next big thing for your business.
What is Dropshipping?
Dropshipping is an awesome business model for beginners and veterans alike. This is especially true for aspiring entrepreneurs as it is so accessible to start up. Dropshipping is a retail fulfillment technique where the products a store is selling are not kept in stock at the store’s location. Instead, when an order is placed through the store it is then purchased through a third party that ships it directly to the customer. The end result is that the store does not have to handle the product directly. The major difference between a traditional retail model and a drop shipping model is the store does not have to stock or own any inventory. The store purchases what it needs as needed, leaving the rest up to the wholesaler or manufacturer of the products.
Benefits of Dropshipping
1: Less Upfront Capital
One of the biggest advantages of the drop-shipping model is the fact it is possible to launch an online retail shop without thousands of startup capital. In a traditional setting, a retailer will often have tons of money tied up in inventory and storage. However, with dropshipping, you do not have to buy the product until it is sold to your customer and you have been paid for it already. This makes it very easy to start up a dropshipping business or add one to your current lineup with very little money out of pocket. Additionally, since you are not committed to selling through already owned inventory there is also less risk involved in using the dropshipping method for new products
2: Easy to Start
Running your online business the way you desire is much easier when you do not have to handle a physical product. By utilizing dropshipping you do not have to focus on:
Ordering products and managing proper stock levels
Packing and shipping orders
Managing or renting a warehouse
Tracking inventory and keeping it in check
Handling returns and inbound shipments
Dropshipping allows you to focus 100% of your efforts on growing your business without any of the headaches often associated with a traditional retail shop.
3: Very Low Overhead
With the dropshipping model, your overhead expenses are quite low. Especially when considering that you do not have to deal with managing a warehouse or purchasing inventory. In fact, many stores that utilize the dropshipping model are often home-based, requiring very few recurring expenses and little more than a laptop with an internet connection. As your business grows these costs are likely to rise, but it is next to nothing when compared to a traditional brick and mortar location.
4: Location is Flexible
If you have an internet connection and a consistent way to communicate with your customers and your suppliers a drop-ship business can be run almost anywhere. As long as you have a reliable internet connection you can manage and run your business anywhere in the world. This is perfect for those with a lust to wander or those living in small accommodations such as a van or a tiny home.
5: Wide Selection of Products
With drop shipping, you do not have to worry about upfront costs to stock your products. This means that you can sell a wide selection of products offered by your supplier without incurring the risk. Find out what works best for you and your customers by offering everything you can at first. Once you find out what products do best for your business, you can then fine-tune the offering to offer discounts or specials on the most popular items.
