There is more than one option for many entrepreneurs who want to dabble into online business. You can choose to make your products, build your website, and market your products. Another option is to use the dropshipping method. With the dropshipping method, you don't have to make the products you sell. You only focus on marketing and paying attention to customer inquiries. Is dropshipping worth it in 2020? Here is our view on the matter.
Dropshipping As One of the Simplest Businesses
1. Low start-up costs
There is virtually no business that won't cost you some cash to start up. If you consider other e-commerce alternatives such as selling your products, you will find that the e-commerce business may require more capital than you think. As a new entrepreneur who is testing the waters, it is important to reduce your risks by starting with an option that will cost less but has a better chance of success. Dropshipping helps you learn the secrets of online business without risking too much cash.
2. Opportunity to scale your business
Your goal may be to start marketing your products. Why not start dropshipping the same products from other manufacturers? With this strategy, you get to understand your market better so you will be better able to put the necessary factor in place when you start your production. As your store gains popularity, you can begin to introduce your products gradually until you decide to sell them exclusively. Is it worth dropshipping? Yes, of course. This practice will save you lots of advertising costs and help you build success with far less effort than when you start purely on your own.
3. Gain some online business skills
You will need lots of skills to succeed in the e-commerce business. Skills needed for dropshipping range from choosing the product that sells, effective advertising, handling customer issues, and so on. Your journey towards becoming successful at the dropshipping business model will help you sharpen these skills. As a new entrepreneur, you may not win all the time. When you make some mistakes, you can easily correct yourself and get better as you move along. These skills you acquire are also required if you need to start an offline business. However, you choose to see it, dropshipping helps you acquire invaluable business skills.
4. High-profit margin
One of the facts that draw most new entrepreneurs to the dropshipping model is its potentials for massive profits. Of course, it may take a bit of experience and hard work to achieve this. The odds for massive profits on dropshipping are higher if you don't quit too soon. With the right store and methods, you can sell some products and make up to 600% in profits. You may not get this result every time but once you hit this, you want to stay hooked.
5. Unlimited support resources
There are perhaps only a few business models that offer as much support resources as the dropshipping business. Most stores that host your suppliers' products offer beginner-friendly guides to help new entrepreneurs understand how dropshipping works.
There are lots of training videos on YouTube to watch. Unlimited articles and guides for new entrepreneurs mean they can expect to get all the guidance they need to become successful. Only a few things ease the mind like knowing that you will get the needed help once you ask for it.
6. Get in the middle of a dynamic market
As a new entrepreneur, the dropshipping world will train you on how to cope with the ebbs and flows of the business. Consumers' needs change. The presence of new inventions can upset market conditions at any moment. As you compete with other dropshippers to get your share of the market, you begin to notice that certain dynamics play out in the market. This is perfectly okay as it indicates more opportunities for the entrepreneur who takes the time to understand the market. You can leverage on dropshipping market dynamics to create different niche stores that will be profitable in the long run.
7. Save shipping cost
If you have already started marketing your self-made products online, you will notice how costly shipping costs can get. It becomes more expensive to get your products to very far countries. To cut costs, you can use the dropshipping option to serve distant customers. One of the advantages is that you keep your clients without having to incur an expensive shipping cost. If you can combine dropshipping with production, you can reduce risk and put your business on the right track.
Dropshipping As Training for New Entrepreneurs
New entrepreneurs have a lot to learn about e-commerce but dropshipping makes learning easier for them. There is a need to understand the dynamics of marketing. Different products may perform better using different advert strategies. New entrepreneurs will also learn valuable product research skills. Good product research skills will help you discern which products may perform better in the market. Once you acquire these skills, they will keep serving you for long. Is dropshipping worth it? Certainly, the training you will get will be priceless.
What Does Dropshipping Mean in Personal Career?
Virtually anyone with some basic computer skills can go into the dropshipping business. If you need a side hustle to compensate for a low-paying job, a dropshipping business can give you the extra income you need. This may mean you have to work for more hours. But you will be rewarded for your time.
If you aim to be your boss, the dropshipping business offers one the easiest and cheapest opportunities to achieve this. Is a dropshipping business worth it? Many dropshippers are earning well above minimum wage every month. You may as well sacrifice your 9-to-5 job for better prospects in the e-commerce world. The road will not always be smooth but once you learn the tricks, you can take charge of your financial destiny. You also get a safer job as there will be no need to worry about the collapse of a company. There is also no need to get a business location.
How Can SaleYee Help You to Start Dropshipping?
SaleYee is a leading dropshipping wholesale supplier that offers 20,000+ profitable SKUs, free membership, fast and free delivery from local US/UK warehouses, and 24/7 customer support. It holds 2 promotional events, clearance sales, provides product recommendations based on big data research, and free business resources on SaleYee Blog to help every online retailer to easily start and grow their dropshipping business.
Conclusion
2021 is an auspicious time to start your dropshipping business. To achieve this dream, you must be ready to start with the tools you have now. Don't wait too long.
