Thanks but what the heck is drop shipping?
Dropshipping is a fulfillment method where a store doesn’t have to keep the products they have in inventory on their shelves. When you sell a product you can route the the order to the drop shipping companies who place the item into a box for you which is shipped directly to your end customer. While dropshipping isn’t a magic bullet to make money online, it is a great low overhead option that offers many the ability to turn a part time hobby into a full time gig.
eCommerce Drop Shipping Benefits
Low Capital Investment / Low Overhead
To get started, you need a few things:
- A place to sell the products like a webstore or marketplace.
- A great dropship partner
- Great customer support
Easy To Get Running
Once you have the few of the above pieces in place, you need a system to help do the redundant jobs you have no need for. Inventory syncing, order management, and fulfillment (tracking) management. Once you have an automated software solution setup for this you can focus on the most difficult part, finding customers. Building a great brand is undoubtedly the hardest piece of the puzzle but with a laser focused strategy, you can build a terrific revenue stream. Most millionaires create multiple stream of income for themselves.
You can work anywhere you have access to internet! Work from home, at the office, or even on your smartphone when you have downtime. These drop shipping companies can handle the rest.
Traditional inventory means that if you have 3x the orders, you need to do 3x the work. With an automated eCommerce backoffice, that isn’t necessarily true in a dropshipping setup.
Of course dropshipping isn’t perfect. Since there is inevitably someone doing the work to give you the added benefits above, there is undoubtedly an added cost. However if you look at it from the point that it is either you or another paid employee, this cost should be weighed fairly by ensuring you account for the cost of your time or an employee’s time. Chances are one of the larger dropshippers has economies of scale you couldn’t easily achieve.