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Dropshipping

Dropshipping is an online business model where a seller can sell products without having to keep them in stock. When dropshipping, the seller partners with manufacturers who ship the products directly to buyers who have placed their orders from the seller’s website. It is an excellent option for entrepreneurs to kickstart their entrepreneurial journey with low investment and risk.

Advantages of Dropshipping

  • Low setup and zero upfront inventory costs
  • Flexibility to operate from anywhere in the world
  • No logistic headaches such as printing, packaging, and shipping
  • Easy and quick scalability as fulfillment is independent of the size of a physical store or the number of workers
  • Ample scope to offer a wider range of products

With dropshipping, you can sell hot products to your customers, set your own prices, and market your own brand. And the best part is that you don’t have to pay for the inventory until it is sold to an actual customer. But, dropshipping is not a get-rich-quick scheme and comes with its fair share of challenges that you need to address smartly to sustain your dropshipping business.

Disadvantages of Dropshipping

  • Low-profit margins
  • Highly competitive with many sellers selling the same products online
  • Difficulty in building a brand
  • Lack of control over the supply chain

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