3 Reasons Why Dropshipping might be the best option for your first StartUp (Especially if you are low on budget)
Before we even get into the dynamics of dropshipping and how it is going to work, you need to know the basics. These basics will essentially cover what exactly dropshipping is and whether it is a boon or a bane to us. This term belongs to the E-Commerce industry where it was born and is an amazing way to start your own business and earn money.
So what exactly is dropshipping?
It is an E-commerce business model where you sell your products without investing in the inventory or warehouse or fulfillment. It is like you are just a retailer who is retailing what the vendor has to send, and you will let the vendor know that the customer has ordered an item.
All you are going to do is to fulfill the order and then deliver it to the customer’s address. You need not invest any capital at all. This is a way of saving your money by cutting out major expenses in a business. This is a great venture to invest time and do it and is a perfect fit for the small-time or home-based entrepreneurs.
Advantages of Dropshipping
Now that we know what Dropshipping is, it is essential to understand what benefits it can offer so that we can consider it. Let’s take a look at what it has got to offer:
- No Capital or very less capital is needed:
The biggest advantage of this business model is no capital investment at all. Dropshipping in India is probably the best way to help you earn a buck or two. You need not invest thousands of dollars in an E-commerce platform and even purchase the products you want to retail to the customers. You can make the sale with someone else’s inventory, and deliver it to the customers on their behalf. It is either little or no capital investment at all.
- You can get started in a matter of time:
Running an online store is pretty easy as you don’t have to deal with a thousand other things required to do before you start a business. All you need is good Digital Marketing support and a website. You need not worry about managing a warehouse, delivering your orders (shipments and packings), managing the stock or tracking inventory.
- Less overhead expenses:
Whenever you start a business, there are a lot of overhead expenses which we do not take it into account. You can run your business from anywhere without paying any money for this. They are very low compared to the conventional businesses you can think off.
You need to find a good E-commerce platform to set up your online store or you can set up your own website. You are mostly responsible for the damage involved in a product you dropshipped, and there are many cases where you will at blame. It is a double-edged sword where you may get minimal profits sometimes too, this often happens when it is competitive out there.
So, if you are planning to do Dropshipping in India or anywhere in the world, you need to be pretty sure to work for it. Though it doesn’t cost you lot of money to set it up, you should be able to invest a lot of time and understand what to do in the early stages.