Dropshipping is where an eCommerce business takes orders online but the supplier fulfills the order to the end customer. As a result, the seller does not have to carry inventory or pay any money upfront.
There is a lot of interest to start a dropshipping business right now and I get a lot of questions regarding the benefits and how profitable it really is, so I put together my answers here to the most asked questions.
Is dropshipping still profitable in 2021?
Yes! Dropshipping is still profitable in 2021 because of the increase in eCommerce shopping due to the pandemic. Dropshipping is a business that will never die, it’s just like a regular retail store, people need to shop for products. Depending on your niche and what products you sell, you might have higher or lower profitability. Before starting a dropshipping business, the most important thing to do is to research hot selling products and pick a niche that you have an interest in.
Should I start a dropshipping business?
Dropshipping requires very little investment and no need to deal with manufacturing and handling of the products, thus it is easier to start than any other eCommerce business.
Dropshipping is a perfect business for someone who is just starting their online business and getting familiar with the world of eCommerce.
It can also suit someone who already has an eCommerce store but wants to test out more products without buying a huge stock.
If you only want to focus on marketing to drive traffic and conversions to your website, then a dropshipping business is for you.
What is the catch with dropshipping?
There is no catch in dropshipping. It’s just like any other retail business. The only difference is that the retailer doesn’t need to purchase physical inventory and the supplier will ship the products directly to the customer.
Is it better to dropship or ship yourself?
Dropshipping tends to earn you a lower profit margin per order than you would earn by shipping the goods yourself. But on the other hand, you’ll save tons of time and can focus on marketing your brand instead to gain more customers. If you want to increase your profits for dropshipping you can raise your prices, at least as much as your market will bear. You can also sell more volume. And you can always contact your supplier to negotiate a lower product pricing.
What are the cons of dropshipping?
I’m sure you heard “it’s easy to make money with dropshipping and there are no risks!”. Truth is, there is very little upfront financial risk with dropshipping, but other risks are low-profit margins and no quality control. If you work with a bad supplier and your customers receive low-quality items or long delivery times, it will affect your brand reputation. Always research suppliers and test buy from them before you start working with them.
What products are good for dropshipping?
There are dropshipping companies that work with just about every market, niche, and type of product. You want to be in a hot market, but you’ll need to niche it down to compete with less people in the same industry. If you have a passion for a certain market or product, that enthusiasm will make your marketing efforts much stronger and the business will last longer. Always pick a business that you enjoy working for.
How long does it take to make money dropshipping?
You need to remember that patience is a virtue in the Dropshipping business. It will at least take 6 to 12 months to actually get profits from your store. It takes that much time to get substantial success. It’s not wrong if it takes you a year to get profit as every individual has different learning experiences.
Can you start dropshipping with no money?
There are many platforms that you can use to start a dropshipping business, with no money investment at all. Some of the major players are eBay and Amazon. You can get started on any of them for free.
Best dropshipping platforms
There are quite a few different eCommerce platforms on which you can run your store, but the only 2 options I recommend are Shopify and WooCommerce.
There are plenty of dropshipping plugins for these platforms and you can customize your store to make it unique.
Starting a store on Shopify is easy and you can get a 14-day free trial.
After that, you will be paying $29/month.
If you want to start a WooCommerce dropshipping store, you need to use WordPress as a base platform and then install WooCommerce as a plugin. Both WordPress and WooCommerce are completely free to use.
If you want a full WooCommerce store set up, designed, and ready for you to start uploading products, I do offer this service to make it easy for you. Click this link to learn more.
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