The premise of dropshipping is simple. You sell products that you do not need to store or deliver yourself. You also do not have to pay upfront costs. Instead, the supplier, which could be a manufacturer or a wholesaler, takes care of the order fulfillment for you. The supplier takes a cut from the sale price, as do you.
It may sound easy, but running a dropshipping business actually takes a lot of hard work if you want it to be successful. While it is great that you do not have to focus on any of the order fulfillment processes, you still need to put effort into marketing, branding, and growth. Due to the ease of setting up a dropshipping company, there is now fierce competition. In fact, some people believe dropshipping is dead. But the vast majority of dropshippers put in little effort. As long as you are dedicated, 2021 is actually an excellent time to start your own dropshipping business. Here is a look at why.
There Are More Tools Than Ever Before to Help You Grow Your Business
People who say dropshipping is passé do not realize that there are now more tools available for dropshippers than ever before to help them grow their businesses. By using the right tools, you equip yourself well to make your eCommerce venture a success. For instance, the dropshipping automation software from SparkShipping provides new dropshippers with plenty of tools and features.
They include full product data integration from the supplier into your store, the ability to connect one product with multiple suppliers to ensure your product is always in stock, the automatic routing of orders, automatic order processing, tracking updates, and the synchronization of your online inventory with your vendors. With so many helpful tools and features on hand, all you need to do is focus on marketing and growing your brand.
Dropshipping Offers Flexibility
Dropshipping is fantastic because a large proportion of your business processes are automatically taken care of. Therefore, it is up to you how much time and effort you put into the business, so dropshipping provides great flexibility. If you want to earn a full-time living, you will have to dedicate a lot of time to the business, but as you will be working remotely, you still have flexibility over your hours. On the other hand, if you just want a side business, you can spend less time focusing on the marketing and growth of your eCommerce venture and still see some profit.
It Does Not Cost a Lot to Set Up a Dropshipping Business
With no need for a warehouse, stock, or office, dropshipping is one of the cheapest business models to use. In theory, dropshipping does not have to cost you anything. You could simply set up a free-to-build website where visitors can buy your products and get on social media platforms like Facebook to promote your company. However, if you do not invest anything in your business, it is much more likely to fail.
If you want to get customers and maintain loyal customers, you need to use professional UX and UI design techniques for your website and methods for increasing your SEO, research your target audience to get on the right social media platforms, post regular informative updates and blogs, and pay for advertisements. The latter costs the most. If you want your dropshipping to gain traction quickly, consider investing around $300 to $400. With only a few hundred dollars needed to kickstart your dropshipping venture, the business model really is one of the most affordable models you can take advantage of.