It also allows sellers some flexibility in terms of their location, as products can be sourced from overseas. With many reporting delays in international shipping to the UK, and increased fees for business between the UK and Europe due to Brexit, this could potentially be less of a draw.
However, dropshipping comes with risks, too. Sellers are likely to have low margins as they compete with bigger sellers – and that can make it difficult to grow the business.
Supplier errors, or shipping complexities, can also cause issues.
If a mistake is made by the wholesaler, the customer will expect the seller to fix the issue.
With a range of shipping issues to take into account, too, this can become complicated and expensive – products might arrive from different places, with the seller having to absorb the cost of sending the products.
While dropshipping is often seen as a money-saving solution by some small businesses, it often requires serious calculation to work out if the less-traditional option is better: so keep an eye out next time you’re on Depop or Etsy.
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