Drop shipping is the Next Big Thing
5 Reasons Why You Should Put Up a Drop shipping Business
Drop shipping is a product-sourcing eCommerce business where you, as the retailer, aren’t required to actually own and store the products up for sale. Instead, you act as a third party when consumers place their orders on your site. You might ask, why choose drop shipping when you can ditch the seemingly complicated process and do direct selling instead? The answer? It’ll earn you really good profit margins. If you’re still unconvinced, we’ve listed down five reasons why you should put up a drop shipping business.
There are low barriers to entry if you’re interested in this particular industry. With the right business partners and connections, you can start your drop shipping business within three weeks! Although we say it’s easy, drop shipping, like any other business, needs your commitment to be successful. Once you’ve created a winning mindset and you’re ready to take on this venture long-term, it’s time to begin the process.
The Drop shipping Process
Drop shipping gives you the option of having a broad library of product selections because again, you don’t need to keep your stocks on your shelves and risk them depreciating once a sale is not made. This gives your prospects and customers more shopping choices as well, and you have the distinct advantage of being able to cater to markets that less prioritized and satisfied.
There’s also the question: what’s the point of being a middleman in the process when you can directly be the actual online store that delivers to its customers? The answer is simple: being in the drop shipping business means you incur fewer risks in the event your supposed evergreen item doesn’t end up selling as hotly as you expect it to in the digital marketplace.
The drop shipping process begins when the customers reach your site and place their orders. You then accept their payment and forward said orders to the drop shipping company, who will then start taking over of the packing of the products and delivering them to the shoppers’ doorsteps. Your work ends the moment you pay off the drop shipper the cost of their items, but how do you make this system work for you considering there are more parties involved than an ordinary direct selling process?
The main upper hand of drop shipping is the convenience of not having to keep an inventory of the items you’re putting out on the market. This is only possible if you are able to make a partnership with a reliable seller who offers excellent quality items and can package and ship parcels in a very efficient manner. Otherwise, you risk having customers who will not be interested in repeat purchases, and even the possibility of negative feedback, which will deter prospects. Look for a supplier who can offer several modes of payment, and even better, can give free shipping.
You’ll need a medium for you to showcase your products, and make a way for your customers to get in touch with you. You can either display items through known channels like eBay and Amazon or opt to have a website made. Dropshipping through existing companies will help you with easy traffic-generation, but it comes with bigger expenses. On the other hand, creating your own website is ideal for branding and trying to segregate your products from the hundreds of sellers, but you’ll have a harder time driving traffic to your site, than if you chose the first option. Either way, once you get the hang of your chosen platform, you’ll have less issues with lead generation and conversion.
2. Startup costs are lower
Unlike traditional brick-and-mortar stores that require substantial initial capital to start the business and keep it running, eCommerce doesn’t need a physical location to operate. Overhead costs, which are necessary expenses for physical selling entities and some online stores are close to non-existent for drop shipping companies.
Drop shipping businesses enjoy the benefit of not housing inventory, and therefore, face less risk of sales lost on products with the tendency to lose value over time and less sellable items. The general spending involved with setting up a drop shipping trade are hosting fees and advertising expenses--both are meant to create leads, conversions, and purchases.
3. You can enjoy the convenience of working from home
The reason why many people turn to creating online shops is that you can operate it anywhere there is a steady internet connection. There’s nothing more liberating than running your business in PJs, and earning thousands of dollars a month while you’re at it. When you devote to your dropshipping full-time by rendering around 40 hours a week, your level of comfort becomes necessary for efficient managing of your site and implementing of marketing strategies, as well as maintaining good customer relations.
4. You can create a Unique Selling Proposition for your products
This works better if you choose to put up your own website, but you are given the opportunity to advertise your products in a way that will allow them to stand out among the sea of similar items floating around Amazon. This way, you create a sense of “premium” for the products, which will give you leeway to charge higher price tags, and subsequently, earn more.
5. You can hit jackpot
The sweetest reward for establishing a business that turns out to be successful has to be the payslip you get every two weeks. Like any business engagement, drop shipping needs your investment--time, money, effort. But once you find the right markets to serve with the right products and the right marketing strategies, you should enjoy regularly generous revenues.
Get Started Now
Business enthusiasts all over the internet are steadily turning to drop shipping in order to earn heftily in the online marketplace. There’s no reason for you to hold back on succeeding as well. Start now, read our other articles on drop shipping, follow our experienced instructions and happy hustling!