By Stuart Lisonbee
Most retailers acknowledge that drop shipping, when implemented correctly, significantly reduces time and labor. But does it translate into real monetary savings? The adage ‘time is money’ often rings true, but what is the actual value of drop shipping for your business?
This article will explore the true value of drop shipping using a logical, data-driven approach.
The value of time is subjective. For someone like Bill Gates, an hour is invaluable. Conversely, interns often work without immediate pay, valuing their time as an investment in future experience and increased marketability.
Similarly, investing in the stock market involves dedicating time to research with the expectation of a future return. If one values their time at $50 per hour, the investment goal would be to earn a return of $50 for each hour spent on research.
Drop shipping saves retailers valuable time by outsourcing inventory management, order fulfillment, and shipping logistics.
Part 2 of this series will delve into the specific monetary value of the time saved through drop shipping.