Everybody loves to hear about new ideas for their next business or to start new business. Every ideas has different kinds of challenges, different process, different planning and requires different strategy. And nobody knows which idea will work for you and which won’t. It should be in your to-do list to study and learn about the new idea, how to implement and how to market that idea and generating revenue. Today I am going to introduce a very profitable, hassle-free, less startup cost involved business. Everybody call it “Drop Shipping“. It’s not new so may be you already heard about it. Let’s dig it deeper.
Drop-shipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product
If you want to define it more simply, then just think you have an e-commerce website with lots of products, people come to your website, purchase and they receive the products. Here it comes the drop shipping, when actually all those products you were displaying on your website are not yours. You are just showcasing your supplier’s products on your website, when people purchase, your supplier deliver that product directly to your customer who purchased that from your website. You don’t need to worry about product, inventory and delivery/logistics. That’s exactly drop shipping.
So why’s it’s profitable or worth considering for your next business? Let’s check it out.
1. No hassle to manage products or inventory by yourself
In the drop-shipping business, you don’t need to stock or buy products. Just choose a good supplier and showcase their products on your website. Your supplier will manage their inventories, you don’t have to worry. When you will receive order, just pass that to supplier and he will deliver.
2. Very minimum investment or startup capital required
Honestly, to start a drop shipping business you don’t need to invest a lots of money. Most of the investment goes on products stocking but in this case, you are not buying any products so no investment. You just need to buy a domain with less than $10 (sometimes less than $1 from GoDaddy or sometime you will get offer for free domain with hosting). Web hosting package for less than $20 a year or so. And a website in wordpress that may cost $50 or $100 or it depends on how you plan. So if you truly want minimum investment, you can start your drop-shipping business with less than $100.
3. No logistics or delivery support required
It’s one of the biggest hassle to sell products online. Delivery or logistics can be very problematic and require large business setup. But in this drop shipping business you don’t need to worry about delivery and fulfillment. Your supplier will deliver your products to your customers. You just maintain your e-commerce platform and everything will start running smoothly. You just collaborate.
4. High profit margin
In drop shipping business, you can find lots of supplier from various online e-commerce platform like Aliexpress where you can get products with discounted and low price. So collect product information from those site and showcase that products in your website with price as much as you want. So it’s easy to make profit from each sale but that depends completely on your marketing strategy.
5. No extra human resource except You
To manage and run a drop-shipping business you can run this completely by yourself. You don’t need any extra human resource to manage your business. Initially to design your website you can take help from others or you can find any company who are experts to develop your drop-shipping e-commerce website. After that, you can manage all (managing products, manage supplier, etc) by yourself
Now think, is this enough for you to convince yourself to start drop-shipping business? There are lots of article out there where you can get more and more positive ideas and guidelines to start your drop-shipping business. Just google it or you can read some guidelines from here. If you need any technical assistance, please feel free to write us at firstname.lastname@example.org and we will be happy to help you to start a successful drop-shipping business.