Om We Are Bowl Champs T-shirt

 , awareness around the drop-shipping model doubled in 2016 after years of stagnation. Interest in January 2020 was nearly nine times higher than in January 2016, and it is a growing global trend. Although the consumption of goods has not slowed, the marketplace has shifted from brick and mortar to eCommerce. This is especially true after the COVID-19 pandemic. ECommerce has allowed for the true decentralization of market share. All manufacturers experience a percentage of defective finished goods, even if less than one percent. In the past, manufacturers would inspect for quality with the knowledge that the retailer will also scrutinize when unpacking. When retailers forfeit this direct oversight of quality assurance, manufacturers may relax their standards resulting in more defective products. This can threaten your business as returns will almost certainly increase.

Since mass production leverages economies of scale, suppliers offer discounts for high quantity orders. The economic exchange for low-scale production when drop shipping is a higher unit cost, thereby reducing your margin. Turning over the inventory management responsibilities to a supplier can also mean blind faith in the oversight and communication of inventory levels for goods you sell on your website. If a customer orders a product that is out of stock, it can be a frustrating experience for all parties. It is best to discuss inventory management during partnership negotiations and have a procedure in place for refunds or replacement. The good news for your concern, is that once you are above a certain daily sales, no one can handle the volume alone.

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