Wednesday, December 25, 2019

Dropshipping pros and cons

What is Dropshipping

Dropshipping is a business model in which you sell product online which you don't have, means you have no stock of the product, whenever you received an order from your online store, you place that order to your supplier's website and give address of your customer, So you supplier directly ship product to your customer on your behalf and you get your profit margin.

Dropshipping Pros

* One the biggest advantage of dropshipping is,You don't have to maintain inventory, you don't need warehouse to store your product.

* Shipping and courier is arranged by your supplier, so you have more time available to market your products.

* You can test as many products as you want, because you don't have to maintain stock, so your funds don't suck.

Dropshipping Pros and Cons -

Dropshipping Cons

* You are dependent on your supplier for product, if supplier delays in shipping you will loose your cutomer.

* You are also dependent on you supplier for product stock, if there is product shortage, your have to find similar product somewhere else which is time consuming.

* You build a brand base on product which you don't own, supplier can destroy your brand at any time.

How to start Dropshipping

Dropshipping Plateform

There are many CMS based systems which offer ecommerce website design, so what ecommerce is? ecommerce means doing your all business activities online, dropshipping is actually a ecommerce website. Some of popular Content Management Systmes (CMS) for doing Dropshipping are:

Open Cart

Here in this article we will discuss first two platforms.


Shopify is specifically designed for dropshipping, that's why it have more option for dropshippers.

* You don't have to buy costly hosting and install SSL for your store during startup.

* Hosting speed is good as compared to most of the local hosting providers.

* Oberlo provide very easy way to import products from Aliexpress, Ebay or Amazon.

* You can use free trial version of 14 days or there is also option available of developer version which is free for first 50 sales.


* Wordpress is most popular CMS, which is being used for almost all type of websites. There are lot of free and paid Wordpress theme & plugins which are designed for e commerce companies.

* Most popular plugin which is used for ecommerce is woocommerce.

Payment Gateway for Shopify

Shopify provides its own payment gateway but it is available in limited number of countries, So you have to find other payment gateways, two of the popular payment gateway which are used in combination are: 
1- Paypal
2- Stripe 

Paypal business account is required for shopify store,
Stripe is very popular for receiving Credit/Debit Card payment online.

Why do newbies fail in Dropshipping

This new business model also have lot of challenges, which includes:

* Finding unique products.

* Building trust of your website so that customer don't think that this website will take away this money.

* Find the targeted traffic for your offers.

* High budget is required for paid advertisement to reach your targeted audience.

* Many countries face payment gateway issue, to receive your sale payment online.

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