Drop-shipping – Transforming the business game for young entrepreneurs
Adesh Chaurasia– Drop Shipping
Traditionally, businesses followed a set pattern and structure wherein products were manufactured in-house, packed, and then transported to various retail stores in the market. In this particular primitive setup, all the botheration, manufacturing costs, losses during manufacturing procedures, labor fluctuations, market ups and downs, raw material price fluctuations, etc. were borne by the business owner or a group of owners who were in charge of such business activities.
As trends are changing in every aspect nowadays, the business industry isn’t also the one left untouched by the essence of change as well. Businesses left behind as a legacy by ancestors are not always the ones ruling over the market nowadays. People demand something new and fresh every day. Consumers nowadays are smart as ever before. The trend has now changed to the introduction of a new and different startup almost every day increasing the overall competition.
Not only is stiff competition a tough factor to deal with, but also, keeping touch with the fresh demands of customers that change every day is a major task to work on. The marketing of products and commodities now just doesn’t include searching for clients and explaining to them about the product to sell it successfully. In today’s time, convincing the clients to opt for your product leaving aside hundreds of similar products of other brands is the most difficult part to ace the pitch.
There are various factors to take into consideration at this point, keeping well with the quality of products and services; elaborately yet simply stating why the product is better than other similar products in the market; then pitching a nominal and affordable cost.
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Drop-shipping Industry- The new business hub
With the increment in the costs of raw material, manufacturing machinery, labor, transportation, etc. businessmen started bearing more losses than profits and at times failed at gaining any monetary benefit out of their businesses. Manufacturing costs can hardly be cut down in the business industry, therefore, to insulate themselves, the businessmen tried to find new ways to cut down these costs and earn a good amount of profit.
One idea to do so was to shift the whole business work culture from manufacturing and supply to just supply. In simple terms, for instance, if there are 3 people, A, B, and C, wherein C is the customer whose demand is of a pen; A manufactures pens as he owns and runs a manufacturing unit of pens; Here, B becomes a mediocre and buys pen from A at the cost of 5 bucks, then resells this pen to C at the cost of 7 bucks to A.
This way, A gained some money by selling his product to B, while B resold this pen to C, keeping his profit and C successfully pays for this pen and uses it as per his demand.
Drop-shipping is all about doing business being a mediocre party without any botheration, extra efforts, as well as hard work for setting up a business and incurring the repercussions while all one can do, is buy already manufactured products from manufacturers and factory owners to sell it further to customers that demand such products.
Reasons why drop shipping is a go-to option for startups
No manufacturing hassle
The hassle that comes along while dealing with the process of manufacturing products is extremely tedious to face, especially for young and fresh startups who are relatively inexperienced in the field of business. Drop-shipping is, therefore, a better business idea to jump on, as it minimizes the risk and complications involved in the regular manufacturing process.
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Comparatively stable profit extraction
The regular manufacturing business style involves a greater risk of losses due to unpredictable circumstances. However, the thing is not the same in the case of the drop shipping industry. The profits are relatively stable because no hidden losses or additional expenses are incurred majorly, apart from the transportation of goods and commodities.
In today’s era, where the world is rapidly changing, business trends are transforming every day. Businessmen and new entrepreneurs are coming up with fresh business ideas to deliver better and earn well too. The industry is wide open for new innovations and transformations to take place at every point.
He is an active learner, author and speaker when it comes to the subject of national development through scientific and relational ways. He presents his knowledge about his line of work in such a simple yet engrossing manner that it reaches out to the people so as to enhance their knowledge and put it to good use.