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Given its lower margins, one may wonder if drop shipping is worth pursuing. The consensus among experts is that drop shipping serves as an excellent entry point for budding entrepreneurs, allowing them to test various products online without significant financial risk. This model permits sellers to analyze sales data effectively, facilitating the transition to private labeling or stocking the most profitable items.
Automation Potential
An added benefit is that the drop shipping process can be largely automated. Established drop shipping suppliers often support Electronic Data Interchange (EDI), linking inventory systems directly to an e-commerce platform, ensuring smooth order fulfillment while minimizing manual input.