Droshipping is another way to earn money working from home.
So your asking yourself, what is dropshipping and is it for me? Lets look at the pros and cons of having a dropshipping business.
The process is fairly simple. You as a retailer will find products to market, then set up your website to sell the products. Receive your customer orders and process. Place your and order with your supplier. Your suppler ships the order to your customer.
As you can see, this is what makes dropshipping so popular. This is just a basic outline of what dropshipping is and there are many small steps needed to be taken as well, but I just wanted to touch on the major points here.
Pros Of Dropshipping
No Inventory – this is probably the biggest factor as to why people start dropshipping business. You won’t need to stock thousands of dollars in inventory!
Just think about this. What if your supplier carried 1000’s of sku’s. Would you be able to afford to stock all these or even some of them? Maybe, but probably not.
No Warehouse – if you don’t have inventory to worry about, then you won’t need storage or a warehouse. All your orders are shipped from your suppliers warehouse instead.
No Returns – no need to worry about returns. The supplier will handle them if needed.
Running a dropshipping business can be done from just about anywhere with a laptop computer and printer. There are people successfully doing it from their apartments, garages or while traveling. It is possible to do without actually being tied down to one location.
As your business grows you scale it up easily by outsourcing some of the daily work to others, such as adding products, tweeking descriptions, PPC campigns and more. Saving yourself time, so you can grow the business.
Before you start getting all excited thinking that this is everything you have been looking for in a business model, lets go over some of the the disadvantages.
Cons Of Dropshipping
Margins – low margins is the one of the problems with the dropshipping business model. You won’t make as much on the products your selling because of the competition. You have to remember all the other people that started their dropshipping business for the same reasons you did.
Inventory Probblems – nothing is more frustrating than getting an order on your website, only to find out that your supplier doesn’t have it in stock! Plus you may not get a accurate answer from your supplier as to when the product would be back in stock. Guess what happens to your customer. They cancel their order with you and buy from another merchant that has it.
Shipping – a common problem among dropshippers is that they use more than one supplier for different products on their website. What happens is a customer will order a few different items and each item may come from a different supplier. That could mean 3 different shipping charges for the dropshipper! It is possible to take a loss on an order like this because of this scenario.
Supplier Errors – your suppliers aren’t always going to be 100% accurate in the information that they provide to you. A problem occurs when you pass this inaccurate information onto your customer by way of your website. It could be the wrong price (too low) or a description of the product that is not correct.
Another supplier problem that I have run into is when they ship your product to the wrong address and your custoer never receives their order. Or maybe they ship the wrong product all together.
So in conclusion, dropshipping is just like any other business. It has its pros and cons. Only you can decide if it fits what you are looking for in an online business.
Are You Interested In A Business With No Inventory, No Returns & FREE To Start?
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