What is dropshipping?
Dropshipping is a fulfillment method where 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 seller doesn’t have to handle the product directly.
The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory. Instead, the seller purchases inventory as needed from a third party—usually a wholesaler or manufacturer—to fulfill orders.
What is dropshipping?
1. Less capital is required
Probably the biggest advantage to dropshipping is that it’s possible to launch an e-commerce store without having to invest thousands of dollars in inventory up front.
Traditionally, retailers have had to tie up huge amounts of capital purchasing inventory.
With the dropshipping model, you don’t have to purchase a product unless you’ve already made the sale and have been paid by the customer. Without significant up-front inventory investments, it’s possible to start sourcing products and launch a successful dropshipping business with very little money. And because you’re not committed to selling-through any inventory purchased up front, like in a traditional retail business, there’s less risk involved in starting a dropshipping store or testing a new product line.
2. Easy to get started
Running an e-commerce business is much easier when you don’t have to deal with physical products. With dropshipping, you don’t have to worry about:
Managing or paying for a warehouse
Packing and shipping your orders
Tracking inventory for accounting reasons
Handling returns and inbound shipments
Continually ordering products and managing stock level
Is dropshipping worth it 2021?
If you want to earn a decent income by starting your side business, then dropshipping is definitely worth it. However, if you want to make lots of money in a short amount of time, then dropshipping is definitely not worth it. For dropshipping to work successfully, you will have to invest time, money, and effort
Dropshipping is one of the most profitable passive income sources you'll find online. ... With dropshipping, you can find trending products on the Oberlo marketplace that you can then sell online to customers around the world. You can sell products in various dropshipping niches from fashion to home decor to beauty.
3. Low overhead
Because you don’t have to deal with purchasing inventory or managing a warehouse, your overhead expenses are quite low. In fact, many successful dropshipping stores are run as home-based businesses, requiring little more than a laptop and a few recurring expenses to operate. As you grow, these costs will likely increase but will still be low compared to those of traditional brick-and-mortar businesses.
4. Flexible location
A dropshipping business can be run from just about anywhere with an internet connection. As long as you can communicate with suppliers and customers easily, you can run and manage your business.
5. Wide selection of products to sell
Since you don’t have to pre-purchase the items you sell, you can offer an array of trending products to your potential customers. If suppliers stock an item, you can list it for sale on your online store at no additional cost.