A quick and straightforward answer to that is, Yes Dropshipping is worth it. But it is not as simple as it may seem. It is only worth it if you are determined, persistent, have some budget, an entrepreneurial drive, and eagerness to learn.
If you’re new to the dropshipping business and thinking how a business model with little investment, no inventory, direct shipping to customers, is still profitable and worth it? Well, over the past years, this business model has seen a massive rise. Many entrepreneurs, e-commerce enthusiasts, newbies have jumped on to this business and have made it even more competitive.
For someone new, it is very easy to start a dropshipping business. There is so many information, guidelines available that it seems very easy to do. But with an increase in competition over the past couple of years, it has become too competitive to sustain at a small scale.
It is because of this reason that many people are questioning if it is a good business model or if it’s worth it still.
Things about Dropshipping You Should Know
Before going into many details, here are a few things you should know about dropshipping which are essential to understand where this business model stands
It is not easy
Dropshipping business is not easy. It may come as a surprise, but it’s a fact. No matter how much information is available on the subject, or how many gurus make it look simple and easy, it is not.
As a matter of fact, no business is easy. Everything requires, patience, persistence, learning, failing, making improvements, and above all, determination to succeed. So, if you’re thinking setting up an online store is all it takes to succeed and make you rich, you’re wrong. The competition in the market is high, and only opening a store is not enough.
Learning is the Key
As mentioned in point 1, merely opening a store is not enough. In order to succeed in online business or any business, continuous learning is the key. Understanding the trends, analytics, market competition, and customer needs are essential to learning if you want to be successful with dropshipping. You need to learn how to do it and do it right.
Don’t be overwhelmed by the hype
If you’ve been intrigued by the numbers and money made facts shown by few people online, then you’re not thinking correctly. While it may be true for some people to have made huge money out of this business in days, it’s not a norm (could still be true).
Spending a significant amount on ads and then getting a five-figure return is not how you do this business or make money out of it.
It is still a profitable business
With so many people entering the e-commerce industry and dropshipping, it has become highly competitive, but it’s not saturated. You can still make a significant profit from this business.
Amazon started as the first dropshipping company. Considering Amazon’s size today, it is quite evident that there are opportunities for others to enter this business and be profitable too. The key here is to source quality products at a cost-effective price. And with platforms like Shopify and marketing platforms like Facebook Ads, there will always be opportunities to sell online.
How to be successful with Dropshipping
Dropshipping would not have been this popular if nobody made money out of it. Like any business, it is hard work, but it eventually pays off.
It can be a profitable business if done correctly, and it can help you make significant money with a minimum initial investment. It is not simple, as others may want to make you believe, but this should not put you off from trying.
As the industry has become more competitive, it needs more hard work than before to be successful. Here are the key points that will help clear any doubts you have about the dropshipping business model.
Low upfront investment
Most businesses fail even before they are established because of the high initial investment. Fortunately, with the dropshipping business model, there is a low upfront investment to set up an online store. With no need to keep inventory, deliver products, hire staff, you can start from anywhere, all you need is internet access.
The only investment you make is on a website/online store, or a portal to take customer orders, a software to coordinate with suppliers, and that is it.
To stand out from the competition, it is important to pick a niche and focus on it to provide customers a valuable experience. For that, you need to make marketing efforts to reach out to your niche giving your customer a whole lot more than just being an online store. You can even choose your selling medium and can sell through social media or dedicated portals
Ease of Automation
As the dropshipping business has gained popularity, it has also eased the automation of the business process. Apps like Oberlo can help automate many aspects of the business process and can help improve the efficiency of the business cycle. It can help you save time, make fewer errors and easily manage payments and delivery.
Being successful with dropshipping does not happen overnight. You have to work hard to make it happen. Promoting the right products to the right customers is the key. And with the ease of automation, you can invest more time on marketing efforts to attract customers and provide better customer support which is also essential for a successful business.
Yes, without a doubt, dropshipping is worth it. But it won’t be if all you’re doing is listing items on your online store and expect them to sell without making any effort. E-commerce is not easy, the internet is crowded, the competition is getting fierce, and you cannot set yourself apart unless you make an effort.
Online platforms like Amazon, Shopify are a great place to start but to be successful with the dropshipping business you need to learn and understand the changing market dynamics. To be successful, you must not be afraid to work hard. Invest your energy and efforts in utilizing profitable products, focusing on your customers wants, and directing your efforts towards right marketing strategies.
Like any other business, dropshipping business requires your commitment, patience, and hard work, and in the end, it’s all worth it. So, go ahead and give it a try.