Drop shipping has become the most thriving business model of the present days. The reason why it has gain so much popularity is because it is location independent, no inventory management from the retailers end.
If you are unsure about what drop shipping is check this post. For the time being, the one line definition of drop shipping is that – the process of fulfillment of orders wherein the whole shipment business is being take care by the suppliers or wholesalers.
Everything comes both with advantages and the disadvantages at the same time. In this article we will discuss the ‘cons of drop shipping business model
Order processing becomes difficult
Most of the companies these days are connecting with two or three dropshipping suppliers for the delivery of the product and each one of them have different requirements for order processing, billing and the shipment process. This in turn makes things very much complicated for the retailer or the merchant. Also, there occurs many conversations between the supplier and the merchant, this makes the things very much complicated.
Shortage of stock
Sudden stock of shortages that occur during bulk order of the products is one of the most common problems that sellers have with dropshipping companies. If there occurs a sudden need of product from the customers end, the drops hipper may have sell out, leaving the situation of no products or in-house stock.
Increase in the cost of goods sold
The drop shipping companies usually offer more added cost than the original cost of the product and gets better pricing, marketing incentives, additional bonuses, and many other advantages.
Issues with customer interaction
As there is no interaction between the customer and the merchant, retailers are completely indifferent from the access to the customer queries and reviews. The no customer interaction can create serious performance issues for the merchant.
Impossible to scale
Sometimes the dropshipping companies are not much capable of keeping the large number of products in their stores and in this case if a vendor sends the request of 100+ orders of a single or multiple products, the seller will not be able to fulfill the requirement, thus making dropshipping model a major failure.
Loss of quality control
The whole retail fulfillment process is done by the seller which means the reseller is not even close when it comes to the inspection of the product quality. When it comes to checking of the products quality before its delivery, retailer cannot do that. This may damage their online reputation, if low quality product gets delivered.
Vast amount of competition in the market
With the wide competition scale because of the big brands are thriving in the drop shipping market, the new entrepreneurs or the business owners will find it difficult to beat such brand names in terms of market presence , prices etc. It will require an extra effort to make stand in the market.
After reading the above mentioned reasons do you really think that the dropshipping will never work, or just leave the thought of trying reselling?
Certainly not. If you have a world class planning and execution model for your business. Step ahead, break the stereotypes as dropshipping can be a good tool in your business range. Seasonsway.com is a rendezvous when it comes to the top dropshipping companies in India. Proceed with the right business approach and here is Seasonsway offering you multitude of benefits through drop shipping ranging from wide range of brands ranges in men , women items , kids wear , electronic , kitchenware’s and many more with reduced shipping costs, flexible reselling pricing plans, timely delivery of the branded products at customers doorsteps and above all 24*7 customer support.
Call us Now – +91-98703-24320(40 lines) or send an Email at – firstname.lastname@example.org