Many people want to how to start a dropshipping business. Dropshipping is a great way to make money from home. Hundreds of thousands of people have successfully used dropshipping as a way to replace their jobs, make money on the side or fund their retirement accounts.
Dropshipping is a popular topic in the work from home world. Particularly among people who are looking to sell on Ebay.
Dropshipping has been around for years. In fact, many of the top mail order catalog companies, have been using this system to make money for decades.
In case you are not familiar with dropshipping, here is an overview of the how the process works.
- You promote products and take orders directly for a manufacturer(s)
- The manufacturer(s) stores the merchandise
- Once a sale is generated, you forward the order to the manufacturer
- The manufacturer fulfills the order and ships the product directly to the customer
- Once the transaction is complete, you receive your profits out of the sale price
As with any business model, dropshipping has its advantages and disadvantages.
The Advantages of Dropshipping
The key advantage of dropshipping is that you can start an eCommerce business without the expense of investing thousands of dollars upfront to buy products.
Unique advantages include:
- Short learning curve. It’s easy to learn how to start a dropshipping business.
- It’s extremely easy for you to get started.
- Low overhead.
- You can work the business from anywhere.
- You don’t have to deal with inventory.
- You will have a vast array of products to choose from.
- Almost every product you can think of can be dropshipped.
- It’s one of the few business models that is easy to grow.
The Disadvantages of Dropshipping
- You will face cutthroat competition.
- You will have to deal with manufacturer inventory issues and supplier errors.
- You have no control over shipping expenses.
- You will have to deal with customer complaints and shipping issues.
- This area is unfortunately, filled with scams and unscrupulous manufacturers.
Learning How to Start a Dropshipping Business
If you want learn more about a dropshipping business, here is a great video tutorial from the experts at Shopify.
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