A dropshipping business can be a way to make a full-time income from home. You can work flexible hours, start with very little capital investment, and don’t have to buy or store inventory.
It sounds like an ideal eCommerce business opportunity – but there are downsides.
If you’re wondering how to set up a dropshipping business, make sure you read this advice before you do anything.
Advantages of a Dropshipping Business
Setting up your own business online is incredibly rewarding. You can work in your own time, run a side hustle or a full-time job, and take your business in any direction you want.
If you’re still unsure about setting up your own work from home business, consider these advantages:
You can choose whether you want a side job for a little extra income or a full-time job so you can say “sayonara” to your boss.
If you have family commitments it’s easy to work around these by choosing to spend time on your eCommerce business early in the morning, spread through the day, or in the evenings.
Limitless Income Potential
Your business will be as successful as you want it to be. If you choose to invest in enhanced marketing strategies such as SEO and paid advertising, you’re likely to see greater returns.
The more time and money you invest in your business, the more revenue you can generate.
Very Little Start-Up Capital Required
You only need a small amount of capital to create your online shop and start some simple online marketing strategies. It’s easy to get started with a dropshipping business for less than a couple of hundred dollars, and you’ll very quickly see returns on your investment.
No Need to Buy, Store, Pack, or Ship Inventory
Dropshipping means you connect directly with the wholesaler who packs and ships the order from their site. This means you don’t need to buy inventory or pay for somewhere to store it. You also never have to worry about packing and shipping items as this is all done for you.
Avoid These Common eCommerce Pitfalls
As the saying goes, if something sounds too good to be true then it usually is. With the amazing benefits of running your own eCommerce business come some pitfalls you need to consider before you get started.
Failing to Register for Taxes and Licenses
A simple tax registration isn’t enough. You’re operating a store – it doesn’t matter that it’s only online – and so you need to make sure you have all of the correct licenses to operate according to your state regulations.
Making False Marketing Claims
If you know you’re selling a generic product, don’t say it’s a brand name. You’ll get into a lot of trouble.
Not Researching Partners in Detail
Your suppliers are responsible for the quality of your products and the packaging. If your items constantly arrive late, damaged, or not as described, the buck stops with you. Don’t always go for the cheapest supply option as it could cost you more in the long run.
Slow Customer Communication
Your job, apart from running your online store, is customer service. Even though other suppliers handle your inventory and shipping, you need to let customers know how their order is progressing. Slow customer communication will bring your dropshipping business to its knees as people go elsewhere for better service.
Marketing Automation is the Key to Online eCommerce Success
One final, massive, mistake that many new eCommerce operators make is not investing in their marketing efforts. Without continuous marketing with a clear strategy, you’re simply not going to make the sales you need.
It’s easy to get swamped in the marketing options for a dropshipping business, but there are tools out there to help. Make sure you’re being as efficient as possible by checking out these top automated marketing tools to help maximize your revenue and minimize the effort required.