Counting physical inventory is a necessary evil of retail inventory. Theft is a major concern in the retail industry – although not a strong concern for the small one-person online retail store. However, the National Retail Security Survey reports that the retail industry has a theft average of around 32% of inventory shrinkage. This inventory loss is due to shoplifting, employee theft, and theft by suppliers. With a dropshipper managing your inventory, there is virtually no worry about inventory theft and no extra insurance to carry. By buying wholesale products and using wholesale distributors that dropship, you will also be saving the cost of losing inventory through damage and unsold products. Excess inventories often result in a retailer having to sell their inventory at a markdown, contributing to lower profit margins, and even a loss. This will now become the burden of your wholesale dropshipper.
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