What is dropshipping

Dropshipping is another business opportunity alternative to blogging.  If you are into online marketing,  you must heard about various e-commerce website rising from time to time and they are mostly a dropshipping business.

The dropshipping business started become popular in 2006 when AliExpress became popular in the United States. At that time many people still didn't knew about dropshipping  but some smart entrprenuers took the lead and created a store to make profit. They use AliExpress because of its low prices that no one can beat.

Today, dropshipping has highly profitable e-commerce business opportunities that can be started in just a minimal investment. I know you want to learn more about dropshipping, let's go and learn the basics.

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What Is Drop shipping For Starters

For beginners dropshipping is a supply chain management model where retailers for example YOU don't have to worry about managing inventories, you only need to focus in finding a way how to sell the products effectively. 

Dropshipping are likely as a intermediaries suppliers and customers, dropshippers transfer the order information to supplier after dropshipper's customers made a purchase to dropshipper's store. Dropshipper makes profit by putting increase percentage base on the supplier's cheap price. 

The Benefit Of Dropshipping

Dropshipping is a highly lucrative business opportunity for aspiring entrprenuer who wants to make profit online.  The good thing is that anyone can enter this kind of business. 

Here's  a list of benefits of dropshipping:

Can Start In Minimum Capital

To start a dropshipping business, you need to have a website to establish a store online, if you don't know how to make an online store for dropshipping, you can study more about Shopify or Alidropship Plugin. 

You Don't Need To Problem Packaging and Shipping

With dripshipping the owner do not need to worry about shipping and packaging of the product, it's the supplier problem how to do it for you. 

Easy For Dropshipper to Change Product Niche

As a dropshipper,  you don't need require storage facility and are completely digital that is why it is easy to scale. If your product niche that you previously choose is not selling,  you can easily change your products list on your store. 

Risk is Minimum

Comparing in starting a physical store in your town, starting a dropshipping website is 5x to 25x more cheaper if we are talking about annual expenses from rent and employee salary. In dropshipping you only need a website and check your orders from time to time. 

The Disadvantages Of Dropshipping

Every kind of business has their own disadvantages and dropshipping has it too! Considering the benefits of dropshipping you can just ignore these advantages but it's better to know than never. 

Disadvantages of Dropshipping:

High Competition

Every opportunity where theres hot always ends up with competition even looking for a job has also competition,  new online store pop up every other day,  so you need to pick a product that will fit to your marketing strategy. 

Dropshipping Has Lower Margins

Most dropshippers ends up giving up because of the profit margins are too low, however if you look closely at it, dropshipping is not a short term business. It's all about staying in the game, a marathon and moving up the ladder one step at a time. 

You Have Liability of Product Failure

Dropshipping is one business where you will be selling a product that you haven't actually seen, therefore, chances of products defect are high. When that happens the whole responsibility in returning the actual amount of money to the customer and returning the product to your supplier is you. 

Managing Orders Can Be Exhausting 

There will be some time that your product will go viral,there are time that you will have hundreds of orders that you need to monitor to make shipping happen. 

Hope you have learn many things from this post. If you have any doubts when reading this post, feel free to leave comment and I will be happy to give you my response. Thank you for having time reading my post and good luck!