Advantages of Outsourcing Services for Drop-Shipping Companies
In the last two years, a lot of entrepreneurs have gone into the drop-shipping business thinking it was the next big (and easy) opportunity to make money.
Part of drop-shipping’s appeal is its pretty straightforward concept. An entrepreneur or a business is not required to keep products in stock. Instead what happens is the entrepreneur sells the product and passes on the sales order to a third-party supplier.
The supplier is the one who then ships the order to the customer. Meanwhile, the entrepreneur or drop shipper takes a cut from the sale of each item.
In this scenario, the drop shipper appears to earn a lot and saves on time and effort in the process.
Drop-shipping is not all it is cut out to be
Well, it is not actually that simple. There are often many intricacies involved in dealing with a third-party supplier. And for those starting out with drop-shipping, there are plenty of obstacles to conquer.
Not managing inventory means having a lower overhead. Unfortunately, low overhead means lower profit margins and ROI too. Since you are putting less money in, you will get less money out of it. That means you must do a lot of business just to stay afloat, let alone turn a profit.
Therefore, lots of e-commerce experts would advise that those looking to become online entrepreneurs in 2020 do not go the drop-shipping route.
However, an established commerce seller can use drop-shipping to complement existing services and grow his/her existing business. Furthermore, by engaging virtual assistant services from a small outsourcing company, he/she can free up time to focus on core tasks.
Why outsource and what to outsource
Most e-commerce entrepreneurs use outsourcing as a strategy to grow their businesses. In addition to freeing up time, outsourcing routine or non-essential business tasks helps reduce labor and operation costs. With outsourcing, business owners can also potentially hire people who are more skilled and experienced in specific fields like customer service, digital marketing, and web development.
A highly skilled virtual assistant can specialize in one or two of the aforementioned fields or has enough experience in each of them so that one person can do the job of an entire team.
Now, what specific tasks can drop-shippers outsource? Here are some examples.
Website Design
A person with ample experience in website design possesses the knowledge and experience to organize and improve the aesthetics of drop shipping site or online store.
Data Entry
This involves adding new products or updating the listing for existing ones, especially if supplier runs out of stock.
Writing Product Descriptions
A good product description sells boost sales. If a drop shipper does not have the writing skills needed to pull this off, hiring a copywriter to create product descriptions in bulk is a great way to outsource this task for a limited time.
Increase your chances of hiring an efficient and cost-effective virtual assistant in the Washington area. Look up Hutchbug Solutions and see how we can help you run your drop-shipping business with ease and consistency.
