8 Good Reasons to Initiate a Dropshipping Business in 2019
Dropshipping isn’t a new business idea, it has been around for years. Those running this business have earned a lot in recent times. Well, every business demands huge investments and then consistent hard work to advance or grow. In the case of dropshipping business, there is a less burden of such requirements. Dropshipping suppliers in the USA have managed to generate high profits. Drop shipping wholesalers target the wholesale customers in particular in order to boost their business profitability. Hence, initiating this business is a great idea!
I believe many of you are interested in initiating the dropshipping business. A few of you may believe it’s not that cool. Since I have been in this business for years, I would suggest all of you start this business because it is profitable. And I have plenty of reasons to validate my point. But, before we explore the reasons to start a dropshipping business, it is important to first explore what dropshipping is!
Dropshipping is a technique of order fulfillment where the dropshipper does not keep items in the stock. Rather, he depends on the wholesale supplies for shipping the orders to the customers. The dropshipper directly contacts the customers, but he does not have a physical store where the products are placed. Hence, when a customer places an order to him, he gets the payment and then transfers the order to the wholesalers. After issuing the purchase order to the wholesalers, he provides the shipment details. The wholesalers would then ship the products to the customers. Meanwhile, the dropshipper earns his profit.
In 2019, you have plenty of business options and ideas, but none of them is more advantageous than dropshipping. So, here are the 8 good reasons to initiate a dropshipping business in 2019.
1. Lowest Initial Investment
If you want to succeed in any business today, your initial investment has to be higher. Many businesses demand too high starting cost which is often beyond your budget. This is why you often drop the idea of starting a business. However, not the case with dropshipping. It is one of the businesses, or perhaps the only business that requires the lowest initial cost. When you are initiating a dropshipping business, you don’t need to have a physical location. Also, there is no need for a retail store and even no need for hiring employees. There are quite a few necessities at the startup of this business.
As a dropshipper, you just need on a laptop, a website and small spending on marketing your website. You might already have a laptop or computer. However, you need to build your website. Hence, all the spending would be on the website. Building a website is not that expensive though, you can even take assistance from online platforms. Anyways, you need to spend some amount on marketing or SEO of your website. Your website would serve as your store and you will be encouraging the people to buy from you through different marketing tactics. Hence, the overall starting cost for dropshipping business would be extremely low.
2. No Risk At All!
Risk is associated with almost every business. There is no business in this world which is not vulnerable to risks. However, there is an edge with dropshipping that you have no risk at all. What type of risk am I talking about? Yes, the financial risk, the loss! It has happened on many occasions that after business suffered a loss, it was impossible to get back on the track. Sometimes, risk destroys businesses, but it is hard to stand tall against it. When it comes to dropshipping, there is no risk associated with this business. In other words, there is no risk at all.
Dropshipping does not involve huge investments, and hence, the risk of losing money is minimum. What you do in this business is that you just develop a website and spend on SEO of the website. There is no other cost involved. You don’t have anything spent on the location or products. You don’t buy products, rather just forwards the order to the wholesale suppliers. From taking the order and payment from the customer to transferring the order to the wholesalers, you haven’t spent anything. Instead, you have just earned some commission. Therefore, you are never vulnerable to risk.
3. Less Effort and Time
If you are running your own business, you know damn well how much time and effort it takes to lead your business to success. You spend hours in your office in an attempt to make your business profitable. For example, if you are running a wholesale store that sells cutlery products, you have to give a maximum of your time and put in a lot of effort in order to succeed. You will be managing the store, keeping track of your inventory, overseeing the marketing strategies, analyzing your business, keeping track of your costs, and watching your workers, etc. Hence, there will be a huge responsibility on your shoulders and to fulfill that responsibility, you will need to sacrifice your time and effort.
Dropshipping is a business where you won’t need to spend hours in the office and administering different operations. You are welcome to stay at home and just do some search engine optimization. Just a couple of hours on the laptop are enough at the start and when the workload increases, still you just need to receive the orders and transfer them to the wholesalers. There’s nothing else you need to do. Therefore, you have plenty of time left for doing your personal work or innovating your marketing tactics.
Flexibility is a huge advantage with drop shipping wholesalers business. First of all, you have don’t require a particular location. When you have a physical store, you are more keen to target the customers nearby your store. This reduces your access to a greater market. But, with dropshipping, you can be flexible. You don’t have a specific location, so you can target the whole country or the whole world. This will raise your access to the market as well. For example, if you are residing in Pennsylvania, you are not restricted to the wholesalers in your respective state. You are welcome to partner with dropshipping suppliers across the USA. Also, there is no limit on how many wholesalers you can contact. You can partner with as many as you can to the extent you are flexible. More drop shipping wholesalers mean a higher number of customers, a higher number of products and greater access to the market.
5. Enhanced Product Offerings
This is where the dropshipping business has an edge over all other businesses. If you are running a store, or you have your own warehouse, you are limited to specific products. Any business in this world is restricted to the provision of its respective products and services. However, in dropshipping business, you are free to enhance your product offerings to an extent you want. You are never limited to a few products. There is unlimited number of wholesale suppliers that you can contact. Different suppliers would have different products, and hence, you will have the most diversified offerings!
It is often recommended to the dropshippers to increase their products or include a diverse range of products. This is possible by communicating with more and more wholesalers. You can check their products and then add them to your list of product offerings. If possible, try to add different kinds of products because it would attract more customers. However, this privilege is only for dropshippers. There is no other business that enjoys such a luxury.
6. Business Convenience
Another reason to initiate a dropshipping business in 2019 is that it is the easiest to operate business. No other business provides such convenience and ease. We all know how many hardships we tend to face while pursuing our businesses. Specifically, when the business is newly established, the challenges are immense. For example, you have to manage the hardest of the tasks, such as administering the employees, taking a gander at the activities being performed, analyzing the business progress, and keeping track of all the business operations. On the other hand, dropshipping is a convenient business.
If we count, there are hardly two or three tasks that a dropshipper needs to perform. Of course, you don’t need huge personnel to deal, not many operations to check, and no office staff to manage. All you need to do is do the search engine optimization, marketing and act as a middleman between the customers and the wholesalers. Another thing you need to do is to manage the website, which is perhaps the easiest task. Also, you need to receive the orders and then forward the order and details to the wholesalers. There is no difficulty in doing these tasks as they are the easiest to accomplish.
7. Increased Customers
A huge plus with dropshipping is that the number of customers tends to increase. Once you increase your product offerings, your customers enhance automatically. Remember one product has different customers and the other has different. When you have just one type of products, you can only target the customers that are demanding that product. Or, you will be visited by the customers who want that particular product. But, if you add another item, more customers will join you. They would be searching for their required items. So, if you contact more and more wholesale suppliers in the USA, you are likely to increase your customers.
8. Massive Profits!
Massive profits are promised in the dropshipping business. If you are smart, you can gather as much money as you can. Basically, the dropshipping is offered by the drop shipping wholesalers who want to expand their business. The wholesalers wish to increase the number of buyers and hence they seek dropshippers for this purpose. Therefore, they give you an opportunity to make mammoth profits. They allow you to earn your profit in the shape of commission. Remember, wholesale prices are often too low compared to retail prices. So, if you start a retail store, you can charge retail prices from the customers and pay wholesale prices to the wholesalers. Hence, the remaining amount would be your commission or profit.
If you want to maximize your profit, make sure to contact as many dropshipping suppliers as you can. Keep in mind that the prices of different wholesalers won’t be the same. You will have to figure out the cheapest among them. A few wholesalers have extremely reduced prices. For example, Wholesale Blades is a wholesale supplier of different self defense weapons, knives, and swords. Their prices are almost 90% less than retail prices. So, this 90% can be your profit margin if you make a deal with them. With such a high profit margin, your dropshipping business would grow at a rapid pace. So, at a low cost, you will be gaining massive profits. Indeed, a solid reason to start a dropshipping business.
So, how many of these reasons inspired you? In my opinion, these advantages are enough to encourage you to initiate a dropshipping business in 2019. Dropshipping is more advantageous than any other business. There is low initial cost, greater profits, a greater number of customers, and no risk associated. Want to run a profitable business? Start dropshipping! Go ahead, there’s no stopping you!