Dropshipping is when a seller fulfills orders with a third party who then ships directly to the customer. A clear explanation can be found on Wikipedia. Dropshipping is a form of retail business wherein the seller accepts customer orders but does not keep the goods being sold in stock. Instead, through supply chain management, the orders and shipment details are transferred to a third party (either the manufacturer, wholesaler, another retailer, or fulfillment house), which then ships the goods directly to the customer. The principle of dropshipping is relatively simple: for sellers in the dropshipping industry, known as dropshippers, this is about selling products to customers without having the pressure of stocking products and instead allowing a third party to ship the products to their final destination.
But nothing is easy. Now that we’ve talked about the definition of dropshipping, you know the importance of a third party and how you don't need to control the products. Now, let's clarify by talking about the pros and cons of dropshipping.
1. Get off to an easy start without lots of prep
The key data you need to know is that there are currently 7.9 million online retailers in the world, and 2.1 million of them are in the United States. Why can't you be one of them? There must be a reason why so many people do dropshipping. Are they business leaders? Do they all have sufficient business knowledge and experience? Obviously, this is not the case. Some of USAdrop's clients are freelance workers, housewives, and restaurant employees, etc.
You don't need to be too tech-savvy to get started. You don't even need any dropshipping experience! So long as you are willing to take some time to learn the basics, you can do well. USAdrop posts videos on Youtube - helping you create and run your own dropshipping business. Believe in yourself! Just like the other 2.1 million people, you can do it! You can get started quickly and learn the rest as you go along. One way to do this is with Shopify. You can try Shopify free for 14 days. No credit card required.
2. No need to manage inventory
Knowing the definition of dropshipping, this next point is easy to understand. Since the seller fulfills orders through a third party and delivers products directly to customers, the costs of maintaining a warehouse are eliminated, right along with all of the costs associated with running a brick and mortar storefront, purchasing and storing inventory, and employing necessary staff. As with any other form of retail, the seller makes their profit on the difference between an item's wholesale and retail price, minus any pertinent selling, merchant, or shipping fees. You might worry that winning products are in short supply, as too many people stock them. Don’t worry! You can get bulk storage options for free! Just talk with your sales rep. Please take a look at point number six on the USAdrop website here.
3. Wider selection of products
Since you don’t have to invest in building your inventory, you can stay on top of trends and quickly add new products to your store. You can also quickly switch up your offerings without first having to order new items or clearing out backstock. When talking about the products, we must mention that one of the primary benefits of USAdrop is that it improves the product sourcing for your dropshipping services for free. You don’t need to spend extra time looking for products from different suppliers, nor do you need to contact any suppliers. USAdrop will take care of the product sourcing for you. Moreover, our sales team’s experience in the market will also help you locate products faster than doing it by yourself. You can view the details here.
4. Making a profit
If used correctly, dropshipping can significantly increase the success of your business. As you will be cutting costs almost entirely, there is more potential to make a profit.
You will save money because:
·You won't have your money tied up in stock
·You won't have to pay for storage or associated fees
·You won't need to pay for a warehouse, equipment, or staff
·You won't need to buy in bulk – so you won't have unwanted stock to push later.
Have you watched this video of Kamil-The Ecomking, who has 250K followers in the dropshipping industry? The first product he recommends is the eyeshadow palette butterfly, which costs only $3.34, with the selling price being marked up to $19.99. This means that if you sell one piece, you will earn approximately $16.
1. Lack of basic dropshipping knowledge
Although we mentioned earlier that starting dropshipping is very simple, many people will give up if they lack patience, persistence, investment, and resources. This is why most people don't know how to start or quickly fail. If you decide to do something, you must be firm in your convictions.
For those who start, the biggest hurdle is building a website. Many people choose Shopify, Woocommerce, or Wix. These tools have very powerful online store editing functions, but if you are a beginner, I recommend using Shopify because it has a very intuitive drag and drop method and a 14-day free trial. But if you are a beginner and lack experience using web languages, I would recommend using Woocommerce or Wix. With them, you can create a layout very easily.
2. High prices of dropshipping products
There is no denying that price is an important factor for shoppers. Most dropshipping store visitors will search for the same product at another store to compare the prices. If they think they can get the same product at a lower price somewhere else, then they will leave your store. Suppliers who provide high quality products for low prices are very important. USAdrop can help you source products and perform quality inspections to make sure you get a lower price for high quality merchandise.
3. Delayed shipping
A new survey of 2,500 consumers in the U.S. found that those shopping online for gifts heading into the holiday season don't simply want free delivery. They also want their orders delivered quickly. The article also mentioned that the research, part of an annual report from Convey, found that "cost" was the most important factor related to shipping. It was cited by 64.3 percent of respondents, followed by "speed" at 18.7 percent.
The price of the product depends on the supplier. Similarly, the transportation speed also depends on the supplier, namely the logistics supplier.
As you know, choosing the right shipping method is crucial for your business. USPS is USAdrop's best shipping option. USAdrop is a dropshipping company that can ship products to the US quickly, with an average arrival time of 5-8 days. Other companies charge high fees for oversized orders, large volumes, or heavy packages. But USAdrop offers lower competitive pricing.
Is dropshipping still alive?
People often ask if dropshipping is dead. One way to determine if it's dead or not is by searching for it on Google Trends.
You can see that in the past five years, dropshipping has been on the rise.
With the rise of eCommerce, it's only natural that the number of online shoppers worldwide has risen along with it. As it stands in 2021, the number of digital buyers is at 2.14 billion.
This set of data comes from Oberlo's official release. It shows the rising market demand for dropshipping in 2021. As has already been mentioned, the number of online shoppers in the US has also increased in recent years. In 2021, there will be over 230 million online US shoppers—a 1.32 percent increase from 2020. This is quite a large number, and it will keep rising as more people choose online shopping as their preferred shopping method.
It's not difficult to predict that dropshipping will continue to grow. The way forward may be arduous, or it may be smooth sailing. I believe it is more likely to be a challenge. Therefore, everyone must commit and work hard to develop their dropshipping businesses.