Every business model has its pros and cons. It’s best that you thoroughly research all aspects of drop shipping and decide if it is for you or not. This list of pros and cons of drop shipping will help you come to a decision that best suits your situation.
PROS AND CONS OF DROP SHIPPING
The first ease of a drop shipping business is that it’s super simple to set up. You literally need nothing but a website and your business is ready to roll. Every year, thousands of business startups close down due to excessive loss. In a drop shipping business, there is no such risk at all!
Since it’s easy, you’ll face a lot of competition. Many other people with no investments would be involved in a business similar to yours. More opportunities for the world means higher competition scale for you. You’ll have to struggle to find a unique aspect for your business because most of what can be done in a drop shipping business is already being done.
NO INVENTORY REQUIRED
The biggest cost in a business selling tangible goods is the cost of storage. It is risky since you have no idea when your items will sell. Similarly, the regular rent you have to pay is a constant cost that you’ll have to pay even if your sales are paused. This isn’t an issue you have to worry about in drop shipping. It is one of the biggest attraction of a drop shipping business. The supplier is the one who controls the inventory. You won’t have to pay a penny unless you make a sale.
Not having to pay the storage cost is all fun but it also restricts your involvement in quality control. You don’t know exactly what the supplier is sending to your clients. You won’t get to personalize orders. Neither will you know exact details of the shipment timing nor will you be able to answer your client in this aspect.
Another major issue in this regard is that you as the retailer will never be aware of the exact product count. There is a possibility that you’ll get an order for more products than the supplier has manufactured.
Building a brand is a time-consuming but important aspect of a business. Since you don’t have to deal with the logistics in a drop shipping business, you can put in as much time as you want in this aspect.
You’re not the only one in control. You are ultimately selling the products of another manufacturer. The disadvantage here is that whatever image you build, it won’t be solely yours. Similarly, you’ll ruin your image incase the supplier messes up and sends a damaged product.
In most of these cases, the issue arises due to lack of professionalism on the behalf of the supplier. If you want a trustworthy company to work with, you can consider wholesale2b. They offer a great service, a wide array of products, and a number of trustworthy supplier options.