A review on Starting a Drop Shipping Business, Part 1
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This is an article series about drop shipping. This series consist of many information about drop shipping. So far the topics that I covered are :
Part 1 : What is drop shipping and the advantages of drop shipping.
Part 2 : The Disadvantages of drop shipping business and should you start it?
I hope you can enjoy this series and please feel free to give your opinions on… whatever you think about. I really appreciate it. 
What is drop shipping?
You might hear about the words drop shipping before. This is a dream for many internet entrepreneurs to make money from internet or from their own house.
In drop shipping, you are a middleman. Your jobs are market and sell a product over the internet. After someone purchases your product and you receive the payment, you place an order of the product to your drop shipper. Then the drop shipper will ship the products to your customers. They usually charge you the wholesale price of the product plus shipping cost. So you make money from the difference between the selling price and your costs (product wholesale price and shipping cost).
Sound great, right? This is why Ebay business becomes so popular because its business model was developed base on the theory of drop shipping. Actually there are several advantages of this online business that make it become one of the hot discussed topics.
Advantages of Drop Shipping
Ok, there are a lot of advantages that making drop shipping becomes a so attractive online business that many people want to start. Here is some of the main one that I think you should know and understand:
- No Inventory to hold. Drop shipping doesn’t like the old traditional small business where you have to hold a certain amount of stocks to run the business. In drop shipping, all you have to care is promotion to attract customers to buy and payment collection. After that your drop shipper will look after the order fulfillment. So you don’t have to hold any inventory as drop shipper will handle it for you.
- No Shipping Hassles. Drop shipper will handle this for you. You should be thankful for this.
- Low Modal Business. To start a traditional small business, you have to dump a certain amount of money in it. But in drop shipping, the story is different. All you have to do is buy a domain name and get a web hosting which is in a very low price. (around $20). Maybe you can hire someone to design a web page for you. This may cost you some money, but it definitely worth it to free up your time for marketing. After that your first online business is ready and you can start promoting your products to the internet world.
- Your risks are low. Since you are not holding any stocks, your risk in this business is quite low. You don’t have to worry about sales. But of course if you want to make money, you must try your best to boost the sales volume. But if you sales are low, especially in starting, you don’t have to worry because you have no burden in this business.
- Work at home business. In a nutshell, drop Shipping allow you to work in your house!
There are many advantages that I can think about. However I will not list them all here instead I just listed down some of the most beneficial advantages above. Now you know how attractive a drop shipping business is. But please wait a minute before you start jumping into this online business. There are several disadvantages of drop shipping that you must care about. I will discuss this in next part which will come out not so soon….
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[…] Part 1 : What is drop shipping and the advantages of drop shipping. […]
[…] Part 1 : What is drop shipping and the advantages of drop shipping. […]
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You can become a dealer for a certain product, study the product’s specifications, price and quality, take a look at demand and competition and offer it on eBay. Doing business on eBay, especially if you’re using dropshipping as a method,Can give you good returns.