All business look running smoothly when settled after a lot of hard work and efforts put by individuals in the start. There is a universal business rule to keep working hard for 1000 days to get a successful, fruitful and sustainable business running generally. Dropshipping is a concept started lately for advancement of retail business going globally through the internet or online marketing facility. The method used is such the online store doesn’t have to keep the products but sells in stock, the seller has to do the marketing and the supplier actually maintains the inventory, It is a team work effort put in to maintain the business running smoothly.
For example, when a product ordered using the dropshipping system, customer purchases the item and makes payment to an online store marketed by seller also maintains the queries of the customer and has is shipped directly to the customer, the seller doesn’t have to handle the product delivery directly, but the supplier packs the item ships the product to the customer with sellers contact details, supplier doesn’t have to worry about the orders just have to manage his inventory. Dropshipping business is a trending business today mostly for the less investment people, house wifes, part time business start ups, less risk takers, and small business retailers. This business is mostly run by amazon, flipkart, Meesho, shopify, myntra etc.
This concept comes with a lot of advantages as well as disadvantages, here is a list of benefits and losses for running this business:
ADVANTAGES OF DROP SHIPPING:-
Less Budget Required
I guess this is one on the biggest advantage for any individual who had a dream or wishes to work for themselves with less capital in pocket. Where you don’t have to spend thousands of money for decorative shops, buying stocks of products, to be more precise you don’t even have to even buy a product unless a sale has been made but just have to launch your own online ecommerce store.
Less Exhaustive
More smart work needed then hard work. The products stocks, packing of the product, shipping, and rent payments are away from being a burden on you and only have to keep working on online marketing agenda.
Location Friendly
Any personnel sitting home, working in his/her office, playing on the play ground or enjoying with friends and family can manage orders remotely, just have to manage and keep an eye on your store connected device.
Choice of Multiple products Selling
Dropshipping helps an individual to sell a vast range of trending products ( jewellery, cosmetics, accessories, garments, sports items, footwear, etc.) to sell by uploading on their ecommerce store as one doesn’t need to purchase but just have list on their store till they get any orders.
Legal Business
Dropshipping is a legitimate retail business globally, with business running and customers get satisfying with no fraudulence complaints.
DISADVANTAGES OF DROP SHIPPING :-
Supplier inventory issues
When selling through drop shipping this becomes a major factor as the supplier doesn’t supply only to one merchant (seller) and the inventory can change on daily basis or can also run out stock, where keeping an keep for stock is a mandate.
Low Profit Margins
Dropshipping has been highly competitive due to which a biggest advantage can be seen and have to settle with low marginal profits with rock bottom prices to maintain the customers need.
Damaged caused
A seller can send the order request to ship the product to the customer directly through supplier but the question that arises is, if the supplier dosent deliver the exact product or product is delivered in a damaged condition who’s to blame? – The seller!
Multiple Product Disadvantage
As most dropshippers think of supplying wide range of products but they forget they also have to deal and connect with different shippers or suppliers. Eg. If you get 4 different orders of shoes, jewllery, garments, cosmetics, the shipping charges will differ as the suppliers are sitting in different places which reduces your profit of margins and have to settle with low profits
What can be the investments for doing a dropshipping business?
This business includes a substantial investment. Its tough to say though majorly the investments depends on the ecommerce platform you choose to showcase your store, it may vary.
Investments to keep in mind :-
Domain cost – $5 to $20/ year
Online store cost – $30/ month (variable)
Online advertisement – depends on your pocket budget, minimum $500 spend initially, can also invest the more positive and faster results you desire.
*NOTE*
A dropshipper can earn 10% – 40% profit of margins which ever product or commodity one wishes to work with, This business is possible in today’s fast moving social media world.