4 Reasons Why Dropshipping Is the Best Online Business Model
Dropshipping tends to get a lot of flak online and understandably so. 90% of dropshippers will fail within 3 months and likely become jaded by the experience. As someone who’s run both successful and unsuccessful dropshipping stores, I’m in a better position to give you the complete picture. Whilst dropshipping isn’t perfect, this article will provide 4 reasons why it’s the best online business model for 2019. The minimal start-up costs, complete location and time freedom and marketing skills that you develop make it unmatched in the online business world.
Low Start-up Costs
Compared to most business models, dropshipping has insanely low start-up costs. We typically recommend starting with $1000-2000, which should be more than enough to set everything up and get your Facebook ads campaign going. The costs are this low because you don’t have to pay for anything until your ideas are validated. You don’t purchase the item until after the customer makes the order, nor do you have to hold any inventory. If you don’t have 5-figures to start a business, dropshipping is an excellent choice for you.
One of the most appealing aspects to me about the dropshipping business model is that it is completely location independent. As you don’t have to either handle or fulfil the inventory, you can work on this business from anywhere with an internet connection. Whether you want to work on a beach in Thailand, a hammock in Hawaii or even in a bustling city like New York, dropshipping gives you complete freedom. Instead of having to spend the day in a soul-sucking office, you can get your work done at your own pace in any environment that you’d like.
Not Trading Time for Money
One of the main gripes I had with working a 9-5 job was that you’re essentially trading time for money. By taking up so much of your time, you’re putting an artificial constraint on your earning potential for a year. As you aren’t paid a salary, there is no limit to the amount you can earn with dropshipping. Whether you want to earn an extra $1000 per month or you want that elusive 6-figure income, dropshipping gives you complete control. In fact, many dropshippers perform so well that they’re able to hire their own employees to help scale operations.
Allows you to Develop Great Marketing Skills
When it comes down to it, dropshipping is all about marketing. By running a successful store, you’ll learn a ton of very useful marketing skills that can be transferred to almost all other online business models. In setting up Facebook and Instagram ad campaigns, you’ll learn the skill of paid advertising, arguably the most important skill in the modern marketing landscape. Writing your own product descriptions will also significantly improve your copywriting skills, whilst dealing with influencers will develop your ability to negotiate. Even if your dropshipping store doesn’t work out, these are valuable skills that you can use in your next business endeavour.