I’ve answered the question, “What exactly is drop shipping?” Why you should look for automated dropshipping website? I want to discuss the advantages and disadvantages of running a dropshipping business. Transparency regarding your options is essential to me.
That way, you’ll have a clear picture and can decide whether you want to build a dropshipping business or one of the other business models. So, before you want to create a dropshipping website, let’s know some advantages of starting a dropshipping business.
The first advantage of drop shipping, and probably the most important to me, is the ability to work from anywhere. I’ve spent the last few years in Vietnam, South America, and Thailand. With a drop shipping business, you can truly live and work from anywhere.
Dropshipping provides a level of location independence that few other business models do. Because you can be location independent, my coaching program has called “Drop Ship Lifestyle.”
No Costs for Inventory
Another advantage is that no inventory has required. So, when you first start with drop shipping, you don’t spend any money on inventory. The truth is that inventory is your most expensive expense as a traditional retailer.
You must physically have the products to sell them, but dropshipping eliminates this requirement. All you need are supplier approvals to have products.
There are no warehouse costs, and you only pay for items after they have sold. However, if you use the drop shipping business model, you are not responsible for these costs; they are borne by someone else.
No Returns of Handling
An enticing thing about dropshipping is that you do not have to deal with returns. To be clear, if your customer wishes to return an item, you must still send its return slip from the supplier to your customer. These items, however, will not deliver to you.
If you own a drop shipping company, you will not receive returned products at your home. They’ll return to your supplier, and depending on their policy, you’ll either get a refund, or they’ll ship the customer a replacement item.
Gather Data When Getting Paid
The next advantage of dropshipping is the ability to collect data while being paid. Assume you want to create a brand in the chandelier niche and sell your lighting fixtures or chandeliers. Also, let’s assume that you want to be an importer and build your product line.
We’ll also say that you currently have the funds to invest in it. So, before you pour money into an import business, have products manufactured and try to sell them… I would still advise you to start a dropshipping business in that niche first.
This Is Easily Scalable
Another significant advantage of a drop shipping business is the ease with which you can scale. For instance, if you make $100,000 a year in sales from a single dropshipping store, opening more stores with similar results is very simple.
Also, the great part is that you can do it again and again. I always recommend starting with one dropshipping store so that you can truly learn, go through, and master the process. But once you’ve done it once, it’s straightforward to do it again and again.