Dropshipping offers small scale traders a low risk, low investment way to start and grow an online business. It’s the perfect solution for those wanting to start their own business but who don’t have the capital available to buy wholesale products in bulk.
However, its take up in the UK has been hampered by bad publicity, due mainly to the poor reputation of some of the wholesalers who were the first to offer dropshipping in the UK.
The problems which faced the retailers were many: some of the wholesalers charged customers simply for signing up; the products they sold were poor quality and were widely available; and the margins they offered were so low, it was impossible for retailers to make a living.
In addition, there were issues with stock availability and delivery and perhaps worst of all, some wholesalers undercut their own customers by retailing their products more cheaply. Sometimes they did this under their own name, sometimes by setting up a new company to keep their customers in the dark.
As a result, internet forums for online retailers were full of accounts of people complaining about dropshipping and the companies that were operating these types of business.
In the USA, however, dropshipping has been used successfully by reputable businesses for decades. Rather than sticking to a small number of large scale retailers who buy in bulk, American manufacturers and wholesalers also dropship for many smaller internet businesses that serve niches in the market place. It’s been an incredible success for them. Now the bigger businesses are getting involved in dropshipping too. Over 30% of US, online retailers use dropshipping in whole or in part, including Zappos, Amazon, Sears and Wayfair.
Now finally, after years of not being taken seriously, the UK market is beginning to take notice of how dropshipping is used in the US as a successful solution for order fulfilment. A growing number of companies now offer dropshipping and an increasing number of high profile retailers are now requiring manufacturers and wholesalers to offer it.
Whilst dropship margins are slightly lower than traditional wholesale margins, this is offset by completely eradicating the losses attributed to unsold stock and by the huge savings retailers make in warehouse and delivery costs. It also helps them enormously with cash flow, as the final customer pays them before they pay the dropshipping company.
Here at Timber World we take our dropshipping service very seriously indeed. We know that if we restrict ourselves to traditional wholesale methods we create a barrier for many smaller scale retailers. Log cabins and garden buildings are expensive for retailers to buy, costly to transport and require large storage space, warehouse staff and equipment to move them.
Our dropshipping service means you do not need to worry about any of this. You can sell our products without the need to buy up front, store in a warehouse or transport them to your customers. All you need is a channel through which you can sell, be it a website, online auction, leaflets, brochures or advertisement in a local newspaper.
In addition, we’ll guarantee you a margin or 10% – 15% (depending on the product) and as we do not sell any products to the general public, we won’t undercut you. And, of course, like any reputable manufacturer, we wouldn’t dream of charging you to sign up for an account.