Undoubtedly, today many have heard about dropshipping sales, and this model seems very good for starting your business. After all, to get started, you don’t need to purchase goods at the warehouse and bother with delivering them to the client, cash support, and so on. All you need is to have an online store website or even a regular landing page and simply by advertising a product on the Internet, put into your pocket the difference between the wholesale price and the sale price. However, all this is in theory; real practice paints a different picture, which we will talk about in today’s article. Let's look at the model of a dropshipping store from different angles and determine the main advantages.

Although the word “dropshipping” has already come into common use, for those who do not yet really understand what it is, I will try to explain briefly. Dropshipping is a direct delivery from a supplier to the end customer. Those. an online store can sell goods without having them in its warehouse and never having to come into contact with them at all. In other words, your task is to advertise the product and receive a real order, then you deliver this order to the supplier (who works on dropshipping) and he carries out all the remaining processes. After which, the supplier pays you a percentage of the transaction. Roughly speaking, the difference between the wholesale price and the selling price. Agency Stelvel Ltd will help you increase your income in the field of dropshipping.   

Pros of dropshipping

Let's start with the advantages of dropshipping, which, however, are already obvious to many. In fact, there are only two of them:

1. No warehouse or logistics needed.  When working with dropshipping, you have no contact with the product at all. The supplier himself delivers the goods to the client.
2. No need for a cash register.  The supplier takes the money from the client upon delivery, and then you make mutual settlements with him. Naturally, all documents - sales and cash receipts are also issued by the supplier.

At first glance, everything seems great - you don’t need to maintain a warehouse or work with couriers, you don’t need to hire staff (storekeepers, logisticians), you don’t need to bother with accounting systems . 

Is dropshipping profitable?

If you are new to business and want to try to earn your first money by selling goods, then this is a good start, provided that your starting capital is very limited. Many online stores experience difficulties due to the fact that they cannot create good and stable demand for goods; moreover, sometimes they waste money down the drain due to inexperience. Right there, the supplier carefully shifts these risks onto your tender shoulders, sharing a small part of the profit for this.

You most likely won’t be able to earn a lot of money here, because... You are just a cog in the whole scheme, and not a full-fledged self-sustaining online store. Therefore, I would not create any big illusions about this. Fortunately, as you gain experience in e-commerce, you can slowly move away from this scheme and switch to the classic operation of an online store, taking the main business processes under your wing, thereby removing a large number of disadvantages that are characteristic of dropshipping.