20 Oct Why Dropshipping Is the Best Platform for You to Start an Online Business As A Newbie – JetSetFly
E-commerce is growing. Did you know that according to the New York Times, 8.4 percent of retail sales take place on our computers?
It is convenient for customers, and it is cost-effective for companies.
An online retailer can sell more products that their physical retail counterparts with fewer workers. In fact, almost 75 percent of e-commerce companies employ four or fewer workers — and people are losing their jobs because of it.
While e-commerce is currently responsible for some 178,000 jobs, department stores have lost almost 450,000 positions — and that trend is only going to continue.
A type of e-commerce called dropshipping is gaining ground.
It requires even fewer employees than traditional e-commerce and less of an investment.
What Is Dropshipping?
Dropshipping is a type of retail fulfillment in which you, the merchant, never touches the product. When a customer buys from you, the order is sent directly to a third-party manufacturer or distributor. That company packages and sells the product for you and ships it to the customer directly.
Not only do you not have to box anything up or ship it, you also do not have to maintain any inventory.
And that is huge.
When you are in e-commerce, you may not have to maintain a physical retail location, but you do need to purchase and store inventory as well as packing supplies. That can mean thousands of dollars in capital that you need to supply upfront — and it comes with a big risk.
If people stop buying your products, you could be left with thousands of dollars of unused inventory, taking up space and tying up your investment capital.
When you become involved in dropshipping, you remove this risk completely.
In dropshipping, you don’t have to pay for a single piece of inventory unless you make a sale. In most cases, the money will automatically be transferred to your account so you are out nothing.
As a result, you can start a dropshipping company without much money upfront and you don’t have to use earned dollars to fund your inventory.
The Overhead Is Low
The overhead with drop shipping is very low because you never have to touch a physical product. That means no paying for a warehouse or managing storage. You don’t have any inventory to track or account for. You won’t have to order products or manage stock level.
When overhead is low, it can give dropshippers more free time to do the things they want to do in life, because they have no physical commitment. Dropshipping companies also don’t have to pack or ship orders. They don’t even have to handle returns and the inbound shipments that accompany them — and that means FLEXIBILITY.
When you choose dropshipping as a business, you can run your company from anywhere in the world that has an internet connection — but dropshipping comes with another important advantage.
You can sell whatever you want.
Dropshipping lets you offer your customers a wide array of products and to change that product offering whenever you like. If you have a patterned sock store and something like fidget spinners become the next big thing, you can start selling them.
Most manufacturers and distributors will let you list ANY item they sell. You never have to worry about shifts in consumer preferences or up-and-coming trends. Your supplier has you covered — AND you can scale your operations as big as your manufacturer or distributor can handle.
In other words, sell wool sweaters one day, laptop bags this week and party dresses next month. It doesn’t matter. You can sell anything and change your mind as often as you like.
Dropshipping is a simple and lucrative way to start making money online