Is Dropshipping Worth It?

By Author: Shane Emerson
Total Articles: 7
Comment this article

Have you ever though of running your online business without holding inventory? If yes, choose dropshipping.

Dropshipping actually works! It is a profitable venture provided you sell the right products and choose an appropriate ecommerce platform.
Dropshipping is an excellent business opportunity simply because you can get started with minimum investment. In other words, it is incredibly cheap to open an ecommerce business with dropshipping.

Benefits that make Dropshipping a Rewarding Experience

There is little doubt that you can make money using the Ecommerce Dropshipping business model.

In a traditional ecommerce model, you have to make arrangements for inventory storage, packaging and shipping orders. As a result, startup costs can go over the rooftops.

Dropshipping gives you the freedom to fully focus on marketing your business.

This is because, with dropshipping, you no longer have to deal with inventory or shipping orders. The supplier/distributor takes care of handling inventory, storing it in the warehouse as well as transporting the products from the warehouse to the customer's location.

In other words, order fulfillment is not your responsibility in dropshipping.

No wonder with dropshipping, your investment is limited to starting your website and a little bit of marketing.

Setting Up an Ecommerce Store

If you choose the right ecommerce service provider, you can design a professional online store without the need to know any coding skills.
There are ecommerce companies in the US and Canada that will allow you to quickly build an online store.

Moreover, if you go for a fully hosted ecommerce platform, it will free you from the technical aspects of running an online business.
For instance, you don't have to setup your own server nor invest in expensive network infrastructure to run your online business. The ecommerce service provider handles everything so that you can focus on sales.

With Wholesale dropshipping, you can buy products at a very low price and sell them to your end customers at a high price. Here, you purchase at wholesale prices, hence the profit is always high.

Finding the Right Dropshipping Distributors

Picking is the key. With the distributors handling the entire order fulfillment, your business is at stake.

Opting for inexperienced distributors that have many complaints filed against them can definitely ruin your reputation and eventually your business.

Go for distributors that offer good quality products, help you to earn high margins and most importantly provide after-purchase tracking details at any given point of time.

There are a few ecommerce platforms that are already connected with reputed dropshipping distributors. This will eliminate the hassles of searching for the right dropshipper.

These ecommerce solutions have pre-built integrations that allow them to pull the distributor catalog directly into their store. So once the buyer places an order on the store, all you have to do is pass the order details along with buyer contact to the supplier. The supplier then ensures that the order is delivered right at the buyers' doorsteps.

Selecting the Right Product

If you want to earn handsome returns from your dropshipping store, make sure to choose products that are in high demand and most importantly have low shipping costs.

Some online entrepreneurs using the dropshipping business model complain about getting low margins. In this case, the main culprit is often the products that they are selling.

Shane is an American writer for various digital news publications. After being in the ecommerce industry for more than 15 years, Shane has a good understanding of what it takes to make an ecommerce business successful. His articles give insights on the latest trends in the B2C and B2B ecommerce industry. His ecommerce coverage is robust and provides everything from best ecommerce platform to improving your website site. He also likes to cover newsworthy events related to business management software, customer relationship management (CRM) and Quoting software.