What makes dropshipping so appealing – and so downright competitive – is the fact that anyone can do it. You don’t need lots of money to invest in inventory and you don’t even need a website to get started. All you need is an internet connection and a tax ID.
What makes dropshipping so appealing… is the fact that anyone can do it.
Since you don’t buy inventory until after it’s been sold, you don’t have to worry about slow-movers, markdowns, or cash crunches. There are also no overhead costs and no inventory risks, which significantly lowers the barrier to entry.
On the not-so-good side, along with no “bulk buy” discounts, margins are slim because many sellers don’t end up buying from actual wholesale suppliers. Instead, they buy from middlemen posing as wholesale suppliers.
If possible, always buy directly from the manufacturer – the creator of the product. This way, you’ll get the lowest possible prices because there are no middlemen or wholesale markups.
Many manufacturers, however, can’t process individual orders and shipments so they sell by the pallet and not by the item. This is where wholesale suppliers come into play and where it gets tricky for you as a seller.
googletag.cmd.push(function() {
googletag.display("content-ad-1");
});