We take pride in presenting an exhaustive and skillfully outlined guide that attempts to assist you to run a successful drop shipping E-Commerce business. Take a look:
By the way, what is drop shipping? Have you ever heard of this term called drop shipping any time before? Go ahead and try out E-Commerce business of drop shipping. We will give you 10-reasons to try drop shipping E-Commerce during the year.
What is Drop Shipping & how does it Work?
Drop shipping is a retail fulfillment E-Commerce business model where the merchant does not maintain inventory or keep stock of products. Instead, when a product is ordered, the store procures the product from a third party and has it shipped to the customer directly. This method entails that the businessman/merchant never handles the shipment.
You first advertise a supplier or manufacturer’s products on your drop shipping site at a markup. Next, you receive customer orders on your website and finally forward them to the supplier to fulfill to customer’s order.
The difference in markup and shipment cost is your profit.
Is Drop Shipping Easy?
Yes and No! It may sound simple, yet a little complex if you think of the overall process. But not really, if one learns the nuances of the whole gamut.
How to get Drop Shipping Started? What All Do I Need?
It is simple and easy; if you have determination. A little research, also loads of courage and fortitude.
We shall delve into this in detail.
Having explored the possibilities of the concept of drop shipping, many entrepreneurs have found it profitable and are enjoying its benefits to the hilt.
For example, reports have indicated that presently Shopify hosts nearly 500,000 online stores in more than 175 countries. Many of these stores are owned by drop shippers, so to say.
One of the frequent questions that pop up is how much does one need in terms of capital investment to start a drop shipping enterprise?
According to reports, more than 82% of businesses fail due to lack of cash flow; which is one of the primary reasons. Startup funding is another area in which entrepreneurs face as a major challenge. However, with drop shipping, this issue is taken care or mitigated to a certain amount.
Here are basic skills/requirements you need to remember for a startup:
These are some of the essential requirements you need to start for drop shipping E-Commerce business.
Nil investment in drop shipping E-Commerce businesses there is no necessity to stock or maintain inventory. Whereas the major investment in running a retail business into buys stock and retain an inventory.
Entrepreneurs running smaller retail stores normally opt for loans or other sources of funding to finance this aspect of their business.
Whereas with drop shipping, all you need is virtually the product image on your website. Stock images can also replace with actual stock.
Besides, you do not own physical stock, so no inventory.
However, In any case, apps help to update your virtual stock and inventory regularly.
Need for a warehouse is eliminated as your supplier already has one or more.
For small time retailers, storage is a major issue but not for drop shippers, this subject does not arise at all.
Drop shipping eliminates the following:
Virtually, you can run your business in space with zero worries about storage space.
Save your office rent by doing drop shipping from home with your PC, Smartphone and tablet.
Save on HR, staff salaries, retirement plan, and staff disputes as you may not need to hire support staff yet, as you are still growing and ready to scale.
Your startup cost is further lowered as most of the ICT infrastructure like PC and internet connection you may, most likely, already be possessing.
With Shopify for instance, you save on E-Commerce website design and also on programming for getting your E-Commerce store running.
The above benefits keep your overheads lowered and in check, so you can invest your funds where it requires the most.
You being the boss of your enterprise, means you are totally responsible for outcomes, which will require your best input anyway.
You are the boss but need not have to share space with any staff members.
Similarly, all the risks and rewards are yours to bear. It is both exciting and challenging to be a sole entrepreneur, but the benefits of running a successful drop shipping E-Commerce business compensates any shortcomings.
A drop shipper can operate from a European country, ship from suppliers in Asia and deliver to customers in the USA only with his PC or lappy!
If you love an independent lifestyle, then drop shipping should be an ideal business opportunity for you.
You can become wanderlust and continue to do your business. This is an advantage to you as during your business travels you can discover new in-demand products for selling that can be added to your website.
Unlimited and infinite! From platform to suppliers to products; all essential aspects of drop shipping- there are plenty of options to choose from…innumerable.
There are also so many niches to pick from. Whether you are interested in toys, toiletries, cutleries, or automobiles, there’s something for everyone.
Meaning, you get an opportunity to experiment with a variety of options that are new to you, as long as they’re viable and have potential based on your research findings.
Generally, for instance, importing a product into your Shopify store can be cumbersome and annoying if done manually. But automation makes drop shipping easier much beyond your imagination.
With automation in place, inventory or pricing mistakes can be prevented; moreover, you save time, money and improve the overall efficiency of your business.
A host of other apps and plugging in the Shopify store are available that extends the functionalities of your e-store.
Drop shipping allows you to sell and ship globally to any locations. In some cases, merchants have restriction to certain locations.
One of the major advantages with cross-border commerce is, you earn foreign exchange besides expanding your customer base and explore new markets.
Reports have shown that 30% of Americans, 61% of Canadians, 32% of Britons, and 71% of Irish citizens, among others, shop domestically and cross-border.
These are potential markets for discerning drop shippers.
While at it, drop shippers, have been very successful barring a few due to inevitable factors.
But those who know and follow the right strategies are successful.
You could be one among them presumably we can expect a success story from you soon.
With the right information, approach, platform, technology, apps and appropriate tools, your drop shipping E-Commerce business can be poised for a take-off!