Recently on Sheri’s Dream Catcher’s My Business Journey Journal our topic of discussion was Drop Shipping is a Useful Opportunity. We learned that Drop Shipping is not for everyone and nor is it easy. However, it is a low-risk business model that allows you to sell products to your customers without incurring huge running costs. Stemming off of our previous My Business Journey Journal Topics, we are expanding our options when it comes to our goods and services that we want to sell for a profit while giving value to our customers.
What is Drop Shipping?
Drop shipping is a low-risk fulfillment method where you do not need to store actual inventory onsite. Instead, orders are fulfilled, and inventory is shipped directly from a third party to the customer. As a result, you only pay for the item when it is purchased, thus lowering your overhead costs.
What is a drop shipping procedure?
When you have a drop shipping business model, you are not required to have a physical store. For instance, a drop shipping business is typically seen as an online store. Previously in our Storefront Vlog we learned the differences of a physical storefront and a virtual storefront. Some physical retailers may keep potential drop-shipped items on display and provide details on how the customer can purchase the product. For this reason, the retailer may arrange for the products to be shipped directly to the customer from the manufacturer.
The Pros and Cons of Drop Shipping
The pros for drop shipping is that there is low risk. Such as not having to invest a ton of money into inventory that potentially may not sell. Since you do not need to stock up on inventory, you do not need to secure a warehouse to store your inventory. Therefore, you end up with very little overhead costs too. Drop Shipping can be useful for both small and large businesses in the long run. However, the con is that drop shipping is not for everyone.
Benefits of dropshipping
The benefits of drop shipping can include the advantages of quickly testing different business ideas with limited risks. Due to the low risks, it gives the business an opportunity to learn a lot about how to choose and market in-demand products. Thus, making drop shipping a great business model for aspiring entrepreneurs to start with. See our list of benefits of drop shipping below.
- Less Capital is required
- Easy to get started
- Low Overhead costs
- Flexible location
- Wide Selection of Products to Sell
- Easier to Test
- Easier to Scale
Businesses that utilize drop shipping gain the ability to list and potentially sell products before having to purchase large amounts of inventory. In addition to low over head costs, ecommerce businesses do particularly well as their sales grow. Due to the fact that additional work comes with sales growth, drop shipping sites can rely on the manufacture to help with the increased sales volume and customer support.
What to know before launching a drop shipping store?
Before launching a drop shipping store, it may be beneficial to you, your customers and your store to educate yourself on what ecommerce is. In addition to learning the ins and outs of the virtual business world, it might be a good idea to research your products, suppliers and competitors as well. Not only do you want the best ecommerce business, but you also want the best ecommerce platform to run and host your online business. For instance, the best ecommerce sites will come with tools that will have hosting, design, pricing, payment options, marketing tools and reports.
Let’s not forget
Do you anticipate heavy traffic to your online store? If so, consider how much you will sell. Of course, if you tend to grow, having an ecommerce platform with a solution that offers lots of online storage space, inventory and bandwidth is ideal. Additionally, checking for must-have features such as payment security and sales reports will be beneficial in the future. Clearly provide enough payment and shipping options for your customers.
TO LEARN MORE ABOUT Why drop shipping is a useful Opportunity-WATCH OUR FULL MY BUSINESS JOURNEY JOURNAL VIDEO DISCUSSION BELOW- Drip Drip Drop
True joy of nature is when every drop of water shines like a pearl
Anamika Mishra
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