To dropship or not to dropship—that must have been one of the nagging questions in your brain right now. But perhaps the indecision or the apprehension stems from one thing: you cannot tell the difference between truth and fiction.
To help you decide wisely whether dropshipping is the best e-commerce route for you, let’s break down some claims you probably have heard:
1. You Need to Have a Website to Dropship
No, a website isn’t mandatory. You can sell your products directly to e-retailers, such as Amazon. However, having one provides a lot of benefits.
One, you can sell as many products as you like. You can narrow down competition and direct your leads to your business. You can also have greater control over shipping, product costs, and marketing. Your site, your rules.
Creating a website isn’t as challenging as a few years ago too. For example, you can already find a Shopify web development company, which specializes in e-commerce.
2. Dropshipped Products Need to Be Cheap to Sell
Perhaps you’ve come across strategies that say you should price your products no more than $30. Otherwise, it will be difficult for you to compete.
In reality, the price is relative. What is cheap for one can be expensive for others and vice versa. You also need to consider the price threshold. It refers to the minimum and maximum amounts customers will pay for a product.
Some products also sell well that customers don’t mind paying a lot. In one research, for instance, over 50% of consumers would pay a premium for sustainable goods.
You need not offer your products cheap and compromise your profit margin to compete. However, it pays to know your customers and competitors by heart. It will help you set the right price.
3. Dropshipping Is Great Since It Will Cost You Nothing
Dropshipping is like any other business—you still need to spend money on it. For instance, you have to pay for Shopify web development and other tools. Some dropshipping directories charge a few dollars a month so you can access their list of suppliers.
However, you might find dropshipping to be more affordable than other e-commerce options. You need not pay for space to hold your inventory or buy machines. You also don’t have to hire many people to manufacture goods.
4. Dropshipping Is Dead
As long as the demand for e-commerce grows, dropshipping is likely to stay. In a report by Grandview Research, this segment could achieve a compound annual growth rate (CAGR) of a whopping 28.8% between 2019 and 2025.
Many factors can affect its popularity, such as politics and disasters like the coronavirus pandemic. The latter can make shipping and delivery challenging. These, though, don’t mean that it will disappear soon.
5. Dropshipping Is a Sketchy Business
It’s only suspicious when you deal with the wrong dropship suppliers. These are stores or individuals who will not process your orders or delay the shipment.
That’s why you need to choose your business partner wisely. Excellent directories, such as Worldwide Brands, usually vet suppliers. You can also conduct due diligence using the Internet to learn more about the brand. Do they have complaints from other dropshippers?
Dropshipping isn’t a get-rich-quick scheme. It demands patience, persistence, and commitment like other businesses. But the rewards can be excellent. Thus, let go of your wrong ideas about it and consider trying it.