Dropshipping is a type of retail method where a store does not stock the products that it is supposed to sell. Instead, when a customer asks for a particular product, the store purchases it from some third party supplier who then ships it directly to the customer’s provided address. In this procedure, the merchant never handles or sees the product. The most important difference between the standard retail procedures and dropshipping is that is that a selling merchant does not own or stock the inventory but only purchases the inventory from third party suppliers like a manufacturer or a wholesaler.
Choosing to dropship wholesale clothing to the customer directly instead of dealing with the inventory has a number of advantages. These are as follows:
• For an upcoming merchant who is looking to start an online clothing business, there can be nothing more beneficial than dropshipping as it requires very little capital. Traditionally in most cases, a retailer needs to spend a lot of money buying inventory for his store. However, with this method the retailer does not have to buy a product from a supplier unless the customer has already made the payment. This allows a retailer or merchant to run a business with very little money.
• As this process does not require a retailer to deal with bulk amounts of physical goods, it makes starting a business fairly easy. With this method, a retailer does not need to worry about managing a warehouse, tracking inventory for the purpose of accounting, packing and shipping the orders, handling inbound shipments and returns or managing stock levels.
• The method of dropshipping makes it possible for a retailer to run his business from any location as it does not have the constraints that comes from maintaining a warehouse or a fixed address.