Is Drop Shipping worth it??
Dropshipping, born out of technological revolution has disrupted the traditional market system thereby giving rise to a system with low barrier to entry, and requires less resources to launch.
This results in a lack of physical inventory i.e. @droDropshiping mainly for e-commerce retailers, rather than traditional brick-and-mortar mode of operation. With dropshipping, you can build a sustainable, and long term business right from the comfort of your home with just a Personal computer and access to the internet.
With the birth of online shopping and e-commerce, marketplaces like Amazon, Shopify, only to mention but a few. Entrepreneurs are turning to dropshipping as a way to start their own retail businesses which brings us to the question "Is it worth it ? "
Before we dive into the pros and cons of Drop shipping, What is Drop Shipping?
Simply say, Dropshipping is an e-commerce system that allows a retailer sell products through an online front store, without actually stocking inventory themselves. What this means is that there are no stocking inventory, no packing up orders, and no shipping. Instead, you allow a third party handle all of that for you while you concentrate on building your brand, selecting your products, making sales, as well as grow your profits. Dropshiping allows stores to sell products without keeping any physical inventory.
In Essence, the retailer sells the product to the customer, and passes on the sales order to a third-party supplier, who ships the order directly to the customer on behalf of the retailer. So as a Dropshipper, you don't need to invest in any product inventory, warehouse or storage space, and you do not have to handle the fulfillment process.
To further Buttress this, let's have an overview of the entire process of dropshipping.
So How does Dropshipping work?
(1)The manufacturer creates the products and sells them to the dropshipping supplier (otherwise know as an wholesaler)
(2)The dropshipping supplier (or wholesaler) sells the products to you (the retailer)
(3)The customer places an order through the you
(4)You (the retailer) pay and send the order to the dropshipping supplier, who is now responsible to pack and ship the order to the customer
(5)You (the retailer) ensures that the customer receives the order, and you must also handle any customer service inquiry.
In Dropshipping, the retailer acts as an intermediate (middleman)between the supplier and the customer. The store owner doesn’t handle the product. The retailer gets profit from the customer’s price and the cost of buying the product from the supplier.
Benefits of Dropshipping
One of the advantage of dropshipping is that it allows for very little upfront investment. Unlike the traditional retail businesse model, there is no need for you to keep large amounts of inventory or invest in warehouses to store them.
(2)Dropshipping also allows one to quickly add new products to the online front store without having to go through the hassle of physical inventory management.
(3) One of the many benefits of dropshipping is that it offers flexibility since you're not tied down to any one product, you can decide to switch suppliers and products to find what works best for your business.
There are many good reasons why one should consider dropshipping, which is the fact that it minimizes startup risks,and it allows for Lower storage and logistics cost.
In summary, "Is Dropshipping worth it"? Yes, Dropshipping is worth it because it is a low-risk business model that allows one o sell products to customers without incurring huge running costs like a wholesaler would have.
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