Is it a Good Time to Get Into eCommerce Drop Shipping?

Launching an eCommerce business would normally be a challenging feat because of the startup costs, fulfillment and technical expertise required. Fortunately, drop shipping gives the ‘little guys’ the opportunity to launch a full-fledged online store without all the risk and difficulty. Drop shipping eliminates inventory costs, makes it easy to manage an eCommerce store and also help you identify your biggest sellers.

First off, what is drop shipping? Drop shipping is a method of product fulfillment where you do not have to order batches of products or have the space to store your inventory. When working with a drop shipper, all you have to do is to forward your customer’s receipt and they’ll fulfill and ship the order for you. It’s an economically viable way to run an eCommerce business because you don’t need to invest in a fulfillment service or stock up on inventory that may or may not sell.

The eCommerce business model has been growing as a result of drop shipping. But many entrepreneurs are wondering if it’s a good time to get into the business. Despite the fact that the business is very competitive, eCommerce is still a great business opportunity. There are several reasons why it’s a good time to get started with the eCommerce model.
ecommerce-warehouseReason #1: The Risks are Very Low

It’s easy to test whether or not your eCommerce idea will work or not. You can build a small site with a few products and send some pay per click traffic to see if it ends up being profitable. It would only cost you a couple of hundred dollars, maximum two thousand dollars if you have the pockets. The easier way to find out if your idea will work is to research your market to see if there are similar vendors and see if they’re having success. Either way, it’s very affordable to start the business and even if your idea doesn’t work, you won’t lose much money.
Reason #2: Third Party eCommerce Solutions Make It Easy

There are a large number of third party eCommerce solutions that make it a breeze to build your own site, manage it and even market it. This includes services like Shopify and stand alone plugins for open source content management systems like Magento, WordPress, osCommerce, etc. The cost of these service can range anywhere from $50 to $100 a month (for closed services), making it very affordable.
Reason #3: You Can Sell a Large Number of Products

There are a large number of drop shipping companies to work with as well as a large number of products you can sell. This means that you can try out different niche markets, test multiple products to find hot sellers, and sell your own unique line of products. Because you’re working with a drop shipper, you can focus on marketing and leave the rest up to them. Some will even take care of customer service for your business in return for a small monthly fee.

Like every business model there are pros and cons. Paying drop shipping companies for their services will cut into your profits. You also need to find a reliable drop shipper. The industry is known for unreliable and sometimes unethical service providers. But once you do find a reliable service provider, you’ll be in good hands. The only challenge left aside from marketing will be making sure you stay profitable after drop shipping expenses.

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