Being your own boss is one of the biggest benefits of being a drop shipper. It empowers you to live life on your own terms. This means for instance that you can decide your waking and working hours outside the usual 9-5 system. It also means you can work anywhere, anytime, anyhow, any day.
Being a drop shipper means many more things, ten of which we shall highlight in this post. If independence and running your own business appeal to you, then pay more attention as we dive deeper into some key benefits of being a drop shipper, but before that
- 1 What is Dropshipping?
- 2 Here’s how it works:
- 3 10 Benefits of Being a Dropshipper
- 4 1. Growth Prospects
- 5 2. Global Market
- 6 3. Learning Resources
- 7 4. Low Startup/Running Costs
- 8 5. Profitability
- 9 6. Unlimited Suppliers/Products
- 10 7. Location Independence
- 11 8. Anytime Access
- 12 9. Time for Other Things
- 13 10. Easy Exit
- 14 Conclusion:
- 15 Author Bio
What is Dropshipping?
Simply put, dropshipping is retail without the hassles of buying stock or keeping inventory. It’s an e-commerce supply chain and fulfillment model that allows you to sell other people’s products without having to buy them yourself.
With a virtual store full of other people’s (suppliers) product images you’re ready to start drop shipping and become a drop-shipper, just like that!
Here’s how it works:
● You obtain an import product images from suppliers into your online store
● Set your own prices and price rules
● Customers place orders with you
● You take out your profit and forward cost price plus customer details to your suppliers
● Your supplier packs and ships orders to your customers
So, you’re sort of like a middle man.
Google Trends of Dropshipping
From 2004 till date, dropshipping has become increasingly popular among entrepreneurs worldwide seeking for a good online business. This has opened the space for a lot of competitors.
10 Benefits of Being a Dropshipper
1. Growth Prospects
According to reports, global retail sales revenue was projected to hit $18.84 in 2018, up from $18.25tr in 2017. Similarly, consumers worldwide spent $2.86tr on web purchases in 2018, up from $2.43tr in 2017 and $2tr in 2016.
With an online share of total retail sales looking up, now is a great time to become a drop shipper and share in the amazing opportunities presented by e-commerce via dropshipping.
2. Global Market
Whereas most brick n’ mortar stores are only able to sell in/to their geographical locality, dropshippers are able to sell to customers all over the world across borders.
Of course, this means more customers which easily translates to more sales and more revenue. For dropshippers, this also means being able to earn in foreign currency which can have certain forex benefits depending on your country of residence.
3. Learning Resources
Another cool thing about dropshipping or being a drop shipper is that you’re not alone. There are tons of training materials that do the heavy lifting for you so you can learn how to ace dropshipping from the very start.
This is very important so you can learn how to avoid certain dropshipping mistakes that many make, plus how to optimize your dropshipping business for success.
4. Low Startup/Running Costs
As far as costs go, dropshipping startup/running costs are comparatively lower. For around $29/mo you can have your Shopify store set up. As sales increase you may want to upgrade your Oberlo subscription from free to around $29/mo to automate your dropshipping business.
Your other expenses would be on internet access and advertising, which can vary depending on platform and approach. Since you aren’t investing in stock and inventory or warehouse or delivery trucks, it still sounds like a great deal.
Speaking of a great deal, to a business owner, none is greater than a good margin, which is what you get as a drop shipper. First, you get products for free, set up for cheap and you can markup as you may.
This arrangement makes drop shipping one of the most profitable businesses for those who have mastered the trade. Most drop shippers spend quite a lot on Instagram ads, Facebook ads, etc, but that’s because it pays for itself.
6. Unlimited Suppliers/Products
Speaking of profitability, dropshipping offers you many ways to stay profitable. One of them is access to a large pool of ready suppliers offering competitive prices. This enables you to get the best prices possible.
Similarly, access to an unlimited number of products or niches means you can always switch niches or products to more profitable ones, anytime, any day. This flexibility allows you to stay profitable.
7. Location Independence
Another major benefit of being a drop shipper is location independence, i.e, being able to work from anywhere. It is one thing digital nomads love, to be able to travel the world with their business in their pocket or backpack.
This means you can work from home, the park, beach, Cafe, lounge, balcony, anywhere. With drop shipping, you can experience the laptop lifestyle in your lap.
8. Anytime Access
With 24/7 access your dropshipping business never sleeps. Customers can place orders from anywhere in the world even while you’re asleep. You simply wake up to waiting orders.
This means you can make money 24/7 including holidays. Whereas you work only as much as you want, your store is open and working round the clock.
9. Time for Other Things
Speaking about the clock, time is one of the biggest benefits of being a drop shipper. No longer do you have to wake by 3 am to make breakfast, bath the kids and drive 2 hours to get to work by 9 am.
With zero commutes and anytime access, you can work anytime you want. A couple of hours a day would be okay. Some successful drop shippers have invested a lot of time upfront and can now afford to take extended breaks. With dropshipping, you can have more time for family, school, church, hobbies, etc.
10. Easy Exit
Another cool thing about drop shipping is that you can easily exit whenever you choose to. Easy entry and exit are two great features of a good market.
For Shopify users, Shopify Exchange is a platform where you can sell your dropshipping business should you decide to exit. Some drop shippers start, grow then sell profitable dropshipping stores for a profit.
Being a drop shipper comes with a lot of benefits. That does not eliminate the fact that there’s work to be done, sometimes a lot of work to get to good profitability.
With low startup and running costs plus high profitability, dropshipping is a no brainer for aspiring entrepreneurs. You should give it a shot.
Amos Onwukwe is an AWAI trained Business and Ecommerce Copywriter featured in Huffington Post, Dumb Little Man, Self Growth, E-commerce Nation, eCommerce Insights, Understanding E-commerce, Result First, and many others.
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