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EFF SOURCE Fashion business success without compromise

2 February 2015

Drop Shipping Retail: The Pros & Cons

Contributor Ayla Angelos

reve en vert

SOURCE researcher, Ayla Angelos speaks to the founders of 4 online retailers about the drop shipping model, what it is and the pro's and con's of using this retailing approach. Image: rêve en vert

Drop shipping is a retail model that is gaining steam, especially amongst newer brands and retailers. On one hand, it presents a simple and easy way to make money and on the other it’s a complicated method that can decrease profit margins.

To some, this might be the most advantageous way to build sales but before deciding whether this model would be most suitable there are many pros and cons that will need to be considered.

In this report, we look at:

  • What is drop shipping?
  • How has the market evolved?
  • What are the pro’s and con’s of this model?
  • Who should use the drop shipping model?
  • What does this model mean for the future of retailing?

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