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You may have seen many people are offering their services on Youtube and Facebook, to help you succeed in your dropshipping business. There are a ton of tutorials on how to start your dropshipping business.
There are many factors that make Dropshipping a popular business model, one of them is that the dropshipper (you) can make a lot of money with a little capital. Nowadays, while online sales are increasing, traditional retail purchases are on a rapid decline.
Is this even a scam as some people claim? Why it is so popular?
In this article, we will review and take a look at the dropshipping business model, then we can figure out together why it has become one of the most popular businesses in the digital world.
What is Dropshipping?
Dropshipping is a great business model for entrepreneurs because it doesn’t demand as much as the traditional retail model.
You don’t have to open a brick-and-mortar store, pay overhead, and stock products. Instead, you open an online storefront, find suppliers, list their products, set your profit margins and optimize your store to make it look inviting.
|? Related: What Is Dropshipping, And What Is A Dropshipper? (Open in a new tab)|
Dropshipping is basically a business partnership, but there are no contracts between parties. In this business, the seller doesn’t need to meet up with the supplier, you just look for a supplier for a product.
There are many dropshipping websites where you can find suppliers like AliExpress. Also, you can register for membership in many companies that offer a database of suppliers in a country you choose, like SaleHoo & Spocket.
What does make Dropshipping so popular?
There are many benefits of this business model that make it so popular:
It’s an easy business to manage
This business model is flexible, you can work whenever you want, and as much as you want from anywhere as long as you are on the planet.
You can run your dropshipping business as a side-hustle, but what you don’t know is that you can become a full-time dropshipper if you know how to master this game.
Running a Dropshipping Shopify business can be totally automated because there are many tools and integrations that were created to simplify the process.
For example, you don’t need to capture every payment, and process every order manually, this can be done automatically. The same when the supplier changes the prices, you don’t need to change them manually, you set rules on your website and let Shopify and suppliers do the rest.
In other words, you don’t even have to monitor your own inventory or sales, that what makes it a powerful business opportunity.
No inventory needed
When creating a brick-and-mortar store, it has to be populated with products, now this is not the case with the Dropshipping business model.
For the store, this is a mostly hands-off process. The merchant (Which is you) doesn’t have to order inventory or fulfill the orders in any way. Instead, the third-party supplier takes care of the product itself.
Instead of paying overhead and stocking products, you open an online storefront, find a supplier, list his products on your store and when someone orders from you, you buy the item from the supplier from the customer’s own money, leaving yourself a profit margin.
The supplier will take care of packaging, shipping and delivering the order to the end consumer. In other words, you don’t have to store or deliver anything physical at all. You simply make sales and the rest of the process (mainly fulfillment and distribution) is handled by a supplier.
Small capital needed
Shopify will act as your hosted e-commerce solution. This will allow you to easily create a professional-looking store, display your products and take payments from your customers.
You can start your Dropshipping business for as low as $30 since you don’t need to buy inventory.
The only capital you need is the payment for a website host. Shopify has 4 payment packages, they are helpful and affordable for anyone.
As you are getting started, it’s important to frankly say that you need no more than the Basic Package, it’s for $29 a month, and this can give you access to the tools directory. This is the coolest part! You can upgrade your store’s plan on your will once your business starts to grow!
No physical store, no real state needed
You do not need to rent a warehouse to keep your stock because you will not maintain an inventory. You do not need a large office, too.
You can work from your living room or kitchen, or in a coffee shop if you want to. You can also hire freelancers to help you, and they will work from their homes.
Logistics hands off
For the store, this is a mostly hands-off process. The merchant (You) doesn’t have to order inventory or fulfill the orders in any way. You simply make sales and the rest of the process (mainly fulfillment and distribution) is handled by the supplier.
It’s a huge market
You can find suppliers from all over the world, China, Australia, Canada, United Kingdom, United States and more. You can also sell globally.
The world is in your pocket, it’s your marketplace.
Endless options and products to choose from
There are millions of products and thousands of suppliers to choose from.
Find a niche that you are passionate about, across dozens of categories. You can find hot-selling products across niches such as clothing and accessories, antiques and collectibles, electronics, health and beauty, home and garden, and many more.
|?Pro Tip: It’s important to be confident that the supplier is legitimate, and will fulfill orders on time. Learn more about SaleHoo platform.|
Suppliers are willing
Not just merchants, but suppliers love this business model too!
If the supplier has 50 people selling his product, firstly, he would be willing to reduce the price, because there’s no marketing cost.
Secondly, they will focus on manufacturing instead of focusing their efforts on selling.
It’s a learnable business and easy to setup
You don’t need to fully master this model, it’s good to start right away, and learn as you go along.
Better yet, there are numerous resources that make dropshipping easier than ever before. For example, if you continue scrolling down, a free useful course will pop up somewhere on your screen to provide you with some great advice on getting started.
It’s good to start investing in yourself. Our mission in EcomDimes is to educate our readers and open for them the doors to new opportunities.
Some Stats That Show Its Popularity:
- 23% of online sales last year were fulfilled via dropshipping, which amounts to about $85.1 billion
- 34% of Amazon sales in 2011 were fulfilled using a dropshipper, and that number has only grown since then.
- Dropshipping is the fulfillment model of nearly 33% of online stores.
- With eCommerce growing by about 17% every year, it’s projected that the popularity of dropshipping as a fulfillment model will continue to increase alongside the industry.
- Dropshippers can earn more than 50% profit than those who keep their own stock inventory.
Where can you learn Dropshipping?
The worst thing that would happen to you is getting overwhelmed.
You can find tons of people on Youtube and Facebook who are talking about Dropshipping, don’t drown in videos without taking any action.
You don’t need a lot of resources, just focus on one side.
If you just choose EcomDimes to be responsible for educating you on how to start your Dropshipping business, you have almost done it, because we walk you through a step-by-step process, which makes it very easy for you to just implement our strategies.
I’m talking from experience, and what I’ve learned after raising multiple businesses online, is that if someone has done something, I definitely can do it too!
Finally, the person learns more from his mistakes. Put yourself into this and learn as you go along. If you need no more convincing, make mistakes and learn from these mistakes, improve yourself and grow your business, in a year or so, you will be having a profitable business, and you have time for your family and beloved ones.
How do you start a Dropshipping business?
The steps to follow to be able to build an online store are simple. Don’t get me wrong, this is a serious business model, and you still need to invest your time and efforts to get a professional and inviting store.
I usually recommend to the entrepreneurs who pass by our blog is to start with the Shopify free-trial, surf the admin’s panel and learn more about the functionality of the storefront. You will get the chance to try out this platform, build, and set up your store, without spending a dime, you don’t need to provide your credit card details for such a purpose.
So if you see that this is for you, you can upgrade your membership, fill your store with products, optimize your theme and make it populated with polices and needed pages, and you are good to go.
There are many factors that make Dropshipping a popular business model, one of them is that the dropshipper (you) can make a lot of money with a little capital.
In the beginning, you will be initially investing your time since you are going to give more than you’ll take.
If you watch tons of videos from different resources you may get overwhelmed, which will prevent you from taking any action.
After being armed with knowledge, it’s a good start if you claim your free trial and start right away. It’s crucial to get the advantage of what Shopify is providing nowadays, they are making e-commerce and selling online a lot easier.
If you are starting out, you need no more than the basic package, and you can upgrade upon your will, as your business grows.
Do not wait till you learn everything, get inside of the thing, and learn as you go along.
These Shopify plans are very affordable and helpful.
Do you see a potential in yourself for the dropshipping business model? Share your thoughts in the comment box, and I will reply back as soon as possible.
“Do not underestimate what you can achieve in a day, month or a year, you are closer than you think!”
Because you, our readers are precious to us, we’ve come up with this amazing course, that can teach how to launch your own Shopify store without paying big bucks to some guru! Do not forget to grab your seat, It’s FOR FREE!
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