The biggest advantage of the drop ship model is that you don't need to own any stock. Instead, you sell virtual inventory that being stored and shipped directly from suppliers to customers.

It means:

No buckets of money needed. You only pay for the stock you sell, so the risk of spending a lot of money on unsold stock is zero!

A wide range of products offer. With drop shipping, you can expand your catalog with little effort. This is a huge bonus because broad product selection is one of the key factors that influences customers' purchasing decision.

Time saving is key. Dropshipping can free your mind from warehousing, shipping and fulfillment. The supplier takes care of the practical operations for you. Your only job is to focus on the things that will have a greater impact on your bottom line: how to promote your online store and generate more sales.

One more bonus: Studies have shown that high shipping fee is the number one factor driving shopping cart abandonment. With drop shipping, the shipping cost is low because suppliers can often negotiate better shipping rates due to the extremely high volume of orders they send each day.