Dropshipping is gaining popularity among millennials. This business model doesn’t require big capital to start. But it’s not a business model for the faint-hearted. Most entrepreneurs who jumped into dropshipping didn’t have a clue what are things in store for them. The end result, they quit too soon.
What do you expect in highly competitive niches? Off course, low-profit margins. People would buy from an online shop that offers the cheapest cost possible. We all want to have a good deal and save money on electronics. It’s a cut-throat competition. But don’t lose hope, you are competing globally which means the market is big enough to accommodate online sellers like you.
As a dropshipping company, you’ll be relying on your suppliers. If they have inventory problems, it’s your problem. So bottom line, finding the right suppliers to work with is crucial. Also know that you will not only be working with one supplier, unless, you are offering a single product on your website (we don’t recommend this). Before you even advertise a product, make sure that you have a reliable supplier who can take on the volume.
Many people are under the impression that drop shipping is stress-free, this is so far from the truth. As a drop shipping company, you will handle complaints from the customers, disputes, and so on. It’s not a perfect business model after all.
Those testimonies you saw on youtube and other online platforms are true. There are many beginners who had no idea how this works earned a good amount of money. Some of them are already millionaires and now can afford to start any business they want. Those online shops like lazada and zaloraare making good profit every day. Is it worth it? Big resounding yes. As long as you know what you are getting yourself into and you know what to expect, it’s a good business model to take, especially if you don’t have big capital.