Starting a dropshipping business is one of the smartest steps an entrepreneur can take in 2020. You can market your brand while setting prices. You don't need to pay for inventory until it's sold to an actual customer.
And if you are still not yet decided about starting this online business, eCommerce sales in 2019 amounted to 3.5 trillion dollars worldwide. If statistics are anything to go by, dropshipping is an increasingly lucrative business to get into right away.
But before you get started, here is what you need to know, and here is where you can make it happen.
Dropshipping is a business model that allows entrepreneurs to start online businesses where they can sell products to clients without having to stock the inventory themselves. What happens is that when a dropshipping store manages to sell a product, the supplier ships the product directly to your customer.
The product itself never passes through your hands.
As a dropshipper, you never have to worry about storing, packing, or shipping your products.
A dropshipping business is great for new entrepreneurs looking to make an extra buck or existing businesses that want to expand by offering more products.
According to Grand View Research, the eCommerce industry will be worth 7,724.8 billion dollars by the year 2025. And as a dropshipping store owner, you can have a piece of this booming market in the years to come.
Another reason why you should consider dropshipping is that the number of online stores will never exceed the demand. A study carried out by Statista stated that billions of people worldwide will make online purchases in the future as a result of more disposable income, growth of the middle-class population, and increase in internet penetration leading to more intense use of social media.
As a dropshipper, there will be thousands of potential customers for your business. However, their purchase decision depends on your business management and how you capture their attention.
Dropshipping is perfect for aspiring entrepreneurs since it is accessible. All you need is a good internet package and you are ready to go. Here are a few other benefits of the dropshipping business model:
The growth of Amazon, Shopify, eBay, and other online marketplaces means that anyone can start an online store. Since you never have to deal with physical products you can get started right at home.
This is maybe the biggest benefit of dropshipping. With the growth of online marketplaces, it is possible to launch an online dropshipping store for as little as $20. Unlike other business models, you don't have to spend thousands of dollars on inventory.
You can run your dropshipping business from anywhere if you have a good internet connection. As long as you can communicate with suppliers and customers easy, your business will be on the right track.
Since you don't have to stock up on inventory, you can sell whichever trending products your customers may desire. As long as your suppliers stock up on the trending items, you can list them for sale at no additional cost.
Contrary to popular belief, dropshipping is not a get-rich-quick scheme. But that does not mean you can't make extra income or a living from dropshipping.
If you look around, many success stories are surrounding the dropshipping business. There are many ways to start and grow a dropshipping business. If you are focused on starting a dropshipping store as an introduction to eCommerce or a permanent business, it is important to understand that for dropshipping to work successfully you will have to invest time, money, and effort.
The dropshipping business is very much alive and profitability largely depends on how you handle your business and marketing.
Today, dropshipping is a highly profitable eCommerce business model that can be started with very little investment. As a result, any entrepreneur looking to open up new channels of income. As a business, you can also reach a wider market by adding dropshipping items to your product's list.
So, yet again, who is dropshipping for? Anyone with the right mindset and dedication can turn the dropshipping business into a successful business.