Even though dropshipping isn’t a very new concept and people have been doing it for years, a lot of people still don’t have a very good idea about what it actually is. Since the online world of retail is incredibly overwhelmed nowadays, people are looking for new way to sell online, and a lot of the times dropshipping is the way to go for them.
This is the perfect solution for business owners that don’t want to spend their time worrying about which products they have in stock, how much they have left, how to deal with storing the products and how to ship them.
So, if this is something that sounds interesting to you and you are willing to learn more about it and maybe even give it a shot, then make sure to keep reading and we will be talking about what is dropshipping defined and about some of the benefits and downside that you need to keep in mind.
The Definition of Dropshipping
Before we get into any of the other parts of this article, we have to start by taking a look at the basics of dropshipping and what it actually is. This is very different from having an online ecommerce because when you have that you have to have your own stock, a warehouse and everything else that comes with owning a business.
Dropshipping is a kind of fulfillment method of retail where you don’t keep any of the products that you sell in stock, and instead you purchase these items from a different retailer or a wholesaler. Once you start getting orders, the best part is that you don’t even have to deal with the shipping portion of the process.
You will simply have to redirect the order and have the supplier take care of getting the order to the final customer.
With this method you, as the dropshipper, never actually see or have to deal with the products themselves. The biggest difference between dropshipping and the standard way of retail is that dropshipping does not require owning any of the stock.
The Advantages and Disadvantages of Dropshipping Business
Like every method out there, dropshipping businesses have their own pros and cons and it is important for you to really consider them before you settle down for this method, because after all starting any kind of business is a huge deal. Definitely the biggest benefit to dropshipping is the fact that you need a lot less capital in order to launch your business when compared to a traditional eCommerce business.
Of course, this benefit comes largely because of the fact that you have no inventory to buy, so you don’t have to invest anything upfront. Another pretty great benefit is that you are actually able to start selling very easily. Running a business is definitely much easier when you don’t have to deal with things like paying for a warehouse and the inventory, packing and shipping the orders, handling returns or doing any kind of inventory or warehouse management.
These things take a huge toll on business owners, both mentally and economically, so it’s good when you don’t have to deal with them. You can also run this business from your couch if you want to, because as long as you have an internet connection, you have everything you need to run your business.
However, there are also some downsides to dropshipping, and probably the biggest one is the low margins. Starting out is very easy, as we already mentioned, and because of that a lot of people have to set their prices incredibly low in order to get on the map. This means that it can be a while before you actually start making some good profits. Another thing that you will have to deal with is the fact that you are working with other suppliers, and in a way you actually depend on them.
This means that if there is a delay with getting the products to the customer, you have no control over it, but you will still get the blame for it, which can be tough to deal with for some people.
Why should you think about starting a dropshipping website – Today!
This may seem like it belongs to the advantages section of this guide, however, this is something that is true about this method. There are several reasons why you should start thinking about why starting a dropshipping is good and get ready to gather all the information for your first dropshipping store.
The truth is, you are able to start your business in no time and there is no big fuss about it.
You just need to create an eCommerce website and you are good to go. It is also very low-risk, which is always a great thing, and something that cannot be said about other types of businesses. You invest little or no capital upfront, so there isn’t much to lose. The last thing that makes a dropshipping business worth it is the fact that you don’t have to do a lot of work because most of the work is done by the suppliers, so you can easily do it even if you have another job. This is a great way to support yourself until this business really kicks off.
So overall, we learned what the dropshipping business is about and that it doesn’t require a lot of work to get it started. Stay tuned with our blog and we`ll share a lot of articles regarding dropshipping and how to get a profitable dropshipping webite. We hope that this article helped you to understand dropshipping basics will have an easier time with dropshipping after reading it.