How to grow your business with zero outlay
As a retailer in the competitive eCommerce market, you’re almost certainly looking for ways to diversify and increase your income. Quarter four provides plenty of opportunities, but sometimes the biggest opportunities are by adding extra lines, or simply needing to carry more stock than the batches you can afford to buy in, or can fit in your stockroom. How do you address these problems, and get the best return on the resources you have, while meeting the expectations of your customers?
When the limitation is logistic or financial, there are many options and opportunities available. Not all suppliers require cash up front, or buy in minimum quantities. Some suppliers might offer credit, but they risk losing stock if the worst happens. That’s why there is growing interest and demand for another option, which benefits both suppliers and retailers.
DropShipping
DropShipping is a more efficient use of everyone’s time and resources, especially during peak season. Problems with this method have historically been logistical and technological communicating order and inventory availability information, and making/collecting payments. Today, this approach is significantly more efficient for retailers and provides complete automation from start to finish. Suppliers simply upload their inventory, after which you can then select what to add to your inventory. Once set up, every aspect is automated, including connections to online shopping carts, marketplaces and shipping integrations.
Tapping into trends
The flexibility of this method means that you can easily tap into market trends without having to commit to large quantities of stock. This means the ability to instantly add in new lines, seasonal items and quirky designs. Responding quickly to market demands has always been risky; no retailer wants to be left with excess stock which they can’t sell, or have to discount heavily in order to shift. Adopting this method enables you to test out new lines completely risk-free.
Better cashflow
By suppliers holding stock, and only dispatching orders when payment is made, DropShipping allows you to maintain control of your liquid cash until sales have occurred. It means you can focus directly on selling, by optimising listings and marketing campaigns, and handling customer service. Suppliers also benefit from better cashflow, and can respond to the needs of sellers, gaining maximum value from stock. Suppliers typically spread the cost of additional space and staff across multiple sellers which helps to further reduce shipping costs, the risk of dead stock, and ‘Sale or Return’ arrangements.
In summary, with big ticket events such as Black Friday and Christmas just around the corner, you can look to expand your product lines and grow your businesses instantly simply by adopting DropShipping into your existing business model. With nothing to lose and everything to gain, it could be the best decision you’ve made this year.
About the Author
Tejas Dave, Founder and CEO of eBusiness Guru and Avasam, has been helping eCommerce businesses worldwide since 2010. Avasam is a platform that allows wholesalers and sellers to collaborate. Tejas is revolutionising the shipping industry and creating a new level of financial stability with the aim of creating 5,000+ jobs within the UK. Tejas is using technology and automation to provide solutions to e commerce challenges by removing the limitations that are currently placed on what and where people can sell. More information is available at www.avasam.com
