Pros And Cons of Dropshipping!


Do you want to start an eCommerce business with low investment and no warehouse and still make a profit? Then Dropshipping is the right online business model for you. It has become a bandwagon for today’s online retailers. However, it might not be a good choice for every entrepreneur. Why? So, if you’re keen to know about dropshipping business whether it’s a good fit for you or not then this is the post for you.

I will start with the definition of dropshipping first and then move on to its pros and cons that will help you know whether it’s an effective model for you or not.

So here we go.

What is Dropshipping?

Dropshipping is an eCommerce business model that allows marketers or companies to operate without manufacturing or maintaining their own inventory or stock. It’s really an efficient strategy for online retailers. It’s a popular form of sourcing products as it allows you to pay only for the items that you sell.

Let’s talk about some pros and cons of dropshipping.

The Pros of Dropshipping!

Following are the pros of dropshipping:

1. Low startup cost

To start any business; it requires a lot of capital to stock a warehouse. So, dropshipping provides you to start your marketing business at a very low cost. You no need to purchase an extensive inventory. You can start a dropshipping business with zero inventories.

2. Less risk

As you can start your business at a low cost so there are fewer chances of risk in this business. In dropshipping, you only pay for what you sell. Retailers have the freedom to alter their inventory at will and keep their store aligned with customer’s demands.

3. No burden of inventory

You feel pressure when you handle your own inventory. You need space to keep your inventory and if your business is successful then you also have to track the inventory and maintain its quality. In dropshipping, you can escape this burden of inventory.

4. Easily accessible

Dropshipping business is all about online marketing. You can run your business from anywhere with internet access.

5. Increased product diversity

There is no limitation of space or overhead cost. As a retailer, you’re free to offer your customers something they love: abundance of choices. It provides you vast and ever-changing inventory that makes sale more profitable.

The Cons of Dropshipping!

Following are the cons of dropshipping:

1. Less profit

You can find a barrier to entry in this business because of the competitive space of online business. Until you build your business high and built up customer loyalty to increase prices to see a big financial gain, you can’t have more profit.

2. Less control

In dropshipping you hand over the shipping process to the third party. And if the dropshipper makes an error and leaves your customer unhappy or dissatisfied, that reflects your business. So you need to work with verified and safe dropshippers.

3. Lots of inventory concern

You will find a lot of inventory issues in dropshipping as you’re not in charge of them. And if your store is not invested with the latest inventory then your customer could order out of stock items, resulting in frustration. It will hurt your reputation.  

4. Poor customer service

You won’t be able to manage personal touch with your customers. It is only through your suppler. If your supplier delivers products late, damage them, delivers the wrong item, etc. the customer will blame you for this. And you will not be able to quickly solve customer issues without seeing the inventory yourself first.

Way Forward!

Dropshipping is one of the simplest ways to start your eCommerce business and earn a passive income. You can sell products online, but you need to make sure to innovate with your marketing. Now that you know the pros and cons of dropshipping, you can start your online business with dropshipping.

It’s really an ideal choice for those who want to sell a large variety of products in the market with less inventory investment. Kindly comment below to let us know how you find this article. For more updates get in touch with us.