In late September, experts released some concerning data. Nearly seven months into the crisis, about half of Americans who lost their jobs in March still have yet to find a new one. Are you still searching for a way to make an income? Read this droppshipping for beginners guide if your considering dropshipping in 2020 and beyond.
If you’re struggling to get by, then you might be interested in learning about dropshipping. This type of business can help you earn money while you stay safe at home.
Dropshipping for Beginners: How it Works
Imagine having an online store where you didn’t have to keep inventory in stock to operate. If that sounds attractive, then you’re in luck. That’s exactly how dropshipping works.
First, you’d set up an online shop. When a customer orders a product, you purchase that item from a third-party. That third-party mails the product directly to the customer.
As the store owner, you never have to come into physical contact with your products. You also won’t have to deal with shipping or delivery costs, either. Instead, you simply earn a profit by selling the third-party’s products at a higher price than you purchase them for.
How to Start a Dropshipping Business
So, how do you start a dropshipping business? Your first step will be determining what to sell. You’ll need to find a supplier who offers products you’re interested in. Next, you’ll need to build up your online marketplace.
Once you’re set up, it’s all about fulfilling your customer’s orders and earning a profit.
Are you worried about initial start up costs? Obviously, a new business doesn’t have a credit history yet, which could limit your funding options. Check out these four alternative funding options if you need help getting started.
Is Dropshipping Profitable in 2020?
Since the onset of the pandemic, 40 million Americans have lost their jobs. Due to lockdown restrictions, millions are now scrambling to find ways of earning money from home. If you’re included in that statistic, then dropshipping is a viable option you should pursue.
Dropshipping is still profitable in 2020. Statistics show that the average eBay dropshipper earned $2.67 on every sale last year!
The pandemic situation has resulted in a major reliance on online shopping. As a budding business owner, that is welcomed news.
Pros and Cons: Is Dropshipping Right for You?
What would your ultimate dropshipping guide be without a definitive explanation of the benefits and disadvantages of dropshipping? If you’re hoping to make an informed choice, then you need to know all the details. Here are a few advantages to consider:
- Doesn’t require a massive initial investment
- Quick and easy to set-up
- The customer pays you before you invest in products
- Minimum overhead expenses
- Wide variety of products you can sell
- You can work from home
That explains why dropshipping is so popular, but there are some downsides to dropshipping, too. You’ll need to consider these cons before starting your own dropshipping business:
- You have no control over your wholesaler’s inventory
- You’ll likely experience some shipping issues
- Low profit margin
- Your suppliers might make an error that reflects poorly on your business
- It will be harder to build up your own brand
In a nutshell, dropshipping is a fairly easy way to make money without a huge initial investment. It will take a lot of work, though, and you likely won’t become an overnight success.
Your Dropshipping Goals for 2021
You might know all the best tips on how to find a job, but there is only so much you can do during a worldwide pandemic. Certain industries, like the restaurant business, have been forced to limit their staff, which might mean your typical position isn’t available anywhere right now.
If you’re being forced to adapt, then moving towards e-commerce is a good move right now. Use this ultimate dropshipping for beginners guide to help you not only weather this storm but come out ahead!
Do you think dropshipping could be profitable for you? Let us know your thoughts in the comment box below!