The Pros and Cons of Drop Shipping: Is It for You?

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July 27, 2012

Thinking of drop shipping as a business? Drop shipping can work for some motivated entrepreneurs, while others may find it difficult when it comes to dealing with customers. If you are wondering what drop shipping is, then keep reading. Drop shipping is a business where an individual sells products from their online store to buying customers. Unlike other retail businesses, the seller does not keep a large warehouse or storage facility full of retail products.

The seller makes an arrangement with a wholesaler (supplier) to sell their products online and when the seller has a sale from a customer, the seller then buys the product from the wholesaler at the agreed price and makes sure it is delivered to their customers address and location. The seller (retailer) is the middleman between the customer and the wholesaler. Are you wondering if the drop shipping business is for you? Consider these pros and cons of drop shipping and decide.

The Pros of Drop Shipping


One of the best reasons to start a drop shipping business is that you won’t have to pay fees for storage space and inventory racks. Yes, it is true. Because you are the middleman you won’t need to keep any retail product on your premises. Your job is to sell the products online and make a profit by making sure the order goes through on both ends – customer and supplier.

You Are In-Control

Since you will be selling retail products from your online store and you are not taking on any storage of previously-purchased risky products you may be stuck with, you are able to change your online retail range whenever you want. You can keep up with current trends and product demands. Another way you are in control is that you can open your store quickly and as early as you like.

One Man (Woman) Show

A major benefit of being a drop shipper is that you get to control your daily flow of work as most entrepreneurs. Forget nosy bosses, a stressful work environment and annoying co-workers. It’s your company now.

The Cons of Drop Shipping

Scams, Scams and More Scams

Unfortunately, just like any online business, there are drop shipping scams out on the market. It is very important that you research valuable and creditable sources such as World Wide Brands and so that you can find wholesalers with good ratings, successful delivery times and all around good reviews.

Customer Service

Since you are the seller and the middleman, you will have customer complaints from time to time. Because you have no control over the shipping process and delivery times, you might have to deal with some issues with customers. This can be difficult when you don’t have access to an immediate solution with the wholesaler. i.e. sending out another product immediately

Shipping Fees

Part of your fees as a drop shipper are the shipping fees. Make sure you research the right wholesalers as some companies raise their shipping prices quite high. This will only cause you to lose more money with each customer purchase and may even cause you to lose customers once they see the high fee online.

One-Time Buy versus Bulk

Drop shippers can only buy one item at a time from a wholesaler, which is after the customer has ordered the product from the drop shipper’s online storefront. You won’t be able to enjoy the benefits of bulk items and saving extra money.

Have you come to a conclusion? Do you have what it takes to handle both the pros and cons of drop shipping? If so, best of luck, do your research, keep up with product trends and bring in a healthy income.

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