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If you are interested in starting an online eCommerce store then you’ve probably wondered whether or not to start dropshipping. Its a valid question to ask and one in which we will aim to address here in this article today.
So is dropshipping worth it? Yes, for the most part, dropshipping is worth it when the right methodology, strategies and mindset is applied. However, it does depend entirely on the individual/business and how the business model is practiced, applied and implemented. Dropshipping can either be hugely successful or an unfortunate failure which is ultimately down to context.
Let us know take a closer look at the question and explore the topic further. This way you will know if it is something that you should personally pursue.
Dropshipping can be an extremely profitable and flexible business venture. It has a lot of advantages over other online business models and it does not require any specialist skills, investment or knowledge to get started. In a relatively short amount of time, a brand can be built and scaled into a recognized brand and business and into a long-term stable income stream.
Unfortunately, dropshipping is not successful 100% of the time for everyone who starts. This is especially true if effective research, planning and strategy are not considered and put in place. For those, it can be a highly costly and frustrating experience. Stores can be closed soon after they are built and individuals can quit well before any positive results are obtained and returns on investment can be received.
Ultimately, being successful with dropshipping does not happen by chance and is no fluke. An online eCommerce store should be treated like a business; requiring work, dedication and investment. In doing so, you’ll be far more likely to succeed, ensuring you take the right steps at the right times and being aware of what it actually takes.
Here’s a quick caveat – if you have seen individuals claim that dropshipping is easy and you can obtain huge profits with minimal work and overnight, you should always be wary. Typically, these individuals charge thousands for short online courses and most of the time these turn out to be a waste of money and fail to deliver.
Being honest, due to these charlatans I once thought that dropshipping was a scam but I’ve since learned that this is far from the truth. As you will soon learn in the next section, there are numerous ways to dropship and many of them will lead you down the wrong path.
This is why it is imperative to learn as much as you can upfront, understand the model and how it works well before you get into the weeds where you do not know what to do or what steps to take.
My best advice is this: if you want to learn how to successfully dropship, it is best to sign up to a reputable, comprehensive yet cost-effective course. One that is taught by a recognized dropshipper and one that has years of experience and knowledge within the field.
Let us know take a closer look at this business model to see if it is for you and if it is truly worth starting. We’ll then look at the main advantages and disadvantages to give you a more complete picture.
What Is Dropshipping?
Dropshipping is the term used to describe the business model where you sell products you do not create, own or hold in stock. You market products to an audience, take orders, and then place that order directly with the supplier. When you place that order you ship it directly to the customer. So you never hold the product in stock and only order when you obtain an order on your store. This is the basic overview of how dropshipping works.
As mentioned previously, there are numerous different dropshipping strategies including: High Ticket (only selling more expensive items) and Private Labeling (selling products with your brand name on on) but ultimately the process is the same. It is the supplier/manufacturer who still sends the item to your customers.
One of the main advantages of a dropshipping business is that you do not have to create products, nor handle the shipping. You can also order products on an order by order basis so you do not need to buy a lot of inventory in bulk.
Furthermore, you use the money paid by your customers to make the order with the supplier – so you have a liquid cash flow and never really use your own capital to make orders.
With Dropshipping your profit is the difference between what the customer paid you, and the costs involved with purchasing, shipping and marketing the products from suppliers.
Pros and Cons of Dropshipping
Dropshipping, just like any online business model, comes with its own distinct advantages and disadvantages. Below you will find some of the main ones that dropshippers regularly encounter:
Will Dropshipping Be Profitable In The Future?
Dropshipping was recently made possible with the introduction of the internet, the growth of online software/platforms and the accessibility of products and suppliers. Prior to eCommerce, you required significant investment, a brick and mortar store, employees, inventory and stock and a variety of other pre-requisites.
This is no longer the case, with dropshipping all you need is an online storefront and the ability to source and market products.
If you are wondering If dropshipping has a future, then its important to consider how the retail landscape has changed over the last couple of years.
How many brick and mortar stores have closed near you recently? How many large, global companies have gone into liquidation due to too many physical stores and the costs involved with holding large inventory that does not move quickly enough?
Retail has moved online; and leading global brands that survived recognized this early. There’s a reason why retail stores continue to close; people are no longer shopping on the high streets and instead are placing orders online. Just look at the statistic below!
When you consider that Amazon were the first dropshipping company, and their relative size today, its easy to see the opportunities of dropshipping in 2020 and beyond.
As long as you can source good quality products at a cost-effective price, then there will always be the ability to sell online due to platforms like Shopify and marketing channels like Facebook Ads.
Is Dropshipping Worth It?
Dropshipping is worth it if you’re profitable. Sure, you’ll need to put in the research and success will not come overnight but the rewards are there for those who invest their time and effort in learning how to make it work for you.
The majority of individuals and businesses who failed with dropshipping will always say it is not worth it. It’s important to recognize and watch out for this response because it can prevent you from taking action and getting started.
Dropshipping can be a lucrative business venture and if done correctly, can help you to earn a significant income online with minimal costs upfront. It’s not as simple as some will lead you believe but you shouldn’t let this put you off.
Dropshipping would not be this popular if nobody ever made any money from it!
Dropshipping is essentially a retail business with the major advantage that you do not need to store inventory. You are still going to need to market products and promote your store, which is one of the major hurdles where some individuals begin to doubt the effectiveness of dropshipping.
As a dropshipper you will need to invest in your store and marketing but that is no different than any other business. You’ll also need to be willing to contentiously learn and adapt over time; otherwise you probably should not be starting a business in the first place.
From experience and opinion, starting a dropshipping store should be taken seriously and treated like any other business. Be hungry to learn and grow, spend time learning all you can about marketing strategies, watch free YouTube videos, follow blogs, and get yourself on a course. Most importantly, be sure to Start.
If you want to truly succeed with dropshipping, then you are going to have to take that leap of faith and begin.
Don’t be that person who thinks that dropshipping is just another scam. Instead, be that individual who does all they can to better their future, build their own business and set them-self up for a long-term future with eCommerce.
I’ve seen my fair share of dropshipping excuses (Niches are too saturated, ads are too expensive…) but more often that not these came from individuals who were not willing to invest the time or money to learn how to do it properly. None of these issues have ever prevented my stores from returning a 30% positive ROI. I’ve outlined my experiences here.
And if you are committed enough, they will not prevent you too!