Many e-commerce businesses today use dropshipping as their business model. Hundreds of start-ups today also use dropshipping to kickstart their businesses with the hope of becoming the next Amazon. Simply put, dropshipping allows you to sell products to consumers without an in-house inventory, or shipping responsibilities.
Buyers would come to your site, pick and buy a product, and the supplier then takes it from there. The supplier takes in the order and ships the product directly to the buyer. According to Forbes, dropshipping is one option for you to start an online store with almost zero investment. Dropshipping isn’t easy, but it’s also not as difficult as others might think.
Low startup cost
Reports show that 82% of businesses crash and burn because of cash flow issues. Funding is one of the biggest challenges to any business. This particular challenge is almost nonexistent in dropshipping. You don’t need much with a dropshipping site. A platform, a pc or smartphone internet connection, automation apps, and supplier directory are everything you need to set up your dropshipping business.
No stock and inventory needed
Stocks and inventory are some of the most significant retail business investments. Others make bank loans to support even small start-up retail to buy supplies and get merchandise. Dropshipping doesn’t need physical stock in your storage. You don’t need storage in the first place. You need product images on your website, very much like an online catalog, and you’re good to go.
Dropshipping – Anytime, anywhere
A dropshipping business allows you to run the business everywhere as long as there’s an internet connection. You can work at home or while on vacation. It also allows you to address issues in orders regardless of size, even when you’re not in your home office.
Grow the business as you go
A dropshipping business is a scalable business model. You can start with next to little money and grow the business bit by bit as the cash starts to come in. You can add more products as you go. When you have the desired consistent traffic on your site, you can start increasing your volume and product list. Another downside is that you can downscale the business with the traffic, minimizing the risks. The scalability it offers enables you to be flexible on your growth.
With health issues and others, more and more people stay indoors and are more glued to their gadgets and devices more than ever. That aside, people find comfort in shopping and doing their groceries online instead of going to actual stores. Dropshipping rides the tides when it comes to online purchasing.
Through dropshipping, you can get various products and enter new markets while keeping your brand identity. You have the reigns of the products to sell and pick only those that relate to your business values. Despite all of the pros to starting a dropshipping business, it’s important to understand all the facts surrounding an industry. Check out our article that explains the cons of dropshipping.