An Introduction To Drop Shipping
The global ecommerce market is only expected to carry on being an extremely profitable industry in today’s digital age where more people are being drawn in by the convenience of online shops. If you’re a budding entrepreneur who has paid notice to the vast potential in ecommerce, then you have probably played with the idea of starting an online venture by opening your very own online shop.
Traditionally, opening a shop would have required you to manage a brick-and-mortar storefront. You would have had to worry about inventory, rent, and the finances needed to buy your products. Entrepreneurs today are breaking away from this traditional model of commerce and opting to enjoy the advantages of launching an online drop shipping business, which eliminates the need for hefty capital investments, large overhead costs, and the need for an inventory of goods. All you’ll ever really need in drop shipping is your computer.
We’ll let you know what drop shipping is about, tell you why it’s great for you, and maybe even get you started on your own highly profitable drop shipping business venture in no time at all.
1. WHAT IS DROP SHIPPING?
Simply put, people who are in drop shipping are essentially selling products that they don’t actually own. As a seller, you will be marketing products on your online store that belong to a third party supplier. You’ll never have to see or handle the products that you sell.
When someone buys a product on your site, the order will be forwarded to your supplier who will then process these order from your shop and delivers their products directly to your clients. You’ll be able to be in control of the profit margin by setting the retail price for all the items that you are displaying on your shop. As a seller, you will never be troubled by the tasks of purchasing goods, handling inventory, and shipping. All you need to do is to focus your energy in growing your business by marketing products on your shop and making those sales.
Below are six reasons why visionaries are favoring drop shipping and why you yourself should consider starting your own drop shipping venture.
2. GETTING STARTED EASY
Drop shipping can be for anyone, from seasoned entrepreneurs to those who have no prior business experience. Drop shipping is easy because it is a business model that requires very little from you. It’s a method that poses minimal risks, requires little capital, and happens to be full of opportunities and business advantages."
You can forget about managing and paying a warehouse, tracking your inventory for accounting, and continually ordering new products to maintain your stock of goods. Your supplier will take care of inventory and shipping for you.
The most appealing aspect to drop shipping is that you can build your online shop from anywhere in the world, at any time. Ecommerce platforms like Shopify make opening and managing an online store even easier, making it possible for you to actually start building your online shop right now and start drop shipping within a day.
3. LOW ENTRY BARRIER AND MINIMAL OVERHEAD COST
The issue of financial restrictions will have no hold on your ambition of opening an online shop with drop shipping. You will never be burdened by the worry of spending money to make purchases of products that may never sell, or pay for a warehouse to store these products in. With drop shipping, you don’t need a lot of money to start and you will be able to carry on managing your business with minimal overhead cost. Because drop shipping requires little investment to get your business started and to keep it running, this should keep you at ease by remove the worry of the financial risk from your mind.
4. EASY TO SCALE
Drop shipping is a business model that will easily support your growth. As you scale up and experience the growth of your business, your operating cost should stay the same. Unlike traditional business models, where you have to put down more money and work as your business grows, drop shipping allows you to scale with the same monthly expenses as when you first started out. All of the additional orders from you clients will be shouldered by your suppliers. You’ll be able to continue working on your sales and on your marketing campaign while you enjoy the benefits of the upscale without the worry of additional cost.
5. EASY TO MANAGE
Drop shipping is something that is easy enough for you to manage by yourself. Once you have figured out what you want to sell, acquired your suppliers, and have an expertly set up and running online shop, you could market your products and run your shop singlehandedly. As you grow, you might want to assemble your own team to manage your shop, although this is not strictly necessary. Drop shipping could easily be handled by an individual. If you want to be your own boss, then drop shipping is just the thing for you.
6. FLEXIBILITY AND CONVENIENT
If you have been dreaming of being able to live and work from anywhere in the world, drop shipping may be the answer to your goals in obtaining financial freedom. Many digital nomads are turning to building their careers in ecommerce and drop shipping to untether themselves in ways that traditional business models and shops can never provide. This is a business venture that you can operate from any geographical location with internet connection, literally enabling you to do business anytime and anywhere. You can operate in the comfort of your own home or on the go.
7. EXCELLENT SIDE HUSTLE
Because of its flexibility, drop shipping need not necessarily take up all of your time and interfere with things like a fulltime job, school, and other priorities. You won’t need to put too many hours on your online shop every day. One or two hours daily should suffice because your online shop should basically do much of the work for you. It’s the perfect side hustle for you to earn extra income and it’s flexible enough to allow you to venture out into other things. Like we said, drop shipping could potentially be for anyone and everyone, from seasoned entrepreneurs who are looking to build an enterprise in ecommerce, to college students looking to start an online shop to get extra income.
IT'S TIME TO SET UP YOUR SHOP
With today’s vast online market, there is no limit to the possibilities and opportunities that could arise from running your very own online store. If you’re still undecided and have questions on how and where to start your online business, Contact Ecommerce Pro and we’ll talk about your ideas.
The E-Commerce Checklist
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