Here’s why dropshipping has become so popular.
Dropshipping has become incredibly popular over the past few years. This is likely due to the low barrier of entry as compared to running a traditional eCommerce store. The entire concept behind dropshipping is that you, the business owner, do not directly handle your customers’ goods. Instead, you purchase inventory from one or more wholesalers and have it shipped directly to your customers. In turn, you pay a small commission when a customer buys something from you, and then the wholesaler ships it off to your customer using their own shipping service.
Photo by Austin Distel on Unsplash
Dropshipping is attractive because it requires very little investment.
The only thing you have to invest in is a domain, site design, and your time. If you use Shopify, you’ll need to pay a monthly fee to use the service. But, there are free options with WordPress that you can use that don’t require Shopify. This means that you can get your store up and running very quickly. The barriers to entry are very low; all you need is a storefront, some products, and a few customers. From there, you can grow the business into a sustainable and profitable venture for yourself.
Social media provides a massive source of free traffic.
Social media platforms such as Instagram have played a pivotal role in helping dropshippers get free traffic to their stores. Instagram users love to see real reviews from real people, and it’s a great platform for that. If you are running a dropshipping business, your customers can provide their own product reviews! This is great for social proof and means that you can get free traffic just by using Instagram.
You don’t have to own any of the items to sell them.
All the products can be delivered directly to the customer which means you won’t need to own any of these items and have them in a stock room or warehouse. This means there’ll be no need to ship them yourself or even touch the products, for that matter. All you have to do is choose the products you want to sell, find a wholesaler, and get your store set up. You’ll then buy the product at wholesale prices and mark it up to make a profit. This way, you can fund the business without having very much money to start with. That is the beauty of dropshipping, it allows you to bootstrap your business so that you don’t need a lot of money upfront. The wholesaler even ships the products to your customers, which takes so much of the workload off your shoulders.
It doesn’t require a lot of manpower.
Since you aren’t shipping products yourself, you don’t need to hire people to help you with orders. This can save a lot of money and time. You can run a dropshipping store yourself without the need for help from anyone. This means that you can run the store part-time and even make it your side-hustle while still working a full-time job.
Photo by Scott Graham on Unsplash
Dropshipping does require you to research what’s selling in your niche.
Don’t let all of this fool you; there’s still plenty of marketing involved if you want to make money dropshipping. Sure, there’s not much work involved in sourcing the products, but you must know what products people within your niche are interested in. That means you must study what other stores are selling and pay attention to the hot items that are flying off the shelves.