Like any other business model that claims to provide value, drop shipping has stirred up a debate between those who swear that it’s the business to be in, and those who passionately proclaim that it isn’t.
This controversy is a good sign because it indicates that people are keeping a close watch on drop shipping, keeping track of both its successes and disappointments, and providing us with a wealth of insights regarding this business model.
So is it possible to make money on drop shipping? Well, that depends.
If you have a set of power tools, would it be possible for you to build a house? It would probably depend on your knowledge and skill in using these tools. The same goes with drop shipping. On paper, drop shipping does indeed look like the perfect business to operate. No warehousing, no cash out, product deliveries taken care of, an extensive catalogue with no minimum quantity restriction are some of the advantages it offers.
On the other hand, you have no control over your inventory items and how quickly that item is re-stocked and shipped. And since the customers deal directly with you, you tend to take the blame for any mishaps.
Competition is also an issue, because other sellers will be selling items from the same drop shipper.
Given these pros and cons, making money on drop shipping boils down to how effectively you can exploit the advantages, and how you can offset the problem areas. Yes, it is possible to make money on drop shipping, but you have to work the business, and deal with the problems that crop up.
Tips for newbies wanting to make money with drop shipping
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