Top Reasons Why You Should Start An Online Business Now

Drop shipping business is radically different from traditional retail outlets as

you do not operate from a physical business premises and that completely

changes how you operate. Drop shipping also differs from conventional e-

commerce business in that these businesses buy inventory and send out

purchases to clients from their inventory.

Drop shipping has an impressive number of benefits that are specific to the

drop shipping business model.

Less Capital Investment

Yes, you need some capital to start a business. The big difference is that you do

not need huge amounts of money to start your dropshipping business. You only

need some cash as a safety net during the time you work towards getting your

company operational. All businesses have minor running costs, and you need to

be aware that you should set some money aside for web hosting costs and any

fees payable for making use of dropshipping platforms. It is wise to have cash on

hand for incidental expenses. Keeping this in mind will minimize stress and you

can focus on getting your business off the ground.

Easy to Start Up

You do not physically carry stock so you do not need a warehouse to house

inventory. This means you have no costs associated with a warehouse, such as

property rental and warehouse equipment. This also eliminates all the

complications inherent in managing a warehouse. No valuable hours are lost in

re-ordering stock and having to keep strict accounting of inventory movement.

You are not responsible for packing, labeling, and shipping of the products you

sell, nor do you handle inbound product shipments or returns. This makes it far

easier to start up your business and removes the logistical nightmare ofpackaging and shipping from your life.


Overheads are a nightmare that companies deal with on a daily basis. The

dropshipping business model eliminates the majority of overhead expenses as

you can start and run your business from home. As your company grows, it is

normal that your overhead expenses increase, but your costs will always be far

below the overhead costs for a traditional retail outlet.


Having a dropshipping business gives you most flexibility regarding your

location and you can run your business literally from any place where you have

access to the internet. You have no need for fancy and expensive offices to

impress potential customers; you just need a laptop and internet, which is ideal

as you conduct business with equal ease whether you sit at a desk at home or


Global Market

E-commerce and using the dropshipping business format gives you access to

markets around the world; you are not limited to local products in your country.

Dropshipping is done with equal ease from any supplier and manufacturer

worldwide. This is very appealing to customers as they have a much wider range

to choose from than would ever be possible from any retailer in their area.

This graph shows the immense popularity of e-commerce around the world.

With the online retail platforms, you gain easy access to global markets for your

dropshipping business.

Extensive Product Availability in Your Niche

Niche products can often be very restrictive as to choice of what products you

can add to your e-commerce business as only certain suppliers may carry the

products that you need. If you were only restricted to local markets, this would

cause huge problems, limit the growth of your business, and negatively impact

on your profit margin. Access to global markets is a total game changer for niche

products, making this a top benefit for all sellers that specialize in niche


Substantial Lower Risk Factors

Dropshipping instead of the more conventional e-commerce business model is a

huge benefit in lowering the risks of monetary loss to the dropshipping seller as

you do not run the risk of not being able to sell the inventory you have already paid for.

Should you hit a slow time and not make a sale, the only monetary lossis the potential profit you could have made on a sale.

Another factor that lowers the risk is that you only place the order with your

supplier once your customer has placed an order with you and paid for it. You

use the money already paid to you when you contact your supplier and not your

own money, so you do not have to always make sure you have extra funds when

you place an order with your supplier.

Win-win Situation for Supplier and Dropshipping Business

Suppliers and manufacturers are keen to work with dropshipping companies

because the more people they can get to sell their products, the bigger their

overall profits will be. Suppliers are willing to negotiate a better or a wholesale

price with dropshipping companies even though the dropshipping businesses do

not buy his products in bulk.

The reasons for their keenness is that they get wider exposure for their products

with no marketing costs to themselves, plus it gives them more time to produce

their goods. Suppliers are very aware that building up a good relationship with

the dropshipping business means that the company will keep coming back to

them to purchase more products at a good price.

This is a win-win situation for everyone with a more productive supplier and a

loyal dropshipping company that keeps a steady flow of orders coming in,

resulting in raised profit for supplier and dropshipping business.

Using Online Retail Platforms

Making use of the online retail platforms is an important part of the success of

your dropshipping business.

Exposure to Unlimited Customers

The aim of every online store is to get exposure to as many potential customers

as possible. When you join up with the online retail platforms, you immediately

get exposure to virtually unlimited customers without having to spend huge

amounts of money on marketing.A Vast Range of Products to Choose from in Your


Another huge benefit of using the online retail platforms is the huge range of

products on offer that fall within your niche, you can pick and choose what you

feel suits you best and if you find a specific chosen product is not selling very

well, it is easy to switch to another product on offer on the platform.

Experimenting with which products sell the best is not a costly venture when

you use the retail platforms as you have no losses with inventory that is not

selling. Keeping track of your selling trends enables you to switch and change

fast to keep on top of your game.

Multitude of Vacant Niches

The giant retail platforms such as Amazon, Shopify, and eBay always have a

large number of vacant niches for you to explore, which is a golden opportunity

for you to expand your business into more than one niche. The retail platforms

do the leg work and your company reaps the benefits without you spending

manhours and manpower researching new opportunities.


What is scaling with regards to a dropshipping company and how does it work? This is

one of the questions most frequently asked by entrepreneurs starting their own dropshipping company.

Scaling up your dropshipping business means growing and expanding. Scaling this business model is far easier than for traditional e-commerce business because for the traditional business model it means a lot more work, the more orders received, the more work is involved.

For a dropshipping business, the process works differently. Your dropshipping

suppliers do most of the work generated to process more orders, making the

growing process for you easier and eliminating most of the growing pains other

companies have to deal with.

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