Dropshipping is quite a controversial business model in 2021, plagued with horror stories and a badly damaged reputation. Many would suggest, even me, that there are lots of Reasons You Shouldn’t Dropship in 2021. Despite this, dropshipping is still an allure to a large number of people for a number of very attractive reasons.
Even the biggest critics of dropshipping could easily point out the attractive aspects of it, as long as they aren’t too stubborn on the matter. These, at surface value, are quite apparent to anyone and have piqued the interest of thousands…
Taking advantage of economies of scale requires a decent amount of investment, with wholesalers generally requiring a minimum order of a decent inventory size to even get you into the game.
Then you need to have it all shipped somewhere to be stored and fulfilled, normally by a fulfillment center, which will obviously charge for this service.
Next it’s make the sales or fail, with the risk being extremely high. No one wants to be paying a monthly fee to store thousands of a product they can’t ship.
None of this applies to dropshipping. You only pay for the item after the customer has paid you for it.
All of that stuff mentioned in the last section which costs money… yea, get rid of all of those. To start a reasonable dropshipping business, all you really need is enough money to pay for a domain, a sufficient shopify package and some advertising money if you don’t want to go down an organic traffic path.
You could go really cheap by using free platforms for selling too, but this does detract from a professional brand image and has lots of disadvantages. Who knows, they just announced YouTube will soon have a shopping feature built in. Maybe it could be usable in future for free.
Regardless, many have made money dropshipping with very little start up funds. Of course, they no doubt grinded through a ton of lessons before seeing payday.
Using the dropshipping model allows for incredible flexibility when it comes to product testing. With decent dropshipping suppliers providing all the creatives you need to get ads up and out there very quickly, whether it be decent descriptions, quality images or the definitely mostly desired, well put together video.
Having all of this available to you means you don’t need to ship the product to yourself and create creatives yourself… more time and money. You just take everything you need from the supplier, upload as a product to your store, pop open Facebook ads and combine your favorite strategy with their provided media and you’re away!
Once you get in the zone, you can begin to seriously churn out product tests without ever having to see any actual items in real life or pay for them to sit in a warehouse if they fail.
Think about it, if you have to buy a minimum order of every product you want to sell then realistically, how many products can you afford to stock? Don’t forget, unless you’ve got a well built case for a product's viability, backed with data or some sort of kick starting fund, there is a reasonable chance it might not even sell.
Dropshipping doesn’t have these constraints of high risks of big loss and a large investment per product. An efficient product research discipline, combined with a cost effective testing strategy and simply putting in the hours, or building a team to, can allow you to grow a store’s catalog out both vertically and horizontally at a very rapid rate.
I refuse to give a definitive opinion myself on such a hotly debated issue. I just wish to give the readers some food for thought and maybe bring up a point or two that they hadn’t considered. Though this is by no means an exhaustive list of the pros of dropshipping, I hope it brought light to, or reinforced, the enticing aspects of what attracts so many people to the concept of dropshipping in the first place and understand how its siren song has lured many to rocky waters.
I will point this out though, go into your closest Google search input box and type the incomplete search term “Why dropshipping” into it and look at the auto suggestions. How positive are they? I am gonna guess “not very” which leads perfectly to the next article - 5 Reasons You Shouldn’t Dropship in 2021.
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