10 Benefits Of Launching Dropshipping Business In 2020
Are you looking for an easy and riskless way to boost your income? If you are thinking of starting your own business for this purpose, learn what benefits of dropshipping store you can get in 2020!
Why does it make sense to get a dropshipping store this year?
Well, the words are not enough to describe all the advantages you will get from this decision, but we can name and explain at least 10 of them. Here you are!
Benefits Of Dropshipping
1. Benefits Of Dropshipping: No risk
Fear is the reason why many people avoid starting their own business.
Of course, everybody understands the benefits of being self-employed and independent. Still, it is not easy for all of us to jump at the opportunity when it arises. People are scared to spend money during the preparatory stage. They are not always sure that all the time, money and effort invested in this business will pay off.
This is why dropshipping gets so popular. Nowadays, it is basically the only type of e-commerce business that can bring you solid profits even if you had really low upfront expenses. Plus, you can safely enjoy this business model and have no fear of any risk factors.
As a dropshipper, you don’t manufacture physical products, and don’t have to work manually.
At the same time, you spend no money on buying items for reselling.
Plus, you don’t have any extra costs related to renting a warehouse or an office and hiring staff.
Can you see it?
You have no financial obligations whatsoever.
Even if your business doesn’t work as planned at first, you don’t lose money or reputation.
The whole nature of dropshipping business means that you can easily open a dropshipping store at any moment of your life, and run it conveniently within the comfort of your own home. You can even close or resell your store if you need to, and anyway, you won’t be responsible for making your workers unemployed, or for having a huge rent to pay out, or to deal with hundreds of furious clients, or whatever.
2. Minimal effort
Time and energy are additional factors that typically hold people back.
Dropshipping, in turn, doesn’t demand you to invest all your time and efforts in the store management. It works quite the opposite way: with dozens of automated solutions, you can complete the majority of tasks automatically and save enough time for the things that require your personal attention and individual approach (most importantly, customer relations management).
The elements of your daily management routine that can surely be done automatically, without your direct involvement, include:
- Looking for the perfect items on AliExpress and importing them directly on your website
- Applying the desired markup formula to automatically set the best prices for your items
- Transferring the order details to the relevant AliExpress seller
- Providing your buyers with the orders’ tracking numbers to ensure positive customers’ experience
- Promoting your store with the help of additional plugins and add-ons
- Tracking your webstore performance to learn what you can improve
- And much more!
As you can see, you can easily delegate the majority of everyday tasks to automated systems; this way, you can organize your day wisely and pay your personal attention only to the management issues that include human factor.
3. Making money from a hobby
Dropshipping is the business that helps you live your teenage dream.
If you’ve always wanted to explore space, or to become a rock star, or live in a well-known universe, nothing holds you back from launching a dropshipping store on related topics.
The same is true for your current hobbies that you love and enjoy: if you like sewing, or dedicate your evenings to drawing, or adore pets’ grooming and training, you can definitely create a store aimed on like-minded people with the same interests.
In our personal experience, this is truly the best way to choose a dropshipping niche because:
- You work with something you’re really passionate about, so you are highly motivated to keep going even if something doesn’t work out at the beginning
- The niche is familiar, clear, and understandable for you, so it’s easy for you to pick the most appealing items for your store and follow the most recent and relevant market trends
- You know what your clients might want; you can professionally describe your items’ features to them, and offer a suitable alternative if necessary
- It’s easy for you to create a nice and supportive atmosphere in your store and in social networks you run for it; this way, the store visitors will know you are an expert in your business, so they will trust you much more
Isn’t it awesome to run a business in the sphere you like, and use it to escape from everyday routine while making some lovely profits?
4. Helpful guidance
Dropshipping business is quite young.
Still, the experience and knowledge accumulated in the industry is already impressive. People who already tried dropshipping are willing to share their business journeys and smart tips on thematic forums, and it gives you a brilliant opportunity to interact with proficient businessmen to learn a trick or two.
So, through choosing the most suitable type of educational materials and studying them carefully, you can find answers to the majority of your dropshipping questions. You definitely won’t be the earliest explorer who tries this business, so you’ll be able to avoid some critical dropshipping mistakes, and start your venture in a safe and smooth way.
5. Learning from the best
Actually, dropshipping business now stays at a really curious point of its life cycle.
On the one hand, it’s quite mature already. Successful entrepreneurs share their business stories, so you can take a look at some real-life examples and understand what you can expect from dropshipping and what is its potential.
On the other hand, this business field is not overly saturated yet. As for now, this model is mostly tried by people from well-developed countries with unlimited access to Internet. This is why it’s safe to say that dropshipping still has a huge potential for growth, especially in the emerging countries. And this is why it’s so important to get involved in business NOW. Technologies get more and more advanced every month, and people from every region on the globe will soon get the technical opportunity to start dropshipping. It’s wise to take your spot before the competition get overwhelming, right?
6. Expanding your skills set
Even if you decide to quit this business in some time, you won’t be left empty-handed.
Apart from all the money you’ve earned, you’ll have something even more valuable: knowledge and experience.
When you do dropshipping, you eventually get a bunch of priceless skills that can come in handy for your regular full-time job. These skills include social networks management, digital marketing in general, customer relations management, webstore performance analytics, and many others.
In the nowadays world where technologies and services are developing rapidly, these skills give you a substantial competitive advantage and prove you’re a knowledgeable specialist.
7. Unlimited growth potential
Have you seen this picture of Jeff Bezos that went viral recently?
This is the year 1999; Jeff Bezos, the founder of Amazon.com, has no idea yet that he will build an unprecedented e-commerce empire and become the richest person of all time by 2019.
Having started from scratch, from launching a really basic online store, he became a role model and and inspiration for thousands of people all over the globe who explore the opportunities of e-commerce.
This is not the only story of this kind; Tony Hsieh, the founder of Zappos, also had a simple dropshipping store at the beginning of his business journey. Look what he managed to achieve!
The point is, there are no limits in this business. You can reach the heights you’ve never dreamed of, and one humble dropshipping store can be the right starting point. Why not give it a shot?
8. Thousands of vacant niches
As we have already mentioned, dropshipping business is still staying at the growth stage. Technologies and automated solutions for its smooth running emerge every year, and new exciting products and product categories appear daily.
The point is, if you use AliExpress as the core platform to find and pick suppliers, you have over 100 million items to choose from – this lets you create a unique product offer and explore a highly specific product niche that is not taken by anyone yet. Plus, if you treat your webstore design wisely, you can create a one-of-a-kind shopping destination that is exclusive and atmospheric enough to stand out of the competition.
9. Fortunate growth of manufacturing technologies
Have you heard about economy of scale?
Speaking in simple terms, it means that the more you produce, the lower are your production costs.
Since technologies and machinery are evolving rapidly, it becomes more and more profitable for manufacturers to produce items in huge amounts, and the price for this items gets lower gradually. This means that you can find great items on AliExpress for a fraction of the cost, and as the result, you can increase them several times after adding to your store – your buyer won’t notice the difference!
Compare this potential profit to the revenue you get from affiliate programs or paid ads – obviously, dropshipping easily beats all the other e-commerce business models thanks to its simplicity and incredible money-making potential.
10. Information technologies boost
As we have outlined it in our previous article, developing markets demonstrate a huge potential in terms of becoming the perfect target segment for you.
With the rapid rise of various information technologies, transport infrastructure and logistics services, you as a dropshipper get unrivalled opportunities to meet effective demand on the markets that were previously unavailable in terms of their geographic location and/or Internet penetration, devices affordability, payment gateways availability, etc.
In other words, again, if you act quick enough, you can get a solid share of these emerging markets before they become overly competitive.