Dropshipping - a tool for testing demand
The direct-to-consumer market will continue to grow steadily over the next 5 years. This means that dropshipping will continue to be popular as a simple and affordable online business model. Retailers and distributors use dropshipping to expand their assortment and test demand by buying small trial batches of goods.
Demand testing helps a business make informed decisions about cash flow, resource allocation, and marketing costs.
By constantly experimenting and observing the actions of competitors and correctly identifying trends, a whole group of products can be identified for which there is already or is predicted to be an increased demand. It is necessary to take into account seasonality and prepare for sales of seasonal goods at least one month in advance.