New York, NY (PressExposure) January 07, 2010 -- Recession battered businesses are coming up with innovative ideas to reduce operational costs during the economic recession. Businesses that are suffering losses are revising their operations to cope with the depressed economic climate. 90 % of the new businesses based on the traditional business models didnât survive last year. Only 10% survived by using drop shipping.
Most businesses are beginning to realize that going online and doing drop shipping has numerous benefits. The costs and hassles of shipping, warehousing, inventory, and insurance are eliminated by using drop shipping. The bigger the orders, the more they more profits they are getting. Customers simply look at the website and order the products they want by adding it to their shopping cart and paying for it with a credit card. Once the drop shipper has received the order and received payment, they will place the order with their drop ship supplier, who will ship the goods to the customer.
Drop shipping allows a business owner to spend more money on advertising and promotions because the cost of warehousing and insurance is eliminated. In a depressed, competitive economy, effective marketing becomes even more important to motivate customers to buy. Businesses that are using drop shipping survived the recession last year. They realized that drop shipping has helped them to focus on marketing, instead of spending time on operations.