Have you ever dreamed of running an e-commerce business? Do you have a business plan, or at least an idea in place, but simply don’t have the space for inventory or even the funds to rent a space for inventory?
It’s entirely understandable, as warehouses are pretty expensive. So, one thing that a lot of people are asking, since most e-commerce businesses have a high barrier to entry, is whether it’s possible or not to deal with inventory.
So, just imagine not having to touch a single box of inventory! Just imagine sipping coffee in your favourite café, managing orders on your laptop, while someone else does all the heavy lifting—literally.
Well, guess what? It’s not only possible; it’s becoming the new norm for a lot of e-commerce; sure, not every business is the same, but this is becoming pretty common— especially with how expensive rent is getting and how much smaller homes and offices are getting to. But how is this even possible, though?
The Hassle of Inventory Management
As you might have already guessed, managing inventory is a drag. It’s not just about finding space to store your products—though that’s a headache on its own.
You’ve got to keep track of stock levels, handle returns, deal with damaged goods, and, worst of all, manage the chaos that comes with holiday shopping sprees. One wrong move, and you’re either out of stock (cue disappointed customers) or buried under piles of unsold merchandise.
It’s a juggling act that can quickly turn your e-commerce dream into a logistical nightmare.
There’s Always Dropshipping
So, there are a few ways to go about dealing with (and flat-out avoiding) the hassle of inventory, and dropshipping is actually one of them. Now, at this point in time, who hasn’t heard of this?
It’s pushed by “hustle bros” on TikTok, and there are more than enough content creators out there pushing this as a “get rich quick” type of business. In reality, you won’t get rich quickly, but you can still have your dream e-commerce business without the hassles that traditional e-commerce businesses or brick-and-mortar shops deal with.
So, you list products on your website, but instead of stocking them yourself, you partner with a supplier who holds the inventory. When someone places an order, the supplier ships the product directly to your customer.
So you never touch the products, but at the same time you don’t know your products too well either (at least usually). Now, this is just one option, but it’s not the only option though.
Outsourcing
Have you ever heard of Amazon Fulfillment or even 3PL logistics? These aren’t entirely the same, but they’re both super helpful in creating a business where you won’t need to deal with inventory (but you’ll still have to pay for storage rent, fees, etc.).
If you want more control over your brand and faster shipping times, you might want to look into third-party logistics, so this isn’t like dropshipping. Instead, you do buy and own the inventory, but you never have to store, pack, or ship it yourself. You send your products to a 3PL company, which takes care of everything for you.
But with this, you usually have your own web-shop or use different platforms. When it comes to Amazon Fulfillment, you use Amazon and their warehouse (again, similar but not the same).
Take Away
While drop-shipping may seem like a convenient option to start an ecommerce business, it often limits your control over the customer experience and your brand.
By choosing 3PL logistics or Amazon Fulfillment services, you can gain more autonomy over your business operations while still benefiting from the convenience of outsourced fulfillment.
These services allow you to own your inventory, ensuring you have greater control over product quality and pricing. Additionally, they provide faster shipping times and improved customer satisfaction, ultimately helping you build a stronger and more sustainable online business.
