According to research conducted by Bid-On-Equipment, which was picked up in a Forbes report, the top 3 small businesses that Americans looked for information on Google are clothing lines, restaurants, and food trucks, respectively. Brandon Wetzel of Yardley, PA welcomes the fact that more and more Americans are thinking of entrepreneurship. However, given that an ordinary aspiring entrepreneur has limited time and resources, starting a business without a fallback plan is a huge risk. Brandon Wetzel of Yardley, PA believes there’s a better approach to entering the world of entrepreneurship, one that has less risk. That approach is the drop shipping business model.
What is Drop Shipping?
Brandon Wetzel of Yardley explains that drop shipping is a type of retail fulfillment method. In other words, it’s the process of receiving, packaging and shipping orders of goods. Traditionally, business owners have had to order their products, store the inventory in warehouses, and package and deliver them when they get an order. In the drop shipping model, businesses get to skip a couple of steps.
First, Brandon Wetzel of Yardley, PA points out that businesses do not have to keep inventory of their products. This alone is a huge benefit already as entrepreneurs will have more flexibility in spending their limited capital. While entrepreneurs can study and make forecasts on how quickly they deplete their stock and adjust accordingly, the risk that the goods might not be sold in the expected time frame is still there. As a result, their capital is now sitting idle in their warehouse. In the drop shipping model, businesses only purchase the product from its suppliers when a customer makes an order. For aspiring small business owners, this is exactly the kind of business model they should get excited about, as they can jump right in even without a huge capital.
Next, Brandon Wetzel of Yardley explains that in the drop shipping model, business owners do not have to worry about packaging and shipping orders. Typically, it’s the manufacturer or wholesaler who takes care of it. Again, this is another big benefit to aspiring business owners who have limited capital.
By now, you’re probably thinking, “Is there a catch to the model?” Brandon Wetzel, Yardley local, answers, “Of course.”
Tune in next time when Brandon Wetzel of Yardley, PA will address the drawbacks of the drop shipping model.
Meanwhile, Brandon Wetzel of Yardley invites his readers to do their own research about the ins and outs of the drop shipping model.