If you wish to start up a business but with limited capital, then dropshipping might be the best option to explore. In focusing on dropshipping as a business in 2021, we will discuss on what is dropshipping and the benefits of dropshipping.
WHAT’S DROPSHIPPING BUSINESS?
Drop Shipping is a fulfillment method where an individual or a store doesn’t keep the products it sells in stock, instead, the store purchases the item from a third-party supplier and has it shipped directly to the customer. As a result, the merchant doesn’t have to handle the product directly which makes it easier for the merchant to deliver the product without stress.
HOW DROPSHIPPING BUSINESS WORKS?
Dropshipping follows a rhythmic pattern and to do this, you need to consider 3 things involved which are: The supplier, the merchant (that’s you), and then the consumer.
The merchant doesn’t need to own or keep any stock. Instead, they sell the stock online which is shipped from the supplier directly to the consumer. Meaning the supplier handles all the packaging and shipping while the merchant is the one who connects the customer and the supplier together for the purpose of making a profit from each sale.
WHAT ARE THE BENEFITS OF DROPSHIPPING?
Some entrepreneurs want to explore the dropshipping business but don’t really know the benefits are, so they scramble around and sometimes give up on the dropshipping idea. On this note, we will be looking at the benefits of dropshipping and dip in why dropshipping is the best.
1. LOWER START UP COST
Most Business that adopt the drop shipping method requires no high start-up capital as you don’t need to own a physical shop or hire a staff instead you breed on an online shop which can be run on social media just by advertising product for the public to see and anyone interested can place an order while you deliver to him or her.
This kind of business offers flexibility which allows the entrepreneur to operate from anywhere in the world as he or she only needs to showcase the product and services that are available. Flexibility in dropshipping allows you to get in contact with anyone all over the world as well as it also helps the merchant to purchase directly from the manufacturer and as well as deliver to the retailer or customer in due time making you the middle man in the transaction process.
3. OFFERING OF DIVERS PRODUCTS
As an entrepreneur who’s diving into dropshipping kind of business, be rest assured that you’re opened to more product selling Opportunities which makes you virtually open to reaching out to more customers. All you just need to do is work with a reliable supplier and fulfil orders.
4. PROFIT MAKING
In every Business, the sole aim is satisfying your customer and as well as making a profit. In drop shipping, you can make money by adding a profit margin to the product you sell. All you just need to do is get the total price from a supplier and then add your own profit to the price the supplier gave as your own profit earnings. Note that, you must always put at stake that the profit margin must be realistic so as not to lose your customers as e-commerce is very competitive nowadays that’s why it’s very advisable for drop shippers to drop-ship directly from the producing Company if they have the access to it.
In conclusion, I will advise entrepreneurs who wish to venture into a business but has limited capital to try the dropshipping business as it might be a good start to something great. Dropshipping is legal and can be profitable.
Do you know of someone who’s into drop shipping or wish to venture into it but requires to know more about it, then you can do well to share this article with them as it will help them make the right decisions on how to go about it.