What is Dropshipping?

Dropshipping is an order fulfillment method that doesn’t require the store owner to keep inventory. Instead, when a retailer sells a product, it passes the order to a third party who then ship directly to the customer. Consequently, the retailer never sees and handles the product.

That is why in dropshipping the retailer purchase inventory as needed. from the wholesaler or manufacturer and the later fulfills the order. Thus there is a seamless integration between the retailer’s system and a third party.

Takeaways:

It looks like the easiest method in the retail industry because you sell another person’s goods and you get a commission. However, if you factor in all the disadvantages, challenges and day to day management. It is not as easy as it looks.

But if you with the right strategy, the methodology and patient it can help build a very successful business.

Benefits of dropshipping:

  • Less capital

This is unarguably the most decisive advantage of dropshipping. That is because you don’t have put upfront thousand of dollars for stock building. You only purchase a product to resale when a customer has already purchased and paid. In addition, order fulfillment is not done by you.

  • Low overhead

No inventory management and no physical stores. In fact, all you need is a home computer for less than $30 a month to make money from home.

  • Location doesn’t matter

You can run your dropshipping business from anywhere around the world. All you need is an internet connection. As long as, you keep the communication flowing between your supplier and your customers you are all set.

  • Easy to scale

Businesses that leverage dropshipping scale very well and rapidly compared to traditional eCommerce businesses. Since most of the work is handled by a third party. Further, because it is an online business the reach is worldwide.

This model has a lot of strong arguments that make it very appealing for everyone. However, it does have quite a few drawbacks that come with this convenience and flexibility.

Disadvantages of the model

  • Low-profit margin

This is the biggest disadvantages of this eCommerce model. Because it is so easy to get started with relatively no barriers for entry and an overhead minimal cost. Irrespective of the site quality the competitive environment drives prices down.

  • Highly competitive

This is because of the low cost of entry. In addition chances are you don’t have an exclusive contract with your supplier. That means many merchants selling the same products as you. Price point becomes, in this case, an element of differentiation and competition.

  • Supply chain issues

In this model, you don’t control the supply chain process, from sourcing the product to shipping it to your customer after purchase. You are essentially trapped and hoping the supplier or the fulfillment center addresses any issues with the product while providing an excellent customer service that’s out your control.

Above there are also problems related to the quality of the goods. Since as a dropshipper you don’t have control over the shipment. So shipment error can really damage the brand.

  • Legal liability 

This happens when suppliers illegally use a trademark logo or another company’s intellectual property. Thus affecting your brand.

Conclusion

Usually dropshipping is perfect for an established brand with an already existing customer base. But if you are starting from scratch you need to be fully aware of the pitfalls and the time needed to build your business. Virtually it looks appealing but in the long run, it requires a lot of work. If you pass that stage of implementation the business can prove to be extremely lucrative.

 

 

How To Make Money Working From Home

The ability to make money working from home is most people’s dream. However, the outcome depends on how much time and effort you put in. Efforts can go from some few minutes to a full-time position. Either way, you could leverage your skills to earn money in a way that meets your needs and availability.

Takeaways: How To Make Money Working From Home

Some tasks will help you make some few dollars while with others you could expect to take home a very good paycheck. In fact, I know some people that make over 6 figures working from home every month. here are some ideas that could help you achieve the same level of freedom whether you are a homestay mom, dad, student, a senior or just looking for a career change.

  • Slow-income generation task:

it is considered slow income generation because it would take some time before you could actually make some substantial income.

Take online surveys: It is a very simple and easy way to make money online., But it takes a while to make a hundred dollars. The ratio of time vs income is extremely low. However, if you put 24h/7 you could end up with more than $200 according to certain personal finance blogs.

Monetize your website: If you have a blog or website, let it make some money for you while you are at rest. Programs like Google AdSense allow advertisers to bid for your ad space. It’s free and doesn’t have to add to your workload. Ads run on your blog and you make money when visitors click on them. With good web traffic, you expect to take home a very interesting paycheck. In addition, you could either request for donations or sell a physical product or a digital product on your site.

Youtube/Vimeo channel: If you have a passion you could put it to work by creating video content around your passion. Then you could monetize it by either selling your most creative video content to your audience worldwide or running ads on your piece. Nevertheless in the case of ads you need to reach a threshold on youtube to get good money out.

  • Fast-income generation task

It is considered a really fast way to make regular money.

Freelance: Chances are you have specific skills or technical ability or even good knowledge about a specific topic you will like to share. You could join websites like Fiverr or upwork that connect freelancers to businesses and sell your skills.

Remote jobs: You could actually get a full-time job working from home. Indeed such job type could range from, virtual assistant, scheduler to more technical jobs such as data entry. Also, websites such as flexi-jobs or indeed could help get the perfect match.

Home restaurant: The trend is growing across the country. By taking advantage of the space in your house, you can make money cooking at home.

Choosing the best method that works for you is essential. Just make sure you keep records of all your dealings in case something goes wrong or you need to file for taxes. Regardless, working from home provides you with so much freedom and flexibility.