10 Reasons Why You Should Start Dropshipping Today

What is Dropshipping?

Drop shipping is buying and selling products without keeping an inventory. You market the product, get an order, forward the order to the supplier, and supplier delivers the product to the customer

The module sounds simple but in every business, there are certain steps and precautions to take in order to be successful. In short, there are certain rules in the process. Your supplier will have to agree to the drop shipping module in order to work in harmony without stepping on others' business.

In this post, let's look at 10 reasons why many retailers are looking into the drop shipping path and why you should too.

10 Good Reasons To Start Drop Shipping Today

1. The startup cost is at a minimum.

In every business, you will need a startup capital to help it grow from the ground up. To start a standard retail business, the Small Business Administration reports that micro businesses can get started at $3,000 or less, depending on the size and nature of your business.

With drop shipping, you can start with a minimal startup. But if you have the right resources, you can even start with practically zero.

2. There is a lesser risk when compared to standard retail business.

All businesses, regardless of the type, have certain risks. Just the thought of incurring possible losses is a risk in itself. Considering that there is practically no cash or credit to buy and sell products, the risk of losing is practically reduced. With dropshipping removing the item from inventory stock can be as effortless as a click of the mouse. The fluidity of your cash and credit conditions tend to be more liquid when they are not stocked in inventory.

3. No need for stocking items or maintaining an inventory

Among the key expenses of managing a retail store is acquiring supplies and maintaining an inventory. Generally smaller merchants opt for financial loans or additional sources of financing to fund this part of the business.

With drop shipping, you don't need to keep an inventory, just the product images listed on your digital retail store. Stock images could substitute the actual stock which is maintained by your supplier. Your suppliers' inventory will dictate your stock availability and you can do this through a virtual inventory application.

4. No warehouse is required.

As in number 3, since no inventory is required for drop shipping, it follows that there is no need for a warehouse. Therefore this saves you from the following costs in maintaining a warehouse - rent, management, insurance, manpower, and others.

5. Large selection of products to sell and faster expansion

Some suppliers require minimum orders to close a business deal with standard retailing business. With drop shipping, you have the option to sell with single or small orders making it liquidity quick. You can choose a specific niche to sell or you can expand to sell in all niches. You can expand quickly as soon as you get the right technique in the drop shipping arena.

6. You're the manager, the proprietor, the supervisor, and the boss.

You manage your business. Whatever effort you input is your output. You don't answer to anyone but to yourself. You own the rewards and you take responsibility for the risks.

7. You can work anywhere.

Since your business operates virtually through a digital store, you can practically take your business anywhere with your computer and an internet connection. So you can work from the islands of Hawaii, have your supplier from China, and deliver products to your customer in California. All of this can be done with just a click of a mouse.

8. You don't need to maintain an office.

As you can work anywhere, from your home or on the road while traveling, you practically don't need to maintain an office to house your business and close deals. This relieves you from office rental, staff salaries, office supplies, and others.

9. You can automate the process

The process in drop shipping can be fully automated. There are readily available dropshipping tools that will help you monitor inventory, close a sale, make an order, and even notify your customer when shipment had been sent. All these tools can make your life easier.

10. You can finally brand yourself

In the drop shipping business, you have the ability to brand yourself by the suppliers sending out the items using your brand name, your sticker with logo, and your address. This makes it look that you actually delivered the product instead of the supplier. This is your chance to grow your brand and make a really good name in terms of quality with your supplier. As you grow, your supplier grows and profits too.