A Consumers Average Money Spent Each Year On Fashion The Peculiar Case of Drop Shipping – Do Drop Shippers Insulate Online Retailers From a Bad Economy?

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The Peculiar Case of Drop Shipping – Do Drop Shippers Insulate Online Retailers From a Bad Economy?

The recent global economic crunch has adversely affected the clothing industry. With lesser money to spend on basic needs, consumers are withholding purchases of clothing goods. With less money spent on clothes, many retailers, unable to absorb losses, are closing shops. These global trends do not however seem to affect online clothing retailers working with drop shippers.

Drop shippers play strategic roles in maintaining the profitability of the online retail industry, especially the retail of clothing merchandise. Most online retailers work at home. Their online stores are basically managed electronically and at the comforts of their living rooms. Unlike traditional retailers, they no longer keep supplies nor display them in stores. They are not even anymore involved in delivering sold items to the buyers. Instead, these works are now assumed by drop shipping suppliers. These drop shippers hold supplies and when called upon by specific orders by the online retailers, deliver the items to the buyers. With drop shippers around, the online retailer simply facilitates the sale and orders the drop ship supplier to make the delivery. Indubitably, the retail business has not been as easy when working with drop shippers. But how does drop shipping insulate the online retailers of clothing goods from the adverse effects of the present global economic crisis?

It is clear that retailers working with drop ship suppliers and companies do not have to invest large capital. Working at home, an online retailer can conduct his business by simply putting up his own web site and operate an internet store selling various clothing goods. He does not have to purchase supplies nor actually display them in conventional stores. An online retailer needs only a web site, a telephone number, an e-mail address and his uncanny ability to attract online buyers. Not much capital but the opportunity to earn gargantuan profits is limitless! Not being burdened by big operating expense, an online retailer of clothing products can afford to put reasonable price tags on the products he sells online. Indeed, drop shippers provide clothing goods retailers the necessary survival kits to withstand the ill effects of a bad economy.

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