jagath
Snapchat valued at $10bn by Californian investment firm
Austin companies Ordoro and uShip bring simplified freight shipping for SMBs
That's a huge assumption. The only way to know for real is to A/B test. You may be surprised by what testing will tell you. We constantly A/B test landing page designs at Ordoro, and have often found results that are counter-intuitive.
If you ask an undergrad student, the answer is always a "yes" or a "no".
If you ask a master's student, the answer is always a "may be".
If you ask a doctoral student, the answer is always "i don't know".
Pros of dropshipping - You are not sinking your cash into inventory. So, dropshipping is better for your cashflow. - You can vastly increase your product offering at very low cost because you are just displaying the pictures of someone else's product. You are not buying the product up front. - You don't need to worry about shipping goods, managing a warehouse etc. You just focus on marketing and selling the goods, and you keep the margin (Diff between what the customer paid you and what you owe to the supplier)
Cons of dropshipping - You are trusting your brand with some one else. If the supplier doesn't ship on time, the customer is gonna scream at you, not at the supplier. - Margins are much lower. Since the supplier carries all the inventory risk, they will also eat up the margin correspondingly.
PS: My company Ordoro (http://www.ordoro.com/) offers software that helps ecommerce retailers manage their dropshipping workflow. This includes rules-based notification to your suppliers, and shipping notifications to your customers.