Dropshipping How to Start -Disadvantages of dropshipping

Dropshipping How to Start – Dropshipping is an online retail fulfilment method where a store does not store or keep products in stocks except is ordered by buyers. That is, when a store sells a product, it buys the product from a third party and has it shipped directly to the customer. Therefore the merchant never sees or handles the product. https://www.zmamen.com/shopify-sign-up-on-shopify/

The major difference between dropshipping and the standard retail model is that the selling merchant does not stock or have its own inventory. As a result of that, the merchant buys inventory as requested by a third party. Which is usually a wholesale or producer in to fulfil orders?

Dropshipping How to Start

Dropshipping How to Start

Have a marketable dropshipping Business Concept, by selecting the right niches markets.
Do underground competition research.
Secure Drop Shipping Suppliers.
Have a drop shipping website (E-commerce website)
Have a customer Acquisition plan.
Analyze and optimize.

The benefit of Dropshipping…

Little Capital Is Required – here, the advantage of dropshipping is to launch an eCommerce without having to invest thousands of dollars in inventory Upfront. You do not need to purchase product except you have already been paid by the customer. Without paying upfront inventory investments, you can easily start a dropshipping business with very small money.
Easy To Start – running eCommerce market is very easy since you are not dealing with physical products. With drop shipping; not payment of warehouse, packing and shipping your order yourself, tracking product for account reasons and continuing ordering product and stock management.

Overhead is low – because you are not purchasing inventory or warehouse, you experience low overhead. In fact, a lot of successful drop shipping business is managed from the home office with a laptop and less than $100 per month. Though, as you grow your business you may need to increase your capital.
Flexible Location – drop shipping business does not require a lot of tools. With internet connection and communication supplier you are good to go.
The wide selection of product – this is so sweet, the product you are not paying for directly, but you have the right to pre-purchase the items you sell. With this, you can offer an array of product to your customers.

Disadvantages of dropshipping

Issue of low Margin – here low margin is a big issue to operate in a competitive dropshipping niche. Because merchant set up shop and sell the product at rock bottom prices in an attempt to grow revenue quickly. This may destroy their business, they invested so little and they do not want to operate on minuscule margin.
Inventory Issues – it is good to keep track of items which are in and out of stock… But when you are sourcing for too many warehouses, which also involve fulfilling the order of another merchant. The easily way to solve this is to avoid sourcing for too many warehouse or products from plenty of manufacturers.

Shipping complexities – if you have multiple suppliers as most of them do. The product on your website will have a different drop shippers. This will increase your shipping cost.

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