Dropshipping – you must have heard this term during pandemic a lot. Because people all around the globe were facing financial issues. During that period, dropshipping became one of the many ways people could increase their potential income. And you will be happy to know that its scope is increasing every year. But what exactly is dropshipping, and how can people go on from? Keep on reading this article to learn about dropshipping in detail.
What Exactly Is Drop shipping?
Dropshipping is a type of business model that is used to run stores on the web. The best part about the dropshipping business is it requires the utilization of zero inventory. Yes, you have heard right. To start this business, all you need is a dropshipping website. And one of the best websites you can use to open your E-Commerce store and give a trigger to your dropshipping business is Oberlo.
Oberlo is an easy-to-use platform, and you can make your store within minutes. Once your store is created, and a sale has been made, your supplier will transport the order from their warehouse to your customer directly. You will never have to worry about the packaging, storage, and shipping of your Oberlo products. Let’s explain its working with a practical example:
Sam placed an order for Nike shoes in your store. You got his contact number, address, and other delivery details. Now you forward these details to your supplier. After receiving the details, your supplier starts packaging the order. When the package is ready, the supplier ships it to Sam’s address. Sam’s receives his order with your store’s branding on it.
How Profitable Is Dropshipping?
How profitable is dropshipping? It’s one of the most asked questions about this business model. If done correctly, a dropshipping business can be really profitable compared to other business models. And this is because you don’t have to take any responsibility for the shipping and manufacturing costs. Because of this, your profits can increase immensely once you have found reliable and good Oberlo suppliers to partner with.
Why Is Starting Dropshipping Business An Excellent Idea In 2021?
Dropshipping is one of those business models that include least to zero risks. When it comes to startup expenses, most of the Oberlo stores work on a prepaid basis. This means your customer will have to pay you in advance when placing an order from your store. You can transfer that money to the supplier after deducting your commission. This way, you don’t have to spend even a single penny on managing the inventories.
You don’t get overburdened by the cost of producing products, storing them, and the cost of maintaining the unsold inventory, packaging and shipping expenses. It’s a great way to become an entrepreneur as you can start and manage your dropshipping business on your own. However, with your store’s growth, you might require a team of experts to handle your orders and boost the visibility of your store on the web.
Is Dropshipping Worth It?
Many people have this question when they are planning to start their dropshipping business. The answer is very simple. And it is both yes and no. Dropshipping is worth the money and time you invest in it. If you don’t invest enough time in your online store, you won’t ever receive the rewards. And one of the reasons why people quit dropshipping business is because they lack consistency and perseverance.
Dropshipping requires lots of time as you have to set up your store, add various products to it, determine the right pricing strategy and sell your products. And if you want to make your dropshipping business successful but aren’t ready to devote the required time, then you should not go with it in the first place. This business model requires lots of patience and effort.
We hope now you have a good idea of what the drop shipping business is all about. So if you want to enter this business and increase your passive income – prepare yourself to put lots of effort, time, and patience into it. Because that’s what will make your store a great success.