Dropshipping has been the one of the MMO (make money online) systems to gain traction on the internet in recent times. Everywhere you turn, you can see people getting involved with dropshipping and reaping the financial benefits.
But what exactly is having a dropship business all about? Is it actually possible to generate an online income of $1,000 or even $10,000 a month?
I’m here to answer those questions and more with this article.
I’m big on honesty, so I’ll tell you that I am not a dropshipper myself. I have, however, researched the field extensively and wanted to provide an outsider’s perspective.
I approached dropshipping as if I was someone completely unaware of it and have been impressed by what I’ve found.
Many MMO systems are horrible products or straight-up scams, but the dropshipping model is pretty innovative and actually works. It’s not perfect (I have a few complaints with the system myself), but it’s leagues better than most of the stuff out there.
The money is on the internet. If you can master making money online, you can carve out your own financial future. That’s how you harness the power of online income.
- Dropship Business – Everything You Need to Know
- Can You Actually Make Money with a Dropship Business?
- Risks and Concerns – Be Aware!
- Wrap Up
On that note…
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Dropship Business – Everything You Need to Know
Owning a dropship business is a bit of unique when compared to owning a physical business, but at the same time functions remarkably similar. Think of yourself as a supercenter like Target or Walmart; you are essentially the “retail store”.
You display products for customers to look through and process transactions that generate profit margins. If you don’t know, a profit margin is just the difference between what you earned and the expenses that it took to sell the product.
So if you were like Target, you would have to purchase goods from wholesalers at wholesale price and stock them as inventory; you would then sell these goods at a retail price YOU get to set, which is higher than the wholesale price.
The difference between the retail and wholesale price would be your profit margin.
If that seems confusing, check out the infographic below:
Now, there are certain advantages that a dropship business owner has over a physical retail store that makes it appealing as a start-up business.
First of all, it’s fairly low risk. You aren’t actually responsible for stocking any inventory, and you don’t need to worry about problems like unsold inventory.
Your job is more of acting as the middle-man between the customer and the wholesaler, and as such you are exempt from traditional retail problems.
Second, it’s very cheap (even free) to start. If there is one thing that stops most entrepreneurs from starting their business, it’s startup costs.
For a traditional business, you should be prepared to sacrifice thousands of $$$ in order to get your business up and running.
For an online business like dropshipping, you can start for $0 on Shopify (the biggest and most favored dropshipping platform) provided you have your own website. If not, you can register a domain for $10 to $15 a year.
That’s a pretty remarkable difference in startup costs for a business that has a better chance of success.
Third, your “store” is operational 24/7 and requires almost nothing to maintain. You can sell whenever you want and wherever you want. This is a huge advantage since it means that your ability to reach consumers isn’t limited to certain hours.
My last point is this: you have a large degree of flexibility when it comes to running your dropship business. Don’t like how a product is selling? Take it off your page. Want to capitalize on the latest trend? All it takes it mere seconds to update your inventory.
Since you only order from the wholesaler what is purchased from you, you have the ultimate say in your sales.
So to sum up my points:
- Low-Risk Business
- Cheap to Start
- 24/7 Selling Potential
- Unlimited Flexibility
So again, you have an edge against physical stores while maintaining all the benefits of being a retailer. Dropshipping isn’t going anywhere anytime soon, but it is picking up steam quickly.
Like Uber and Airbnb, the future is moving towards consumers offering services for other consumers.
Dropshipping is looking to join their world-changing ranks (did you know Amazon is looking to replace traditional delivery with dropshipping?), so it might be best to join up now before dropshipping really takes off.
Luckily, Shopify offers a 14-day free trial period where you can build your own dropship business. It’s great for getting your feet wet and seeing if dropshipping is for you.
Click the banner below to start!
Can You Actually Make Money with a Dropship Business?
Picture this: You log off your laptop for the night and head to bed. When you wake up, you notice that you made $300 in sales overnight.
You smile as your day starts off great and reward yourself with a much-needed cup of coffee.
Seems like a fantasy, right? Maybe even unrealistic?
I’ll be the first to tell you that it is definitely possible to earn that kind of money (and more) doing dropshipping, but it’s not a business that you can earn money with on day one.
In fact, there is NO online business/program/product that can make you rich overnight. Sorry, but it just doesn’t exist (well, maybe illegally).
Like all legitimate businesses, a dropship business takes time and effort to build up. The reward for putting in the effort will pay you back substantially, but that’s ONLY if you put in the effort.
Too many people are too greedy and impatient when it comes to earning money. After the “motivation” to succeed online wears off, their business will usually flop and people will revert back to their old, comfortable ways.
If you are looking for instant riches, dropshipping (or any online business for that matter) is not for you.
I don’t wish to sell you a fantasy. That’s not what owning a dropship business is about. You make money when you build trust between customers and market your website correctly. It’s not hard in theory; all it takes is work, persistence, and genuine care for your audience.
So going back to my original question, is it possible to make a lot of money with dropshipping? Absolutely. You make as much money as you want to make. That’s the honest truth.
It’s also the beauty of having an online business. There is no boss to suck up to, no rules to follow, and nothing to do that you don’t want to do. Your success is directly tied to your efforts.
Risks and Concerns – Be Aware!
Dropshipping is ultimately a business, and all business feature an element of risk. Nothing is certain in the world, and that’s never been truer than nowadays.
So even though owning a dropship business is a low-risk investment, you have to remember that it’s still a risk.
Not to mention that it can become a bigger financial drain if you aren’t paying attention.
Shopify simplifies a lot of the technical mumbo-jumbo so that it’s easy for anyone to get started with dropshipping. That said, they also provide extensive training and detail for those who are interested in becoming a dropshipping master.
If you pay attention to their lessons, you can mitigate some growing pains you may endure.
Here are some things that can happen to you if you decide to ignore the warning signs:
- Loss of Money
- Wasted Time
- Wasted Energy
- Constant Frustration
- Getting Scammed
- Getting Penalized or Sued (more money lost!)
It’s easy to get caught up in the details and lose focus of the bigger picture. This applies to all types of online businesses but especially applies to Shopify and dropshipping. Buying themes, buying plugins, buying extensions, and so much more can really put a hurt on your wallet.
All of those purchases are unnecessary, as a free theme with free plugins and extensions would work perfectly for those starting out anyways. Don’t get caught up in the “shiny new things”.
Also, do NOT buy things that you THINK will boost sales without tons of prior research.
Buying traffic in bulk, for example, will very rarely generate any sales since you likely just purchased bots without knowing (even if the traffic bulk website owners say they don’t use bots).
Buying website comments or reviews will usually result in your website being penalized or outright terminated.
Stay away from deals that seem too good to be true. Exercise caution and be wary; scammers are very clever these days.
There is also no guarantee that you will succeed with dropshipping. If you put in the effort, it is highly unlikely that you will fail in the long run. But always remember that dropshipping might not be everyone’s cup of tea. There are other MMO systems out there that might suit you better.
I like this one the best, personally.
You must use good judgment when guiding your online business to success. A dropship business is no different.
Overall, there is a lot of merit towards owning a dropship business. You are blessed with unique advantages and privileges that physical retail stores could only dream of.
Dropshipping can assist you with your 9-5 or even become your full-time job. It just depends on how far you want to take your online business. You are in the driver’s seat, which means that you reap the benefits and consequences of every decision that you make.
That said, dropshipping is a great way to get started with e-commerce. You will learn valuable skills that would help you not only in dropshipping but also in other MMO systems should you decide to branch out.
Shopify is an excellent resource for all things dropshipping, so I highly recommend checking them out by clicking the banner below!
If you decided that dropshipping is not for you, that’s okay too. There are many, many ways to make money online. As for me, I enjoy affiliate marketing since it’s one of the best ways to passively generate income online.
Interested? You should check out my review for more details or click the button below to get started.