Dropshipping Is a way to sell products that don’t have to be in your stock. Instead, each time You have a new order in your store, you fulfill the order from a third party, A seller that have the stock and will ship the product to your customer.
The main advantage in dropshipping is that you don’t need to hold inventory. You buy only after a sale has been done in your store.
- You pay for products only after someone placed an order at your store.
Uploading products to your store is free, you don’t need to have any of the products in your stock. The products are held by the third party. Once your customer places the order, you order the same product for less price from your seller.
- You don’t have to spend thousands of dollars to buy stock. Every offline store will need to spend thousends off dollars on buying his first stock. With dropshipping you don’t have to have any stock.
- Low cost to open a successful online store. The first investment in your store can be around 50$-100$ for the domain and building your site.
- Easy to handle the store once you don’t have inventory. Everything is virtual, You sit at your house and you have a store with hundreds of products that you don’t even saw them fiscally.
- Manage your business from your home with a laptop. ” The internet Life Style” All your business is managed from your laptop.
- You can run the business from anywhere in the word. You can travel around the world and have your business with you without worries if your employees taking care of your business or not.
- Have wide range of products in your store. You can upload to your store any products you desire. There is no limit for the products you can have.
- It’s important to choose the right niche where you can have enough margins. In case you choose a competitive niche where you can’t sell with 100% margin, you will need to sell a lot of products to have a proper profit.
- Some of the suppliers don’t have a good customer service and if you have a customer that wants to return a product you will need to refund him the money and then to ask a refund from your seller that wont be available all the time.
- The stock is out of your control. Sometimes the seller won’t have in stock the product you just sold and then you will need to start searching the product from other sellers.
- Sometimes you will have customers that will order 3 items from your store. Those 3 items are available from separate suppliers. Now you will need to pay 3 times for the shipping cost and your customer will get 3 different packages and probably not at the same time.
Creating a dropshipping business can be very profitable and yet there will be many obstacles.
In any business the first months, year brings many challenges. The main advantage in dropshipping business is the low cost entry.
You can create your store, run with it for a 3-6 months and then if you see that it’s not profitable you can close your store and start a new one.
It’s very important to keep learning and improving your skills, never give up because if someone done it before you and succeed, you can be successful as well.