Shipwire in the News

Increase Margins by Carrying Inventory in Your Dropship Business

Rebel CEO, December 18, 2014

In my consulting practice, I often work with entrepreneurs who own dropship e-commerce stores and are struggling to expand. Dropshipping as a business model is getting harder and harder – margins are compressing, niches are getting crowded, and everyone is in a brutal price war with Amazon. As a result, many dropshippers are finding it increasingly difficult to grow top-line revenue, and are looking for ways to grow the bottom-line instead by expanding margins.

One of the best ways for a dropshipping business to expand margins is to do the one thing they’re all scared to do – take on inventory. Although it seems scary, taking on inventory is actually one of the easiest and lowest risk ways to make more profit quickly. In this post, I’ll break down some of the reasons why carrying inventory is a no-brainer home run for most established dropshippers:

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