Dropshipping can be said to be a retail fulfilment procedure where a store does not keep its products in stock, rather the store purchases these products from a third-party supplier and ships it directly to the customer.
The Dropshipping business is one that you as the seller does not have to own a warehouse where you store your products instead you purchase products from your supplier to fulfill the orders of your customers.
This means that you do not have to handle the goods directly.
IS DROP SHIPPING WORTH IT?
Dropshipping is a legitimate business that you can start as a side business.
One good thing about Dropshipping is that it is a type of business where you can sell to your customers without having to worry about the risks involved in buying the products.
You only purchase the products from your supplier only when your customers have placed an order.
So if you are one of those people looking for any risk free, low capital business that you can start online, I bet Drop Shipping is one of the best options you can consider right now.
Therefore, if you are a smartphone owner or probably a personal computer you are half way to start making quite some amount of money in the Dropshipping business.
ADVANTAGES OF DROP SHIPPING
Now before you go into any business whatsoever, you must consider the pros and cons of that particular business.
What I mean to say is that you should first consider the advantages and the disadvantages of any business before you even start getting interested in the business.
Drop Shipping is a new and trending online business today and just like every other business be it an online business or not, there are some visible advantages and disadvantages involved in it, but here we would be talking about the advantages of DropShipping.
Dropshipping is a very lucrative business idea that you can consider as an entrepreneur.
The advantages of Dropshipping are almost limitless.Here are some of the advantages of Dropshipping that may excite you.
- LOW CAPITAL
One of the biggest challenges of any entrepreneur interested in starting a new business is the capital involved in starting up that business.
Many entrepreneurs have forsaken their beautiful business ideas because there is not enough capital to start the business.
The issue of generating a large amount of capital before going into a business should not worry you if you are interested in starting your Drop Shipping business this is because the normal business methods where a seller needs to acquire quite a huge some of capital to purchase products in bulk and store them in a warehouse, the Dropshipping business requires very low capital to start and run the business.
The Dropshipping business comes in a manner in which the only money required for you as a seller is the one you would use the purchase the goods pre-ordered by your customers.
- LOW RISK
Another very important consideration an entrepreneur has to make before venturing into a business is “how much of a risk am I taking in this business?”
The fear of risking too much has killed some businesses even before they were started! But just as we have already mentioned, the Dropshipping business is a low risk business because you do not have to worry about the risks of incurring large amount of goods.
This is to say that there is little or no risks involved! You only purchase the products after the orders have been made by your customers.
- YOU HAVE NO SPECIFIC LOCATION
Drop Shipping is all in online business. By All in online business, I mean that it is a business where everything you have to do about it is online meaning that you have no specific location.
The normal conventional online trading business requires you to purchase your products in a large quantity and thereby storing it in a warehouse which now becomes a fixed location for your business making your online shop only a platform for selling the products.
But in Drop Shipping, your location is flexible. That is to say you do not have a location for your warehouse
- YOU ARE A FREELANCER
Most traditional traders online have a specific category of products that they sell.
A trader can choose to sell electronic gadgets, furnitures clothes etcetera. But as a Dropshipper, you are entitled to a broad range of products to select from and display to your customers.
That is to say that you are not tied to a specific category of products. Since you have not pre-purchased any of the products you advertise, there is no limit to type of product you can sell.
DISADVANTAGES OF DROP SHIPPING
Just as we have said before, every business has its pros and cons and in as much as the Drop Shipping business is a very lucrative and exciting one, it still has its disadvantages.
There are always two sides to a coin, the same way there is always the negative aspect of everything including business and in order for you to be well equiped for success in every business that you plan to invest in, you must study its cons
- SELFISH SUPPLIERS
One of the most disheartening cons of Drop Shipping is when you have selfish and unreliable suppliers.
Since the Drop Shipping business is all about placing an order for a product that has already been pre-ordered by your customer to your supplier, this gives the supplier an ample opportunity to bypass you and deliver the products directly to your customers.
Therefore as an intending Drop Shipper you must be careful of selfish suppliers and make sure that you do business with suppliers that you can count on their integrity.
- LOW PROFIT
If you are interested in a new business that you can start online and gain large sum of money as your profit, then you should never consider Drop Shipping.
In online marketing, the real profit goes to the conventional dealers who buy their products in bulk and store them in warehouses while the Drop Shipper makes little gain out of the fixed prices of the conventional traders.
Since the Dropshipper does not buy his products in bulk from the conventional dealers, these dealers would not grant them any discount whatsoever that comes with purchasing a product in bulk.
The dealers would sell to the Dropshipper the same amount that he would sell to his other customers making securing a strong customer base as a Drop Shipper quite difficult.
Because of this, the Drop Shipping business is not one that can make you rich, it could be a business that you can adopt as a side hustle.
- YOU DONT HAVE FULL CONTROL
Another vital information you should equip yourself with before venturing into the world of Drop Shipping is that you are not fully in control of a lot of things.
These things include; the quality of products, time frame for delivery and customer service. As a Drop Shipper you are dependent on the stock of your suppliers.
If the products that your supplier sells lacks the quality demanded by your customers, the blame goes to you and not your supplier and considering the fact that you only have to make the purchase of the product only when it is been pre-ordered by your customers, you would not know if the product actually fit the quality that you advertise on your online shop
DROP SHIPPING FOR BEGINNERS
If you are wondering ” How do I start Drop shipping” then I must say that you have come to the right place.
Here are a few tips that you might consider if you want to start Dropshipping as a beginner
- FIND A NICHE
- FIND A SUPPLIER
The next thing you are expected to do is to look for suitable suppliers. Do a thorough online search.
There are two vital things that you must consider while doing an online search for your potential suppliers, first you must look for dealers and never to mistake a fellow Dropshipper as a dealer.
The main reason it is of utmost importance that you make only dealers your suppliers is because they sell their products at quite a cheaper rate than the other marketers on what ever platform that you have chosen.
The second thing you do is to beware of scammers.
There are a lot of scammers on the online markets today and you would not want to be a victim of their scam because that would totally destroy your business.
- CREATE AN ONLINE SHOP
When you are done looking for suitable potential suppliers, you should now go ahead and open your online shop. This is where you would display your products for sale.
- RESEARCH ITEMS
When you have finally found a good supplier you should also find out the products that you want to market for them to your customers
- LIST YOUR PRODUCTS
Let you customers know the products that you have listed for sale
- COLLECT ORDERS FROM CUSTOMERS
Take orders from your customers and send those orders to your supplier
DROP SHIPPING COMPANIES/SUPPLIERS
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