WHY STUDENTS SHOULD START DROP-SHIPPING BUSINESS
Before we delve into the benefits of starting full gist on what drop-shipping is all about.
What is drop-shipping?
Drop-shipping is an e-commerce module which allows sellers to do business without inventory and capital.
The main features of drop-shipping involve the process where the retailer’s major role is to source for customers while the wholesaler takes care of shipping the products to these customers.
Drop-shipping has become so popular because it helps entrepreneurs bypass the stress of handling and shipping products leaving all the hard work to the wholesalers who in turn charge commissions. Also, retailers do not need to buy these products before reselling them but only make payment once the equally make a sale.
The process of drop-shipping goes thus:
First: Customers pay a retailer for products.
Second: The retailers push these orders to the wholesaler.
Last: The Wholesaler moves the goods to the Customers.
The being said, let’s dive into the positive and negative attributes of drop-shipping:
The Good Sides of Drop-shipping:
LOW START COST:
Setting up a drop-shipping business is very inexpensive venture. You do not compulsorily need to have a lot of money to get into this line of business.
What you need to get started includes: a Smartphone or a Laptop, a website or a shopify account, some branding and of course; a trusted supplier (or suppliers as the case may be).
NO WORRIES CONCERNING LOGISTICS:
This feature of drop-shipping is what makes it the perfect and ideal business for students to go into as they don’t have to fret about warehousing and shipping products to customers which would require investing a lot of capital.
Logistics is taken care of by your suppliers while the entrepreneur concentrates on adverting the products and getting the word out about his/her business to a wider audience.
DROP-SHIPPING BUSINESS CAN BE OPERATED ANYWHERE:
With your laptop or Smartphone and a good internet you can successful run your business on the go whether you’re on the bus or making your way to class, you can effectively take care of business since you are not in possession of the products or anxious about getting them across to your customers as your supplier takes care of these process for you.
YOU ONLY PAY YOUR SUPPLIER AFTER YOUR CUSTOMER PAYS YOU:
Being the perfect business for students who have little or no capital to go into something big, the entrepreneur only makes payment for a product only after his/her customer equally pays.
It makes so easy for a seller to make money without having capital or any of the products in hand.
The Negative Sides of Drop-shipping:
ORDER FULFILLMENT RATE IS NOT CONTROLLED BY YOU:
Delivery timeline of goods may take longer than initially expected and sadly, you can’t do a lot about this since logistics services are provided by the suppliers plus, any problems with customer’s orders are referred to you not the suppliers.
Being a very easy to-start business, there’s however a lot of people who go into drop-shipping everyday and as such, there’s some degree of completion resulting in reduced profit.
Drop-shipping like every other business out there has its ups and downs but that doesn’t make it impossible or less beneficial for students to head into.
The main reason that this article comes into play recommending it as a good business idea for students who’d love to make money online from selling products but do not have the required capital to actually buy these products before reselling them is because it’s among the few out there that have low startup costs.
Any student out there who’s looking for a way to earn some cool cash should try out drop-shipping. It may seem challenging at the start when you’ll have to handle a whole at once when it has to do with customer relations as your customers only contact you if there’s anything that needs to be addressed. From delayed deliveries returns or order cancellations to damages inflicted on goods during transit, you’ll have to do the work of calming your customers and contacting the suppliers to rectify any of these issues.
However, it is one of many legit ways for students to make extra cash without too much stress or making huge financial investments.
See Also: How To Make Money As A Student