Start Your Hair Business With Dropshipping
Dropshipping hair extensions is a technique of business where the product is shipped to the consumer directly from a wholesale warehouse, thus eliminating the need for a company to hold a large amount of stock. Orders are placed with the retailer, who then, in turn, sends the customer’s shipping information to the wholesaler for shipment. From here the wholesaler ships the item to the customer, often using custom packaging, such as return labels and packing slips with the retailer’s logo. The process helps to cut out the middleman while saving space for the retailer.
There are several benefits to dropshipping and is certainly a great way for an emerging business to get their start. It gives business owners the ability to start a company with very little initial investment or space needed. It allows them to explore products or offer a wider variety of products because they don’t need to keep them in stock. The cost savings are hugely beneficial, and the ability to start and run a business from anywhere, even remote locations, is possible with running an online retailer that utilizes drop shipping. Read on to discover the benefits of dropshipping in detail.
Eliminates Need for Storefront
One popular reason retailers choose dropshipping in this day and age of internet shopping is that it can, if the retailer chooses, entirely eliminate the need to maintain a storefront. E-commerce is considered to be the future of retail for many different industries because of the many different benefits of it, and dropshipping is a huge contributor to the success of many online retailers. Because the retailer doesn’t hold any product in stock, they, therefore, don’t need the space to store the product. Without needing to maintain a storefront, they are able to dedicate more time to selling the product and promoting their hair extension website or business.
One of the major benefits of a purely digital storefront is that it opens up opportunities for retailers in places where there may not have otherwise had the option. If space is limited or the business is operated out of someone’s home, dropshipping is a great option because these companies may not otherwise have been able to accommodate the business. Retailers who utilize drop shipping are able to work in an area where they may not have the necessary demographics to run a specialized business. It also means the retailer is able to move the business without disrupting their service to customers. They are able to travel or move to a new location while maintaining their business.
Only Requires Small Space
For those businesses who prefer to also have a physical store, they can do it in a much smaller space than retailers who carry all items in stock. They are able to offer a wide variety of items without needing the warehouse or storage space. For those who choose to maintain a storefront, can display floor models of the product they sell to show consumers what they are purchasing, and ship the product directly to the consumer after they purchase it via dropshipping.
Having a small space means they can have multiple storefronts if they choose because they don’t need to put all of their funding into a large storage place. It also opens up options as to the location they are able to offer their services. This is an exceptionally good way to sell large products that require delivery regardless of whether they are held in stock or at a wholesale warehouse. It also means for those running an E-commerce, that they really only need the space to monitor the activity on their website and take phone calls from customers.
Having a small storefront or no storefront at all result in huge savings for the retailer. For online retailers, no physical storefront means they don’t have to rent or purchase a store, plus all the maintenance related fees, insurance, electricity, water and other utilities. This is an incredible amount of money savings. With these savings, they are able to hold a hire profit for what they do sell utilizing dropshipping, and potentially pass these savings on to the consumer.
For retailers who do maintain a storefront in addition to their online presence, much less space is required because they don’t need room for the product. This also eliminates the payroll needs of employees to unpack, stock and in some cases, repack and ship the product. Additionally, because the product comes directly from the warehouse, the profit margin is the amount they choose to charge for the item over wholesale costs, with a shipping fee taken out.
Easy to Start a New Business
A huge benefit of dropshipping, as a result of the cost savings and need for little space, is the ease of business entry. The initial investment is reduced greatly by utilizing dropshipping when starting a new company. Those who are just starting out need very little startup funds because they don’t need the upfront costs of stocking products before they can be purchased, or for renting a large space in which the business can be run. These upfront savings allow for a business to get a better foundation in place as they start their company.
There is also the added benefit of having the money in hand as soon as an order goes through, covering the cost of buying it from the wholesaler with the profit on top. There is no need to pay for the product in advance because it is paid as the demand is met. This ensures the retailer never has overstock or has to carry products from a previous season. It also means they can sample the products to sell without committing to always having them in stock.
Particularly for retailers with a small staff, the time-saving benefits of dropshipping are a game changer. Because there is no need to run a huge store, and stock, pack, and ship products, there is much less of a time commitment or need for employees. With the time benefits, the retailer can then work on ensuring their company thrives rather than making sure the shelves are properly stocked.
An additional benefit from saving time is that the retailer is able to improve the customer experience. They are able to dedicate their time to providing excellent customer service. They can also better understand the products they are selling so they can provide informed advice to their consumers. They can also focus on marketing their business because they are able to save on upfront costs. They can invest in marketing to ensure the success of their endeavor.
New Products Faster
When a new hair extension product is available through a wholesaler, there can often be a several-week-long delay before retailers receive the product. This is because the retailer has to dedicate time to packaging and shipping it to the retailers. A benefit of dropshipping is that as soon as it becomes available in the wholesaler’s inventory, the retailer is able to immediately market and sell the product.
With such a fast introduction of new products to the market, those retailers who utilize drop shipping are a step ahead of other companies. Their reputation will benefit from the fast turnaround of receiving new products. It also means consumers may browse the website more often in search of new products which can lead to increased business from impulse buys. Higher web traffic is beneficial to a new company.
Company Can Grow
There are no constraints on how large an E-commerce company can grow when it relies on dropshipping for order fulfillment. As the business grows, the workload doesn’t increase. There is no additional need for hiring more workers to package and ship the product because this portion of the process is handled by the wholesaler. There also is little need for a larger space if the company increases its product volume because the product is not on site.
As the demand increases, there may be the need for additional customer service, but this ensures the company maintains the level of quality that it grew its business on. Time can be spent training new employees on their customer service skills rather than training them on packing and shipping. Dropshipping allows for all the employees for the retailer being well versed and trained in the hair extension industry.
No Shipping Experience Necessary
When a business utilizes dropshipping, they can leave packing to the professionals. It isn’t necessary to stock shipping supplies, pay for shipping or even have any experience in packing and shipping. The shipping and handling are left to the wholesalers who have all the necessary knowledge and supplies to ship the product. This ensures the product arrives at the customer in the same condition in which it left the warehouse. It can also help the product arrive at the customer faster when there is a dedicated team of packers at the wholesale warehouse.
Dropshipping is especially beneficial for companies selling high value products such as hair extensions. It isn’t necessary to invest in security systems and private storage that are made to secure expensive inventory as this responsibility is left to the wholesaler. This is hugely beneficial to retailers as they can specialize in marketing the product, without having to worry about the stress of shipping and inventory.
Offer a Diverse Stock
As a result of not needing storage space, retailers, especially online, are able to offer a wider variety of lengths and styles. Carrying a diverse stock of hair extensions will help to attract a larger audience of customers. When a retailer has to provide storage for the multiple variations of each item, they may have to narrow their stock down to two or three different versions. If they utilize the dropshipping, they are able to sell many different items and many different models or versions of said item without having to maintain a storage facility or warehouse.
The same can be said in a storefront, as they can display more options without having a huge backroom to stock them all. This gives companies that operate using the dropship method of order fulfillment a benefit over competitors. When a company is able to offer a wide selection, they are more likely to be able to offer their consumers the exact product they want, rather than just something similar. In doing so, they are able to provide a better level of satisfaction to their customers.
Larger Audience of Consumers
When a retailer is able to offer a wide variety of stock, they are able to attract a wider demographic of consumers. Especially for retailers who offer a very specific item, dropshipping allows the item to be shipped anywhere, rather than only targeting a small local audience. This helps specialized businesses to thrive when they may not otherwise due to a lack of customers.
Even companies who don’t have a specialized stock are able to reach a wider network of consumers because they can ship anywhere with drop shipping. This is beneficial to both the consumer and the retailer, as they can get consumers outside of their typical area. Engaging in E-commerce is hugely beneficial for getting a large customer base because people who may not have otherwise known about the company are now able to access it at the tip of their fingers.
Overall, dropshipping hair extensions offers stylists, salon owners and entrepreneurs opportunities they may not have been able to attain by having a different order fulfillment method. It opens doors for niche market companies, as well as allowing retailers to offer a wide array of products without the need to house them all. It also offers them flexibility in the location to run the business. It can move as needed and as the market changes. Companies just getting their start are able to save money, focus on marketing and gain a large customer base while maintaining a limited inventory and low investment. Companies just starting out, or those looking to reduce inventory while maintaining their business can benefit from utilizing drop shipping.
Launch Your Hair Extension Business!
Private Label Extensions launched it’s sister company Dropship Bundles to help supply those looking to start their hair extension business with the dropshipping method. It could also be a great backup for online orders if you are out of stock. We think there is no easier or cost-effective way to get your hair extension business started.