The pandemic has taught us a lot of lessons, and one is that you don’t need a brick-and-mortar establishment to run a successful business. Global e-commerce jumped by a staggering $26.7 trillion since the start of the covid pandemic. Online entrepreneurs have made a killing from online stores, content creation, and, of course, dropshipping.
If you’re itching for a piece of the pie, try giving dropshipping a whirl, but what is dropshipping business, and is it a viable business venture?
Keep reading, and we’ll answer these and many more questions on dropshipping.
What Is Dropshipping Business?
Dropshipping is a retail business where you accept orders from customers but don’t keep the goods in stock. Instead, you relay the orders and customer’s shipping information to the product manufacturer or wholesaler. The manufacturer or wholesaler then ships the products in question directly to the customer.
The dropshipping business model premises on order fulfillment which involves selling items without a physical business location. It’s on you to transfer order information to the manufacturer, wholesaler, or fulfillment facility. They then ensure the product reaches the customer and you get your cut.
Dropshipping seems like easy money, but it’s a lot more complicated than what it looks like on the surface. There’s a lot of hard work that goes into running a successful dropshipping business. However, if you’re committed and consistent, you can make a killing from dropshipping.
Is Dropshipping a Profitable Venture?
Let’s address the elephant in the room, and that’s whether dropshipping will make you money. There’s no clear-cut answer to this because plenty of factors determine how much you can earn from dropshipping. Although dropshipping is a relatively low-risk venture, it’s not without its challenges.
That said, dropshippers earn around 20% to 30% of what they sell. That means if you sell goods worth $10,000, you’ll earn a cool $2000 or $3,000 without leaving your home. Some top-earners have managed to make a million dollars in just 12 months.
Clearly, a dropshipping business is a promising venture if you play your cards right. If you’ve been mulling on getting into e-commerce, dropshipping could be just what the doctor ordered. With that in mind, here are a couple of benefits of having a dropshipping business.
What Are the Benefits of a Dropshipping Business?
Dropshipping is a simple way to make money without having to invest a lot of capital. Dropshipping has proved very beneficial for entrepreneurs, and here are a few of its benefits.
Easy To Get Off the Ground
You can launch your dropshipping business in a matter of hours if you know your stuff. All you need to find is quality products and a reliable supplier, and you’re good to go. Sites like Shopify make the process pretty straightforward and effortless.
That said, you still need to organize one or two things before you can get your dropshipping business up and running. There are plenty of online resources where you can learn how to start drop shipping. If you commit to your dropshipping business, you can make a huge fortune.
You Can Dropship To Anywhere
Another advantage of dropshipping is that you can drop ship to anywhere you want to. The only thing limiting you from drop shipping anywhere is the shipping cost. If you think the shipping costs are worth it, you can sell the products anywhere you like.
You Don’t Need a Lot of Starting Capital
Dropshipping is among the most pocket-friendly businesses to venture into. That’s because you don’t have to rent or build a physical store or storage space for your inventory. You also don’t have to buy products upfront eliminating a major cost that conventional retailers must cover.
You can spend as little as $300 to start your dropshipping business. All you need is a steady internet connection, a laptop or smartphone, and you’re good to go. If you can’t start your own, you can look for a dropshipping business for sale and purchase it.
It’s Easy To Upscale or Downscale
Dropshipping is a virtual business making it super easy to upscale or downscale. If you get the hang of things, you can choose to upscale your business without breaking a sweat. Remember, the manufacturer or product supplier does all the heavy lifting while you give the orders.
You can use the money you earn from dropshipping and invest it into your marketing. That way, you can pull in more customers for increased sales and profits.
Essential Tips for Dropshipping Beginners
If you’re looking to get your foot in the dropshipping game, you might do good with a few tips to put you on the right track Here are a couple of tips for starting your dropshipping business.
The worst mistake beginners make is selling something that everyone else does. While there might be a huge demand for the product in question, the competition is just too cut-throat for beginners. Do your best to be unique and sell something that most people don’t sell.
That way, you can carve yourself a niche and dominate it. Think outside the box and make a killing. Business might be slow at first, but you’ll soon pick up the pace.
Don’t Let Price Be Your Only Competing Factor
You’re in big trouble if price is the only thing that makes you stand out from your competition. That’s because if the competition undercuts their prices below yours, you have nothing to offer. With that in mind, you’ll need to find something to give you an edge over your business rivals.
You can choose to focus on delivery quality, offers, and lots of other things to make you better than the competition. Regardless of your business environment, don’t let price be your only competing factor.
Give Dropshipping Business a Try
Now that you know what is dropshipping business is, it’s on you to make arrangements and get yours up and running. Succeeding in dropshipping needs 100% commitment and consistency. The internet is an excellent resource for advice and tips if you need any help.
For more informative articles, check out the other articles in our blog.