Starting a Business Doing Dropshipping

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Many believe that running an online store offering various drop shipped products is one of the best ways to make money while not having to worry about inventory or product fulfillment. All you need to do is sell the product, take orders, and make a fairly good profit. A sound easy doesn’t it. But it is not really that simple and as with anything that sounds much too good to be true, there are always some problems.

Sounds great

Now, in theory, dropshipping does sound like a good idea since it is essentially scalable without you having to do much work upfront – except building some type of website. But when digging down further, there are plenty of complications that you do need to be aware of. Many people believe that opening a dropshipping shop is easy but actually, there is a lot more to it than you might think.

Ecommerce model

Dropshipping is an eCommerce business model on how to dropship and make money with little work. This is where you are able to sell physical products online without dealing with:

  • Inventory
  • Own a warehouse storing products
  • No shipping and handling

Sell for free 

With this business model, your supplier handles all the product fulfillment needs. As the orders come in, you merely alert your drop shipper and they ship the products to the customer in your company’s name. Basically you sell online for free – there is almost zero cost upfront to start this type of online store since you do not have to invest any money on warehousing or inventory.

Starting

You can actually start dropshipping for well under $3 with a “free open source” shopping cart such as WooCommerce. All that is needed is to build a website, free processing of credit cards, and you have all you need to start taking orders immediately. 

But you need to be working with a reliable drop shipper as this is where problems can develop.