THE MAIN DISADVANTAGE OF DROPSHIPPING
Every business on the Internet sells something. Making money means selling something. If you have no selling skills, you will never make money. An office worker also sells something. In this case, a person sells his knowledge, experience, and skills. An office clerk sells his time. A successful blogger also sells something. Otherwise, he could not monetize his blog. Money-spinning blogs lead to sales. The only way to make money online is to sell something.
Today, if you want to start selling online, you have two options:
1) INVEST YOUR MONEY
In this situation, you invest your own money. Firstly, it is necessary to buy something in order to be able to sell. Therefore, you invest your money by buying the products you are going to sell. You might make online or offline purchases for this purpose. The most important is that you invest your own money. All the bought products are kept in your own warehouse. This warehouse may be anything you wish. You may store the items in your room, house, shelf, or in a huge professional warehouse. This option is available only if you have some funds. If you want to start selling from zero, the second tool will be more suitable to you.
Dropshipping simplifies business for those potential sellers, who have no money to invest. In some cases, they have the necessary budget, however, for some reasons they do not wish to spend it. In simple words, dropshipping gives you a full access to the world’s largest warehouses. For a particular paid subscription, you get a full access to millions of products sold by international wholesalers. This gives you an opportunity to buy only when someone buys from you. Thus, you have no risks to lose your money by investing it.
Dropshipping has both advantages and disadvantages. This business style might look very attractive because it is very convenient. Moreover, dropshipping gives you a great chance to start selling even if you have no funds. Loads of people want to start selling on EBAY, Amazon, and other famous online stores. At the same time, some of these people have no money to invest in the online trade. Dropshipping solves their problem. For an affordable monthly or yearly subscription, dropshipping let people start a serious online trade business. I was truly amazed by its convenience until I got acquainted with its disadvantages. Negative sides of dropshipping business style are very significant. I thought dropshipping to be an ideal way to sell online until I recognized one thing.
DROPSHIPPING DOES NOT LET YOU SELL UNIQUE PRODUCTS
When you list the items taken from some of your dropshippers and wholesalers, you will see that thousands of sellers already sell the same products. This is absolutely true. You are not the only lucky person who discovered dropshiping. Even though there are dozens of famous dropshipping companies, thousands of sellers already use all of them. For example, DOBA and WorldwideBrands are the most famous online dropshipping companies. When you subscribe to some of them, you will get an access to millions of products. Remember that thousands of sellers have the same access to the inventory. Thus, all of them are able to list the same items you list on your store. “So what is the problem?”- You may ask. The problem is that, in this situation, you sink into a very high price competition. Loads of sellers sell the same items and all of them want to outrun other sellers. When a product is sold in millions of stores, a buyer does not care much about the store to buy his desired product. Hence, every seller will strive to sell his products at the lowest prices. While dealing with dropshipping, your price policy won’t be independent. If you set high prices, your buyers won’t worry much. Another store will sell the same product at the lowest prices. Consequently, you won’t be able to make a serious profit. Dropshipping creates a very high competition among online sellers. Are you sure that you will win this race? If yes, you may try your luck. However, I honestly suggest you not to deal with dropshipping if you want to build a sustainable online business.