Drop shipping is a business model where you sell products online without keeping any inventory. Instead, when a customer places an order on your website, you purchase the product from a supplier who ships it directly to the customer. This means you do not have to deal with storing, packing, or shipping products yourself.
Here’s how drop shipping works:
- A customer places an order on your store.
- The supplier ships the product directly to the customer.
- You forward the order to a supplier (who typically handles the shipping).
- You list products on your online store (through platforms like Shopify or WooCommerce).
Pros of Drop shipping:
- Flexibility: You can run your business from anywhere, if you have an internet connection.
- Low startup cost: You do not need to invest in inventory upfront.
- Minimal risk: You only purchase products when you make a sale, so you avoid the risk of unsold stock.
- Wide product selection: You can offer a variety of products without worrying about inventory management.
Cons of Drop shipping:
- Customer service challenges: If a product is delayed or defective, you are responsible for resolving the issue, but you do not control the supply chain.
- Limited control over shipping times and product quality: You rely on suppliers for both, and issues with those can reflect poorly on your business.
- Lower profit margins: Since you are not buying in bulk, your per-item cost may be higher than it would be if you were stocking inventory.
Should You Consider Drop shipping for Your Online Store or Blog?
It depends on a few factors:
- Traffic Volume: To make drop shipping profitable, you need a solid amount of traffic to your store/blog. If you are already generating some, drop shipping could be a good way to capitalize on that.
- Your Business Goals: Drop shipping can be a low-risk way to test products without a huge investment, but it may take time to build up a significant profit margin.
- Your Niche: If you have a blog or store in a niche that aligns with products you can dropship, it can be a great way to monetize your content.