Is Dropshipping Profitable Business?
Drop shipping is a low-risk venture whose profitability depends mostly on your type of product. You will be successful if your niche or product is in high demand.
Dropshipping has help many people to escape poverty by putting food on their tables.
How does dropshipping work?
Dropshipping is a business model without actually having no inventory, dropshipping has three main stakeholders engaged in its process: the supplier, the customer and the shipping company. If you are able to connect the dots it means that you will start to make a lot of money online.
You as a Dropshipper sets up an online store displaying some products: for instance, catchypet.com
On this online, a buyer navigates and discovers the item they are looking for and he immediately ordered.
You as a Dropshipper tells your supplier on AliExpress that you received a new order. Then the supplier will arrange the product, packaging it and delivering it to your buyer.
Is Dropshipping worth it?
Dropshipping is a nice idea and a lucrative business because making money in dollars means a lot for us. Think about making a daily income of $100 which is equivalent to N40,000. which is above our Minimum wages.
Here are a few reasons why it important to start Dropshipping Business:
- Cost-effective: Dropshipping can help save both starting up expenses and later expenses for New businesses. It is a good business model that is budget-friendly and easy to pocket that can push your business to a new point. This is a very useful decision for developing nations like Nigeria.
- Lowered risk: In Dropshipping, the risk of loss is so low compare to other businesses because you don’t stock any products. Only when the demand occurs will a product be purchase. This can be useful for us to look into because you won’t attract enormous losses given the shipping expenses.
- Internet Penetration: Internet penetration has increased in most countries over the past years, making online sales a very recreative deal. People access the Internet with their phones, and this gives them comfort that’s while they prefer to order stuff online instead of buying them from offline stores.
- No Inventory hassle: In Dropshipping there is no pressure to keep the inventory of each of the product and then aggressively market it to make sure it’s all sold-out. It relieves the Dropshipper unnecessary headache as you are not directly liable for product sourcing.
- Functions: If you notice, dropshipping features can be readily automated, making it easy to focus on other business functions such as Marketing, Sales, branding, and company growth. Functions such as pricing, monitoring orders, putting orders, marketing and performance review, promotions, etc. can all be automated with software and do not require you to regularly handle them.
- Purchasing Power: Another important trend in the world is the rise in buying power owing to higher disposable revenue. Individuals want to purchase more and want to know products that are trending around the world.
- Niche Products Availability: Gadgets, Electronics, clothing, books, goods and so on are becoming high in demand because this is mostly what individuals want. For example, if you sell t-shirts with famous only Quote or give signed celebrity posters, it can make your alot of business profit