Pros and Cons of Direct Selling in 2023

Direct selling is simply the process of conducting buying and selling transactions through a third party, where the seller doesn’t hold inventory but transfers orders and shipping directly from the third party to the customer. While this method brings numerous advantages, it also comes with its drawbacks.

Pros of Substitute Shipping

1. Easy Start:
   • Getting started is straightforward and requires minimal preparation.
   • No high-tech skills are necessary.
   The key data you need to know is that there are currently 7.9 million online retailers worldwide, with 2.1 million in the United States. Why can’t you be one of them? Therefore, many direct sellers must have a reason.
   • No need for advanced technological skills.
   You don’t have to be overly proficient in technology to start. You don’t even need any experience in substitute shipping! As long as you’re willing to invest time in learning the basics, you can do well, just like 2.1 million others. You can start quickly and learn the rest during your learning process. One way is to use Shopify. You can try Shopify for free for 14 days. No credit card required.
2. No Inventory Management:
   • Eliminates warehouse maintenance costs and expenses related to storing inventory.
3. Wide Product Selection:
   • Ability to choose from a broader range of products due to no investment in inventory.
   Since you don’t have to invest in building inventory, you can keep up with trends and quickly add new products to your store. You can also swiftly switch your products without ordering new goods or clearing out existing inventory. When it comes to products, we must mention one of Topbase’s key benefits, which is improving product procurement for your direct selling service for free. You don’t need extra time to search for products from different suppliers or contact any suppliers. Topbase will be responsible for purchasing products for you. Additionally, the marketing experience of our sales team will help you find products faster than doing it yourself. You can see details here.
4. High Profitability:
   • Saves storage and inventory management costs, increasing profit potential.
   • You don’t have to buy in large quantities, so you won’t have excess inventory to push later.

Cons of Direct Selling

1. Lack of Basic Knowledge:
   • Requires patience, perseverance, and resource investment, especially when building a website.
   For beginners, the biggest hurdle is building a website. If you’re a beginner, I recommend using Shopify because it has a very intuitive drag-and-drop method and a free 14-day trial. But if you’re a beginner and lack experience with web languages, I recommend using Woocommerce or Wix. With them, you can create layouts very easily.
2. High Product Shipping Costs:
   • Substitute shipping products tend to have high costs, affecting customer purchasing decisions.
3. Delivery Delays:
   • Requires special attention to shipping speed to avoid delays and loss of customer trust.
   The price of the product depends on the supplier. Similarly, shipping speed depends on the supplier, meaning the shipping service provider. As you know, choosing the right shipping method is crucial for your business. Topbase is a substitute shipping company that can deliver products quickly to the United States with an average delivery time of 5-8 days. Other companies charge high fees for oversized orders, large volumes, or heavy parcels. But Topbase provides competitive prices lower than others.

In conclusion, direct selling remains a growing business model, especially with the rise of e-commerce. However, commitment and effort are required to overcome challenges and develop a sustainable business.