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Technical Possibilities that changed sales: why dropshipping is profitable

True story of dinosaurs' ruin

In conjunction with new technical resources dropshipping has become serious competition to traditional commerce

Our ever-evolving world is built in such a way that in any sphere, sooner or later a new system comes along and replaces its primitive predecessor. In the same way that the dinosaurs were superseded by prehistoric microorganisms; traditional methods of transaction are giving way to dropshipping.

Actual and perceived pros of dropshipping

When talking about dropshipping, only a negligible person would fail to mention that this type of trade does not require any investments, shipping costs, or even a warehouse. As great as that sounds, however, it's nothing more than a legend - irritating to any logical thinker.
While a single given dropshipper bypasses all of these problems, the trade system itself definitely includes these steps and their costs are part of the overall price of the merchandise. Obviously, this is not what truly differentiates dropshipping from its competition.
A real advantage of this system is the lowering of the so called side-effects, which automatically happens through the growth of the processing centers. As an example, let's use warehouse workers. The volume of their work is directly related to the amount of product that needs to be shipped. If we have two workers working with product for one and a half, then one of the inevitable side-effects is the paid for but unused manpower.
This also applies to the product itself: to quench the demand, a retailer buys more merchandise then is needed and, as time goes on, some part of it often goes unsought until it almost completely loses its value.
When many small warehouses band together, however, all of these side-effects turn into one. The number of shipped merchandise doesn't change but the man-power handling it is considerably reduced and since every product in the warehouse is shared by several e-stores, devalued wares is no longer an issue.
A tank is much better

The time is here: technical opportunities are on the stronger side

Systems of trade resembling dropshipping have existed for a while. For example, ordering an exclusively made car or computer means that the product is created, packed, and shipped specifically for you and adhering to your wants and needs. Sounds familiar, doesn't it?
Not too long ago, this system was being used exclusively for expensive merchandise, providing no real threat to traditional commerce. But the revolution in information technology, forever changing the ways and speed of the exchange of data, gave change to this situation as well. The advancement of the global network allowed the manufacturer to literally be "a click of a mouse" away from the consumer and, in turn, made dropshipping advantageous for sale of any type of wares.

That, which is rare - is twice as valuable

Nevertheless, trade is trade: you can sell practically anything, but merchandise that is rarely bought has its own special advantages - and this should not be news to anybody. The sale of rare and expensive wares through catalogues, which existed long before the internet, is a perfect example. Even now, a prestigious jeweler will provide delivery of an exclusive watch or any other type of valuable "modern treasure". The customer doesn't realize that the distinguished service he's receiving is nothing more than dropshipping. The only difference being is that the "website" is made of stone and the "interface" wears a tie and talks.
Even today, this tradition lives on. When choosing the merchandise for your e-store, you can safely include exotics into your assortment of goods: the internet is where this type of product is most in demand since practically all vendors outside of the World Wide Web refuse to carry such wares; for fear that they'll never sell.
Small will die

Another legend related to dropshipping

Legends are created to romanticize the reality, or to disprove it. The legend that dropshipping is generally a waste of time for people who aren't serious about their work is definitely of the latter assortment. In reality, most of the largest online retailers use this type of system. The ever-famous eBay and Amazon.com, typical representatives of open dropshipping, were created specifically to bring together the manufacturer and the consumer, earning commission in the process. Some might also find it shocking that the largest retail chain in the world, Wal-Mart, serves as another classic example of a business taking full advantage of dropshipping. Once, while buying a knife on walmart.com, I noticed that the shipping was done by a completely unrelated company.
In other words, don't believe anybody who tries to tell you that dropshipping is nothing more than a small family business. The truth is, serious companies are seriously organized and their methods are virtually undetectable. With that said, our goal is not just to improve the assortment of goods provided by major retailers through the use of dropshipping, but the expansion of the business as a whole.

The perspectives of globalization related to trade

The modern commerce is dominated by globalization: the idea of chain-stores is only getting more popular while the internet is being deemed a colossal trade center. The retail chains are not the end all be all, however, that type of system is unable to bypass all of the negative side-effects associated with trade.
Dropshipping, on the other hand, is a completely unique system that is acutely compatible with e-commerce and provides the type of quality and speed in the exchange of information that allows foreseeing of long chains of events that would otherwise be impossible to predict. This is why the globalization of trade is much more likely to go in this direction.
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