More people today are interested in starting an online business than ever before. An online business owner becomes free from employers and never has to deal with a boss again. Online business owners are also able to run their businesses from anywhere in the world. This freedom gives online business owners much more opportunity to travel than the vast majority of other people.
Today we are going to talk about the dropshipping model in respect to ecommerce. It’s a business many young entrepreneurs aspire to get into and have made a very good income with.
Those who are interested in starting an online business often consider dropshipping. Running a dropshipping business does not require any very uncommon skills and can, therefore, be learned and attempted by an ordinary person. No one thinks of dropshipping as a get rich quick scheme. Dropshipping is a legitimate business opportunity that takes effort and requires a competitive spirit. If one is considering dropshipping, they should carefully evaluate the pros and cons of starting a dropshipping business beforehand.
Pro – The basics are easy
Creating an online store does not even require any web design skills to do. One can use an e-commerce platform such as Shopify to establish their online store very quickly. With the Shopify platform, one can simply modify a default template to create a functioning online store with the appearance and products one prefers. Shopify will do the payment processing for you, so there is no programming skill required to create an online shop.
Pro – No dealing with the products you sell yourself
Dropshipping, by definition, never involves ordering products, having them shipped to your residence, and sending them to customers. Shopify or any other e-commerce platform will handle all of the shipping for you. All one does is market products. If one can create an attractive website that customers will buy products from, then one simply earns money from each sale.
Con – You do not have a unique product
If one owns a large business that manufactures products themselves, then they can have a unique product. Their product may be superior in quality or price to similar products. With dropshipping, there is no possibility of selling a product that is superior to that sold by other people in the dropshipping business. If one manages to find an excellent product to sell, other people are sure to sell it as well.
Con – Your supplier might go out of business
A person who sets up a successful dropshipping business can quickly lose it if the manufacturer of the product they are selling goes out of business. While any company is vulnerable to changes in the market, this is more true for dropshipping than for other business models.
Pro – It costs nothing to begin
More than anything else, this is the appeal of dropshipping. One does not already have to be rich to start a dropshipping business. One does not even need a savings account to be selling products online. While it may take time to create a distinctive store that can sell products, there is no financial risk. Quitting one’s job to start a business is a dramatic decision that may end in disaster.
However, one can start a dropshipping business in their spare time without leaving their jobs. One can make side income at first, then increase their profits to the point where they can quit their day jobs. Just be sure you get some good course reviews prior to spending money on any course. There’s some good and bad ones out there – arm yourself.
More than anything else, dropshipping is about marketing. Dropshipping is an online sales job. Running a traditional business requires a broader set of skills than running a dropshipping business. If one can successfully create and promote a website that convinces customers to buy products, then they can succeed.
Dropshipping will put you up against plenty of competitors, many of which are selling the same product. However, a talented marketer can still make a great deal of money in dropshipping. Dropshipping is a real business opportunity, and other than the loss of time, one has nothing to lose by trying.
Here’s a good video by John Santos on the pros and cons – a different outlook: