Today, I’d like to share with you the concept of dropshipping and what it can do for you. If you are not sure what is dropshipping, you can learn what is dropshipping business here.
“Don’t be afraid to give up the good to go for the great.” ~ John D. Rockefeller
Dropshipping changes the world
More and more people these days are quitting their stable yet unrewarding 9 to 5 jobs in the search of a new, better life of self-employed entrepreneurs.
And, thanks to the dropshipping business model, their dreams come true.
Thousands of people quit their regular jobs, wave goodbye to the ordinary life, and embark on their independent business journeys.
Dropshipping gives you an easy online business start
The simple and easy-to-follow mechanics of dropshipping business means that anybody can launch a profitable venture at any given time.
Look how smoothly it all works:
- First of all, you choose the type of products to sell (commonly called a niche) for your future business
- Build your own online store based on this niche
- Pick suitable products and supplier for this niche
- Add the images and descriptions of these products on your online store and set a markup price
- When a client orders something from your store, you just buy the product from the original supplier and write your client’s address in the order form
- Finally, the supplier arranges the product delivery to the client’s address, and you receive your profit (from the markup price)
When you’re using this business model, the actual job of creating, storing and delivering the products is the supplier’s responsibility.
7 other benefits of dropshipping business
It’s easy to notice that dropshipping has lots of huge advantages over all the other online businesses. The most significant of them are:
- Because you don’t need to buy products in advance or to run physical stores
- So there is no risk of having any big financial losses
Low starting costs
- Creating an online dropshipping store is certainly a lot cheaper than creating any other online businesses
- Because you only need to create an online store, import products into your store and start selling (there’s a lot of cheap ways to create an online store)
Immediate access to money
- There is no risk of losing your money somewhere during the transaction process
- Your customer will first pay you to buy the product (i.e you receive $50)
- You then use the money you receive to buy the product from your supplier at a lower price (i.e you pay $20) and instantly earn the balance (i.e earn $30)
No background required
- Among all the other types of online businesses, dropshipping is considered one of the best for beginners
- The story of Alex is quite an illustrative example: he started his own dropshipping store without any experience or knowledge, and he managed to make $6,000 in just 4 months
Convenience and flexibility
- Dropshipping business is not limited by your geographic location or by your occupation type – anyone can start dropshipping at any point in their life
- Obviously, there are some day-to-day tasks that need to be done, but none of them takes much time with helpful automation tools
- Above all, you can turn your hobby into a moneymaking business. i.e if you are a fan of space exploration, you can sell various space-themed items
- That’s exactly what our friend Mousslim did. He started a store based on his lifelong passion, and it turned out to be a hit
- With minimal efforts and expenses, you achieve maximum business efficiency and profits
- You can then put your earning back into growing your dropshipping empire, and in turn earn more
- Many who started their first dropshipping store and found success. As a result, they have started a few more stores and increased their earning
Dropshipping is the business model with an unlimited growth potential
So, dropshipping model lets you build your own online business with the lowest costs possible since you don’t need to invest in manufacturing, storage, shipments, and other product-related issues.
At the same time, thanks to the global nature of the Internet, your business is not limited by any geographic boundaries.
Hence, you can launch a store while residing in any country, and you can effortlessly reach your potential customers even if they live far far away from you.
Best Dropshipping Examples
A brilliant example is Zappos, one of the largest USA-based online stores selling shoes, apparel, and accessories. The business started with the dropshipping model, and they managed to turn it into a huge e-commerce empire that has gained global recognition. And in 2009, Zappos was bought by Amazon for $1.2 billion. Not bad for a former tiny dropshipping store, right?
Similarly, Amazon itself has started as dropshipping store (kind of). If you check their history, during the early days, the website was basically processing queries for books and redirecting them to the relevant wholesalers and publishers. The results of this are impressive and Jeff Bezos, Amazon’s founder, has become the first person ever to gain more than $100 billion.
So, to put it simply, for a dropshipping store owner, the sky is the limit!