WHAT IS DROPSHIPPING?
If you’re seeking an online business opportunity, chances are that you’ve come across dropshipping. Dropshipping is an online business model that can generate high returns for the aspiring ecommerce entrepreneur. It’s possible to start dropshipping with a small amount of startup capital and some sweat equity. Once you begin to see success, you can scale by allocating more resources to advertising and brand building. But how does dropshipping work, and why should you go for this model to realize your entrepreneurial dream?
Before we get any further, it’s important that you have an answer to the question ‘what is dropshipping?’
What is Dropshipping?
Dropshipping is a type of retail fulfillment method for online stores, where instead of warehousing inventory, merchants purchase products from third-party suppliers as customers make orders. The products are then shipped directly to the consumer. This way, the seller doesn’t have to handle the product directly. Sound familiar?
For the retail store manager, when it comes to shipping and order fulfillment, this is a mostly hands-off process. The merchant doesn’t have to stock products, order inventory in bulk, or physically fulfill the orders in any way. Instead, the third-party supplier will ship products on the merchant’s behalf.
Dropshipping is great for entrepreneurs because running a store doesn’t demand as much operational capital as the traditional retail model. You don’t have to open a brick-and-mortar store, hire employees, keep the lights on, pay overhead, or stock products.
Benefits of Dropshipping
1. A dropshipping business is easy to set up
You don’t need prior business experience to get started with dropshipping. If you take some time to learn the basics, you can launch a business quickly and learn the rest as you go.
It's easy to start a dropshipping business because start-up costs are low -- especially when compared to other types of retail business models. For instance, you don't need a warehouse to store products
or a team to help you out. You also don’t have to worry about stocking or shipping either. It’s surprisingly hands-off, especially once you get going.
All of this means that you can start your business today. In fact, you can get everything up and running within a matter of hours.
You will need some foundational knowledge and the right tools and resources, and that’s why we created this guide. By the time you’ve finished it, you’ll be equipped with the knowledge you need to jumpstart your own dropshipping business.
2. Dropshipping is scalable
As you scale up, your business model doesn’t have to change very much at all. You’ll have to put more work into sales and marketing as you grow, but your day-to-day will stay more or less the same aside from processing more orders.
One of the benefits of dropshipping is that the infrastructure costs don’t skyrocket when you scale. Because of this, you’re left with more to allocate to the marketing side of your business. The more you focus on promoting your business and delivering great customer experiences, the better off you’ll be.
3. Dropshipping doesn’t require an office
You can run an entire business right from your laptop, and you don’t need to make any high-level investments. Your largest expense will be advertising, which is a budget you can scale as your store gains more traction. Even as your business grows, your costs will be fairly low – especially when compared to traditional business expenses.
4. Dropshipping is flexible
You can work from home with little more than a laptop, and you can work at the times that are most convenient for you. This is ideal for entrepreneurs who want a business that works for them. You won’t have to bend over backward to get things done. Instead, you set your own pace.
Dropshipping is also flexible in that it gives you a lot of room to make decisions that work for you. You can easily list new products whenever you want, and you can adjust your strategies on the fly.