With the dominance of mega e-commerce retailers like Amazon redefining how consumer shop and how manufacturers must meet the fast-paced on-demand world, drop-shipping is becoming a must to stay competitive. The days of carrying warehouses of inventory, taking days to ship out orders, and months to years in developing new product lines are quickly numbered. And as shipping and freight costs continue to increase, your margins will take a massive hit.

The truth is, consumers want what they want, when they want it, regardless of how much it costs you to get it to them. If your company cannot provide them with the convenient and affordable shipping options they want, 66% of consumers have no problem buying from one of your competitors.

That’s why dropshipping holds the key to streamline your order management and keep your sales on an upward trajectory. Here are the top three reasons why drop shipping will redefine the retail industry:

  1. Less Inventory Expands Your Capacity. When you don’t have to store everything you sell (or pay for freight to receive inventory), you not only reduce your overhead costs, but you also free up your working capital to invest back into your business. Your orders are processed and shipped on-demand, leaving you far less exposed during seasonal times and without the burden of having to “guess” how much of each product to produce. In this way, you eliminate the loss of revenue from having to run promotions or sales to move overstocked items.
  2. Orders Are Processed More Efficiently. The beauty of the drop-shipping model is that it shifts the order processing burden away from you as the manufacturer and enables you to create a better customer service experience. Whether you contract with one or several vendors to fulfill your orders, you can select those manufacturers who specialize in each particular product. Not only does this increase your products’ quality overall, but it also enables you to get your customers exactly what they want, quickly, without having to track down a product that has been sitting in a warehouse. With faster shipping times, your products are turning over quickly and generating larger profits for you in the long run. 
  3. Greater Access to New Products. With drop-shipping, you can easily pivot away from products that aren’t selling and launch new product lines in less time. This serves a dual benefit in driving sales. First, it enables you to quickly respond to market trends, consumer preferences, even seasonal nuisances to continuously give your customers more of what they want (and will buy). Second, it lowers the risk for your business in trying new approaches. If you can create a product concept, have it drop-shipped to customers on-demand, then you can be more flexible and creative in what you offer your customers without having to carry inventory for a product you’re not sure will sell.

The drop-shipping model, especially among furniture retailers, is one of the fastest-growing segments. And, as freight and shipping costs continue to increase, it will soon become the only way for furniture retailers to stay competitive in the market.