Drop Shipping Seen As An Important Cost Cutting Solution

The absence of warehousing costs, inventory insurance cost, and the elimination of shipping hassles will help to significantly improve the profitability of a small business. Larger companies can also benefit from drop shipping because it allows them to expand their product line while reducing inventory costs. End Quote

Drop Shipping is a new way of inventory management reducing shipping cost and business risk

Los Angeles-Long Beach, CA (1888PressRelease) December 30, 2009 - Drop Shipping has made many companies to stay competitive and remain in business during the present economic recession. Drop shipping allows companies to reduce their costs by reducing or eliminating warehousing, insurance, and shipping costs.

Nowadays, many new companies face the inventory dilemma of either carrying too much inventory or having insufficient inventory. Using drop shipping solves this dilemma. Many companies are now selling the products without having items in stock. The ordered goods are shipped from the manufacturer or the middleman directly to the customer under the reseller's name. The seller or retailer is not involved with the shipping and stocking the goods anymore.

Drop shipping means the middleman or seller will have more time to focus on sales and marketing because the seller does not need to maintain a warehouse and take of the shipping anymore. "Whatever the size of your business, every online company can benefit from drop shipping because it allows for product line expansion without inventory storage and shipping is taken care of by the drop ship supplier," says Mark, marketing manager of BigDropship.com.

Even larger sized businesses that want more control over their shipping are now gaining benefits from drop shipping by having fewer inventories in storage, thus reducing warehousing and insurance costs. "In today's economy, every company needs to be more efficient by reducing costs and inventory, insurance, and security costs can be quite significant for most businesses," says Mark.

Drop shipping has made smaller sized businesses to avoid shipping and packaging hassles because their drop ship supplier will ship the goods directly to the customer. Also, small businesses cannot afford to keep large amounts of inventory in storage and the associated insurance costs are too high. BigDropShip.com is seeing a growing demand for drop shipping service.

http://www.bigdropship.com

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