You may have been asking yourself this question, have done some research, and have been left with conflicting information. While some sources say drop shipping isn’t worth the profits and inventory control you’ll lose, others say drop shipping is an ideal way to increase profits and time.

Which version is true and how do you decide? Essentially, both are true. You won’t be doing your own shipping and it will cost to use drop shipping companies. But, it will save you time and money in the long run.

The best thing you can do is weigh the advantages against the disadvantages. So, what are those going to be exactly? Let’s look at the bad, then the good.

The disadvantages to using a drop shipper is that you will have to pay for their services and a handling fee for each product they ship for you. You are subject to their inventory availability, and can’t take advantage of bulk discounts. And the drop shipper will have control over shipping methods and times.

Your advantages are this: Drop shipping services and handling fees are far less than doing it all yourself. You’ll have access to thousands of products that you don’t have to store or inventory, so you’re not limited by storage space. Also, your drop shipping company will likely have shipping options you can choose for your company.

Now, let’s compare your choices. If you do it yourself, you’ll have to purchase all your products. Yes, you’ll likely qualify for a bulk discount, but now you have invested in products you may never sell. You’ll also have to store them, manage your inventory, pay for all the packaging materials, shipping costs, and get them on the road.

In contrast, paying a drop shipper their service and handling fees while they do all the warehousing, shipping, packaging, and managing may end up being a better option after all.

As you research your drop shipping alternatives, do an overall tally of what it takes to pay for everything yourself against paying the fees to have a drop shipper handle inventory and shipping. If you find an opportunity to increase your profits substantially by outsourcing, then your decision is easy.

Stuart Lisonbee is Search Marketing Manager at Doba, bringing wholesale dropshippers and retailers together and providing universal access to over 300 wholesale suppliers offering more than 1.4 million products ready for dropshipping direct to the end customer.