Dropshipping Business - Benefits of this home based profit generating buisness

In the past years, Dropshipping has appeared as one of the most profitable businesses. It is defined as such method of selling in supply chain management in which the retailer or any other person, does not keep products or commodities in his warehouse as the stock. Infact, the dropshipper keeps sample of products or list of catalogues of products in which he is dealing in. When customer orders goods to dropshippers, he forwards customer’s order to wholesaler, distributor or manufacturer, who delivers the product to customer direct from their inventory. Some time earlier Dropshippers were mainly retailers but now-a-days many other people have also started practically dropshipping business.
Dropshipping is a very simple business as anyone can do it as long as he has fare knowledge of supply chain management and general awareness of market trends. Dropshipping is a home based business and can be operated from any part of the world; the dropshipper only needs a system (computer or laptop), internet and a website to start his business smoothly. Dropshipping is now considered as one of the most profits accumulating home based business which can gather high profits easily without any investment.
There are three kinds of dropshipping which are widely known. “Blind Shipping”, in this type of dropshipping no return mailing address is sent to customer, so that the customer cannot contact the wholesaler. The second type is “Private Label Shipping”, in which product is delivered through wholesaler but return address of dropshipper is also sent. The last type is “Customized Packing Slip” in which dropshipper’s name, company logo and contact information is sent as a return address.
The greatest benefit of dropshipping is the inventory reduction. The capital of dropshipper is hoard and in case if dropshipper has to pack up the business then he will be at safe end as he has nothing to lose. This business has no set-up costs; means that the dropshipper has to pay nothing from his pocket to start this business. Dropshippers never face risk to face expiry date products, loss inventory or risk of damaged or broken products as he has nothing to store in his own warehouse so there is no need to spend costs on preventing these.
There are also no chances of frauds or delayed payments as dropshippers have direct contacts with the wholesalers. The only thing to consider while doing dropshipping business is to remain up to date with your wholesale supplier and his inventory.