There are plenty of articles floating around on the internet with numbers that reveal how much dropshipping is making. And those who believe that e-commerce is a thing in just North America and Europe are wrong. It is a global phenomenon and will continue to be one of the cornerstones for the future. But what makes drop shipping so popular for both individuals who are looking to make some extra money on the side and massive companies that dominate their area of expertise? The answer is not that simple as there are quite a few reasons why that is. The most attractive aspect of this business model is that the best dropshipping products can be found anywhere: Google, YouTube, AliExpress, etc. You don’t have to look far to find a winner!”
Product Sourcing
If you consider how regular e-stores operate, it can become quite problematic for those who get their products from other manufacturers and sell them after. The whole thing becomes even more of a headache if it is in another country. Items are delivered in bulk, so calculating how much you are going to sell beforehand is crucial. And who is capable of doing calculations that are perfect? The more you delve into it, the clearer it becomes how much money, time, and other resources it takes.
Meanwhile, dropshipping eliminates all these problems and allows you to focus on marketing and profits. Even if you do have to deal with issues that arise with the products, it is no more than a couple of emails every day or so.
Storage
While this point has been mentioned above, it would still be worth emphasizing how much of a difficulty it can be to store your products. Take used car parts for instance. There will be another issue besides the lack of space. It is not that great for the environment, so if certain agencies get the hang of what you have, you might end up in trouble. And there are a number of products that would cause this.
Order Fulfillment
Packing, going to the post office, etc. is not that big of a problem if you have just a few items to ship every other day. However, as soon as things start to pick up, you will more than likely not have enough time for all of that. And if you are stuck all day dealing with order fulfillment, there will not be enough time to focus on the website and marketing. Once the scaling begins, it will be physically impossible to deal with everything yourself, and hiring others will mean paying them. Again, this is another problem that does not exist in dropshipping. Logistics are not the same.
Photos and Cataloging
To shine in the world that is dominated by big companies, a new e-shop owner will have to put as much effort as possible. Products will need to appear as attractive as they can, which means that there will be a need for an expensive camera, and even a professional photographer. It would not be a stretch to say that you will need to get an entire studio for things to work out in your favor. Meanwhile, drop shippers have it easy thanks to the amazing product importing feature app. This app allows for photos to be instantly imported.
Potential to Scale
The potential to become a powerhouse in e-commerce by drop shipping is massive. There are plenty of companies that started out as nothing but an individual or a group of people who had the same goal. Since the method requires very little money to invest, a lot of money can be used for expansion. The more time you spend learning about how it works, the easier it will become to make your dream a reality.
Testing Different Products Without Spending
It is more than likely that you will not have a lot of success with your first venture. But that is not a bad thing as it will be a good experience for the future. Dropshipping allows you to sell and test without spending money yourself. Finding the perfect product to focus on will take time, but if there is one method that allows you to do so without worrying about financial loss, it is this one.
All in all, it should become clear why dropshipping is such a great thing and will continue to be one of the cornerstones of e-commerce in the future. What is dropshipping is the question that first-timers might pose, but it is thoroughly explained in the second chapter of the ebook by Oberlo titled “Dropshipping 101: Ecommerce Without Inventory”. So if you are interested in starting something of your own, give this ebook and other sources of information a read.