- Low investment: One of the biggest advantages of dropshipping is that you can launch your own online store without having to sink hundreds or thousands of dollars into inventory.
- Easy to start: Other than finding a supplier and setting up your online store, running an e-commerce business is easier to start and run when you aren’t dealing with physical inventory.
- Low overhead: You don’t have to deal with purchasing inventory and managing or storage facility, keeping your expenses nice and low. You could run your dropshipping business from home from a laptop!
- Location flexibility: No need for paying expensive rents, as long as you have a connection to the internet, your dropshipping business can be run from just about anywhere.
- Easy to scale: By leveraging dropshipping suppliers, the majority of the work will be borne by the suppliers, allowing you easier expansion and scaling with less work.
Disadvantages of dropshipping business.
- Low margins: The biggest disadvantage of operating in a highly competitive dropshipping market means lower margins. Because it’s so easy to get started with low overhead costs, many merchants will start their store with super low prices in an attempt to quickly grow revenue.
- Shipping and returns: If you’re using more than one supplier, as many drop shippers do, this can complicate your shipping costs as they can vary from supplier to supplier. You also lose control over shipping quality and speed.
- Lack of visibility: When you work with suppliers you are also outsourcing some of your customer satisfaction. Someone else is building and sending out a product which is a huge part of the overall customer experience. If anouth on the supplier’ send, the customer will blame you.
Dropshipping is an extremely popular business model for new entrepreneurs, especially in Nigeria. Since you don’t need to stock or handle the items you are selling, it’s very easy for new competitions to popup.
The above guide will help you to know the necessary steps you need to launch your own dropshipping business from scratch but to be extremely successful, you need to constantly innovate in your varieties of products, pricing, marketing and methods of delivery. You can as well get more business tips here.