Dropshipping is one of the very few business opportunities that you can start with little or no capital to invest.
Although, despite the simplicity of getting started, dropshipping has generally been misunderstood and underestimated in many ways, and that is the main purpose of this dropshipping for dummies ultimate guide.
In this dropshipping for dummies (beginners) guide, I’ll be explaining all you need to know about dropshipping in the simplest ways possible and also how you too can get started with your own dropshipping business within days.
Dropshipping for Dummies - Overview
Before the concept of dropshipping was discovered, starting an ecommerce business can be very expensive due to the amount of money required to invest in buying of inventories and the cost of renting storages. The required capital mostly runs into thousands of dollars and even more.
Fast forward to now; you can easily start an ecommerce store with as little as $100. Yes, that’s correct, one hundred dollars or less.
The big question is always this; how is it possible to invest such little amount of money and expect to make profits in thousands of dollars? Well, that is what you’re just about to learn!
PLEASE NOTE: the word “Dummies” used in this content is only for illustration purposes, it’s basically used in other to explain the subject in the simplest and non-intimidating way’s possible to the intended audience. The word simply refers to a “Beginner” in any subject, and both words will be interchangeably used as we proceed.
Dropshipping for Dummies Table of Content:
- What is Dropshipping?
- How Dropshipping works.
- PROS - The Advantages of Dropshipping.
- CONS - The Disadvantages of Dropshipping.
- How to avoid Dropshipping Scams when looking for Suppliers.
Dropshipping for Dummies – What are the PROS and CONS of Dropshipping (the Advantages and Disadvantages)?
Like any other businesses, dropshipping does have its own advantages and disadvantages (the Pros and Cons).
Pros of Dropshipping
Access to varieties and large quantities of products to sell – since you’re not paying any upfront cost, you can basically decide to sell any products of your choice. Also, you can list any amount or any quantity of products on your website or the marketplace of your choice.
Next to zero investment required – because you don’t own any product inventory, you don’t have any upfront cost related to the products you’re selling.
No storage required – because you are not storing any product inventory of your own, you are not required to rent a warehouse space or any storage.
No packaging or shipping headaches – your supplier is responsible for the packaging and shipping of all the products you sell. Although to your customers, you are directly responsible for the shipping, but all you need to do is to always update your customers with the shipping details provided by your supplier.
Cons of Dropshipping
Delay in delivery – because you don’t have control over the shipping of the products, you might have to face customer complaints about delay in receiving the products they order from you.
This can be a major issue because sometimes, the order might completely go missing and you would have to either refund the customer or resend the product again. Although, the problem of deliveries being delayed is not a common problem if you’re using reputable suppliers.
Product availability issues – because you are not in control of the products you are selling, there are times that the products you’re selling will be out of stock without you knowing and you will have to refund your customers. Although, if you’re dealing with multiple suppliers, you stand the chance of sourcing the product from your alternative supplier.
Low-Profit Margins – if you’re sourcing your products from a supplier that the prices are high, then you’re likely to face the problem of low-profit margins. The last thing you want is to be selling products that are obviously over-priced.
