Dropshipping: start a new business easily
Having your own electronic commerce is no easy task. Not only does it require you to spend a lot of money, but also a lot of time. The typical steps that any person that is new to this business has to follow are buying a professional website and hosting, paying for products, packaging, and storage, and then managing your business to make it succeed. However, fortunately for those with few resources, there is another option: dropshipping.
What is dropshipping?
This business model entails sending customers the products they want directly from the manufacturer or distributor, without the physical intervention of a seller. The seller, of course, will be your site (i.e. you), and your revenue will come from the difference in price between what the manufacturer charges, and what your clients actually pay. This means that, while with traditional web commerce methodologies you need to have some stock, with dropshipping you just send the order that your customer has placed straight to the manufacturer. In other words, you will be able to sell products through your site without having to spend a dime on inventory. Your focus will be closing the sale, while shipping and all the other stuff will be the manufacturer’s responsibility. However, as with every type of business, there are positive and negative aspects to consider before diving into dropshipping.
Is dropshipping right for me?
To know whether this type of business is what you are looking for, you should consider its pros and its cons. One of the benefits of dropshipping is how easy it is to set up a business. As you do not need to have lots of savings, and manufacturers do not ask for any requisites other than having a credit card, you will be able to start your dropshipping business in no time. You can also only focus on the sales part, and leave all the rest to the manufacturers and distributors. And one of the best parts of dropshipping is that you can run this type of business from anywhere in the whole planet with an internet connection.
Unfortunately, not everything is perfect in this type of business. One of the biggest drawbacks is that, if anything goes wrong with the shipping or the product, your clients will most probably hold you responsible for that. The same happens if your distributors run out of stock. Clients who are not acquainted with dropshipping may ask you to restock, while there is not much you can actually do. What is more, nowadays there is much competition in this field and so, in order to have competitive prices, you will have to sacrifice a bit of your revenue by selling your products as cheap as you can.
If after knowing all this you still think you would like to make a living with this business model, you should just take the plunge and do it. Though challenging, having a dropshipping business is a great way to reach success.0 Comments