Benefits of Starting a Drop Shipping Business
Categories: E Commerce Business Advice
The Benefits of Starting a Drop Shipping Business
Drop shipping is becoming more and more popular in the e-Commerce industry. It refers to a type of supply chain management of order fulfillment. Its primary difference with traditional business is that it does not keep an inventory of its own.
For drop shipping, the inventory is kept by the manufacturer. Once a customer orders a specific product, the manufacturer is notified and ships the products directly to the ones who purchased it.
If you are in the fence of whether starting a drop shipping business or not, here are some benefits of it that might help you make your decisions:
A Low Risk and Low Effort Business
There is this notion that to start a business; you need to have an insane amount of capital to get started. However, with drop shipping, that notion cannot be farther than the truth.
Drop shipping is a type of business that has little to no risk. This is because, as a drop shipper, you will not shoulder the cost of manufacturing products. You also do not need to buy any inventory to resell. Additionally, there is no need to rent spaces such as offices and warehouses to get the business up and running. It is even possible to run a drop shipping business entirely on your own.
Aside from that, if you open a drop shipping business and it does not succeed, you do not lose your reputation and money, unlike when you start traditional companies. This means that you can try again in a different niche and maybe find your success there.
The most significant investment that you have to give in starting a drop shipping business is your time. You need to invest time and patience in connecting manufactures and customers. You also have to spend time searching for products and making products attractive to consumers.
However, another good thing that makes drop shipping a low effort business is because there are plenty of technological tools that make its management a lot easier. For example, you could use PoSimplify. PoSimplify is a drop shipping software that enables you to streamline order tracking, POs inventory, and sending orders. It is easy to use, and everything you will need is its most uncomplicated form, so even beginner drop shippers will not have issues navigating its functions.
Thousands of Opportunities Available
The drop shipping business model has plenty of untapped potentials that have yet to be discovered. There are several vacant niches that you can occupy in this business model, thanks to the rapidly developing technologies and automation.
There are plenty of drop shipping platforms that will allow you to search and choose suppliers with millions of items to choose from. Aside from that, some manufacturers will allow you to send your tags so that you can make your products unique to your brand.
You can create a successful drop shipping business that is both competitive and satisfying for customers' needs along with a well-designed store and the right types of products.
No Warehouse Stock Needed
One of the highest costs of any business is its inventory and warehouse facility cost. This is why the drop shipping model has been developed to answer the burden brought with warehouse stocks.
As mentioned above, you do not need to buy the bulk inventory to resell as all you need to do is forward your orders and customer's address to the manufacturer, and a third-party logistics company will take care of its shipping. This is why no warehouse stock is needed.
You may wonder how you will be able to assure quality and whether the product reaches your customers, right? If that is the case, you should know that there are necessary protocols involved in case such events happen. For example, if your customer receives a damaged or incomplete order, you can provide a refund or a chance to redo the order.
As a drop shipper, the majority of your task is to ensure that customers are satisfied with the service and the products they receive. This is why if you are planning to enter the industry, studying practical customer service approaches will help you go a long way.
You are Your Own Boss
Do you want to work at home on your pajamas all day? Do you want the beach to be your office? If you do, starting a drop shipping business will allow you to work whenever and wherever you want because you are your boss as long as you have a decent internet connection.
Plenty of drop shippers are living as technological nomads. They travel all over the world and experience things that typical office workers will never do in their life simply because their time is in their hands, and they have a decent income.
You may start to drop shipping as a side hustle, but it can become a full-time gig over time. However, if you feel like doing your drop shipping business on your own is already becoming a challenge, you can enlist the help of drop shipping assistants from anywhere around the world.
Drop shipping utilizes connectivity and the new era of e-Commerce to its fullest advantages. If you decide to engage in it now while there are still vacant opportunities, you will realize how lucky you are to be your boss without the insane risk of gambling your life savings or retirement compensations.
What are you waiting for? Try your luck in starting a drop shipping business as there still a lot of opportunities in it that you can grab. But, before doing so, make sure that you do extensive research so that you wouldn't be diving in headfirst.
Be your own boss and work at your own pace with a drop shipping business in the booming e-Commerce industry. Enjoy a steady stream of decent income as you become more established in the industry. You never know, you might just become the next Jeff Bezos in the next few years to come.