Drop-shipping is an online business model that allows a person to operate some type of online store front (a web page, blog, app, or social media) to sell products without stocking or having those products in an inventory of some kind. The drop shipper advertises a product, usually through a digital photo or video, receives an order from a customer, and then the drop shipper has the order sent to the customer directly from the supplier.
It is a simple online business model and it has helped many ordinary people build successful online businesses that they can operate from the comfort of their home or just about anywhere else. Here are 10 reasons you should consider drop shipping to produce an income for yourself.
Reason #1 Easy startup because of low costs
Getting started is relatively easy and inexpensive. There are many platforms that available for you to use and literally 1000s of products to choose from. Many drop shipping platforms offer many name brand products and will help you to determine the “hot products” to market to your customers. The great thing about drop shipping is the relatively low cost to get started. You need an online platform (this is most of the additional cost to start), a smartphone or computer, an internet connection, some apps to help automate the process, and some wholesale suppliers. Most costs are things you already pay for.
Reason # 2 No need to keep stock, inventory, or a warehouse. You can focus on selling and not carrying product.
One of the major costs and investments when starting a new business is the purchase of products to sell and the costs for storing those products until they are sold. This is where many businesses apply for loans or seek additional income sources just to start and maintain the business. With drop shipping, you need an image/ digital picture and a way for your customers to view the image usually through a website, blog, app, or social media. The need for a warehouse is nonexistent. Your focus isn’t keeping up with inventory instead it is selling the product through online means. Furthermore, you can sell a variety of products and expand your business as you see fit.
Reason # 3 You can be your own boss and work from wherever you want.
You are the captain of your own ship and you decide where it goes. There are no commutes, no annoying co-workers, and anything else that comes from working for other people. The internet is worldwide and so you decide where you work. This is a real plus if you like to travel.
Reason # 4 You have an opportunity to build your own brand due to lack of trust with big name companies
You can build a business on your own personal brand so if a certain product loses its appeal, you can have the flexibility of selling something different. You can focus on building brand loyalty and a committed customer base from which a business can thrive for the long term. Furthermore, big companies such Walmart, Target, Sears, etc… have had their share of negative press which creates the perfect opportunities for drop shippers especially those focused on certain niches. As an individual drop shipper, you can build customer loyalty and trust with people who have had a bad experience with the large retailers.
Reason # 5 Many easy to use tools are available to help build your business
Drop shipping is a great business model and since it has been around for a couple of decades, there are many tools available to help automate and make the drop shipping experience easy to manage even for someone with very little experience doing it. Software and tools exist to help drop shippers communicate with customers, get inventory updates of the items they are selling, assist in the order cycle, assist with various aspects of customer service, and tools to help with website or online presence to help sell product.
Reason # 6 Overall low running costs creates more opportunity and options
In addition to no warehouse, there is no need to rent office space or a physical store. There is no need to hire staff or take on employer costs. The upkeep and running costs remain low throughout the course of maintaining the business. You can drop ship from the comfort of your home using a smartphone, tablet, or computer. You may need to invest in a website or blog, but these costs are very low compared to a traditional business.
Reason # 7 Due to the increase in smartphone use and social media: traditional brick and mortar business are declining, and the online marketplace is growing.
People are already buying products online with Amazon and eBay. Big retailers have really begun to enter the online marketplace as well. You can take advantage of this by establishing your own online presence and sell to people that are looking for a place to get genuine online customer support and service. Online sales growth has been steadily increasing year to year and the traditional brick and mortar stores are going the way of the dinosaur. With more people using their smartphones and utilizing social media to find products and services, this creates many opportunities to enter the online marketplace and create a profitable niche for any drop shipper willing to put in the work to do so.
Reason # 8 Due to reductions in delivery times, more people prefer to shop online.
The marketplace has changed, and delivery times are very short. This is one of the reasons that people are shopping online, and it creates a very profitable opportunity for drop shipping. More than half of consumers are now buying all types of products online and it continues to grow. Anything and everything are now bought and sold online. People like the convince online shopping provides and savvy drop shippers are taking advantage of this.
Reason # 9 Many opportunities to offer a variety of products and automate the whole process.
With a basic online store front and a drop shipping automation app, the variety and number of products available to sell online is endless. Automation is readily available to almost anyone who wants to drop ship. There are ways to automate order fulfillment, packing and shipping. There are apps and ways to even automate your online storefront, website, blog, or social media presence to increase sales effectively and efficiently.
Reason # 10 The opportunity to scale your business as large as you want it.
Millions of products are available for drop shippers to sell. Yes, I said millions!!! This creates a scalability that has never been seen in the history of the world. For all the previous reasons already stated, the sky isn’t even the limit when it comes to successful drop shipping. If fact, a simple Google search will produce success stories of drop shippers making lots of money and succeeding with this business model. It can be done, it is being done, and you can do it too if you decide drop shipping is for you.
Drop-shipping is simple, and it is worth pursuing because of all the reasons stated in this post. However, it isn’t easy and does require some specialized knowledge. If it were easy, everyone would do it and if it were too difficult no one would do it. Is drop shipping for you? Only you can answer that. If you think it might be for you, but you are not sure where to start then check out Zero UP by Fred Lam, you will be glad you did.
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