All of us have at one point entertained the thought of starting a business. We all have passions, ideas, and aspirations that we would like to bring to light and monetize. Can you think of a few business ideas you have had in the past? Have you done anything to achieve those business aspirations?
Traditionally, starting a business and opening a shop would have required you to manage a brick-and-mortar storefront. You would have had to worry about rent, inventory, and the finances needed to buy products and sustain your store. This is no longer strictly the case.
Today, there is a growing trend among online entrepreneurs who are breaking free and leaving traditional commerce behind in favor of dropshipping. Dropshipping may just be one of the easiest ways of starting a business to date, and it is accessible to absolutely everyone. All you need is your computer and a business idea to get you started.
Whatever you are doing right now, whether you are working full time, studying, or looking to change career paths, dropshipping is perfectly feasible for you. Keep reading and we will let you in on the basics of dropshipping, why it’s great, and we’ll get you started on the direct path to having your very own profitable dropshipping business in no time at all.
Let’s get you started.
What is dropshipping?
If you are a budding entrepreneur who has paid notice to the vast and growing potential of the internet and electronic commerce, then you have probably heard of some of the ways people have been generating money online through something that we know as dropshipping.
The word “dropshipping” in itself gives nothing away to someone who is hearing the term for the first time, so let us break down dropshipping and find out what it means.
Dropshipping is a business model wherein you will be able to operate an online retail business without having to purchase and maintain an inventory of the products you sell.
A dropshipping store operates with the help of a dropshipping supplier or the product manufacturer. When someone buys an item on your site, the order will be forwarded to your supplier who will then process these orders made from your shop.
It is then the role of the supplier to pack and ship the item from their warehouse directly to your client’s doorstep.
The merchant’s role is simply to run the shop, display the products, find buyers, and make a profit. 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 in your shop.
As a seller, you will never be troubled with the tasks of purchasing goods, handling inventory, and shipping. All you need to do is to focus your energy on gaining customers for your business by marketing the products on your online shop and making those sales.
To break it down into even simpler terms, we will look at dropshipping as a 3 part process:
- A customer places an order on your store.
- Your store automatically or manually notifies the dropshipping supplier with the order details.
- Your supplier packs the products from their warehouse and ships it directly to your customer.
As you can see from the dropshippingprocess, dropshipping is extremely accessible to people of all walks of life. This is mainly because this business model eliminates much of the hurdles that come with launching a brick-and-mortar establishment, which will require much of your time, includes large capital investments, large overhead cost, and the need to purchase or manufacture goods that may or may not sell. With dropshipping, you won’t have to worry about any of that.
This makes dropshipping one of the best ways to make money online, especially when you don’t have a lot of money to start or if you don’t want to invest too much of what you have right now.
Now let’s go a little bit deeper into the benefits of dropshipping and why it is a potentially great business venture for you. Below are six reasons why visionaries are favoring dropshipping and why you yourself should consider starting your own dropshipping venture:
1. Getting Started is Easy
Dropshipping is easy because all you will need to start is your computer, internet connection, and some perseverance to build an online store that sells. 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 building or renting out a store, managing and paying a warehouse, and continually ordering new products to maintain your stock of goods.
With dropshipping, your supplier will take care of inventory and shipping for you while you run your online store. Because you won’t need to build a physical store or stock up on products, you can quite literally start building your store today and start selling in about a week or so.
2. Low Entry Barrier, Low Overhead Cost
The issue of financial restrictions will have no hold on your ambition of opening an online shop with dropshipping. 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 dropshipping, 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 dropshipping requires little investment to get your business started and to keep it running, this should keep you at ease by removing the worry of financial risk from your mind. With dropshipping, you will be able to run your business without having to worry about high cost and an increase in future expenses.
3. Easy to Scale
Dropshipping 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 more or less the same, depending on how you want to run your business.
Unlike traditional business models, where you have to put down more money and work as your business starts receiving more orders, dropshipping allows you to scale with about the same monthly expenses and work effort as when you first started because much of the process is automated.
As you get more orders and customers, all of the additional orders and extra work will be shouldered by your suppliers. You’ll be able to continue working on your sales and your marketing campaign while you enjoy the benefits of the upscale without the worry of additional expense and much effort.
4. Easy to Manage
Dropshipping 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. Dropshipping could easily be handled by an individual. If you want to be your own boss, then dropshipping is just the thing for you.
5. Flexible and Convenient
You can start drop shipping from anywhere— from your college dorm room to your home office, even while traveling.
If you have been dreaming of being able to live and work from anywhere in the world, dropshipping may be the answer to that goal. Many digital nomads are also turning to build their careers in eCommerce and dropshipping to untether them in ways that traditional business models and physical shops can never do. This is a business venture that you can operate from any geographical location with an internet connection, literally enabling you to do business anytime and anywhere.
6. Excellent Side Hustle
A side hustle is a way for you to make money outside of your 9 to 5 job, between parenting, or in your free time during the day. Because of its flexibility, dropshipping is one of the best side hustles there is for you to get into from your home, or anywhere else.
The flexibility of dropshipping means that it won’t necessarily interfere with your job, school, and other priorities. You won’t even need to put too many hours on your online shop every day. One or two hours daily should suffice because your online shop should do much of the work for you. It’s a good way to make that extra money on the side, and who doesn’t need a little extra money anyway?
It’s the perfect side hustle for you to earn extra income and it is flexible enough to allow you to venture out into other things.
Is dropshipping for you?
The short answer is: Yes, for sure. There is no reason why dropshipping should not be for you, too. Dropshipping is one of the most easily accessible businesses out there that you can start today, and you don’t have to have a business degree to do it.
Dropshipping is a business model that 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 that extra income. It is also perfect for those who want to make more money outside of their 9 to 5, or for stay at home parents who want to start a business and spend more time with their families.
Ultimately, the goal in dropshipping is to create a successful online store that is both sustainable and profitable enough to generate the revenue that will make a difference in your life.
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