Maybe you are often and familiar when you hear the term dropship business. Or maybe, have you ever run or just wanted to run a business that was lured by this “online business without capital”? For those of you who want to run an online business without capital, dropship can be the right solution for you. However, before starting an online business without capital, let’s find out more about dropship!
Dropship is basically a product sales system, where sellers only need to forward orders to suppliers. The supplier will package and send the ordered product that you forwarded from the buyer. Simply put, you don’t need to buy, package and send the products you sell. Everything is done by suppliers. All you need to do is to install product photos/videos, market products through social media promotion, e-commerce, and so on, then forward the order to the seller.
We recognize first, the advantages and disadvantages of this online business without capital!
Advantages of Online Business Without Capital
To start an online business without capital is indeed quite easy. You only need to find the right supplier, post photos and video products that have been provided by the supplier, while marketing them diligently and consistently. In addition, you also need to serve the questions of the buyer in a friendly, responsive, and informative manner.
The dropship theory which is said to be an online business without capital is true. Simply put, you don’t need to spend a penny to make a profit. However, to market the product, you need to be active on social media and e-commerce so you don’t lose competitiveness with other dropship stores. Therefore, you only need to spend money to buy internet or wifi quota to do this.
Because there is no need to buy products sold by suppliers, the risk of selling can be said to be low. You will order the product from the supplier when the order from the buyer is entered and the money has been paid. So, when your product does not sell, you will not experience losses because you do not spend money to buy the product.
Dropship business is indeed profitable if you pursue this online business without capital. Easy, you really only need to be a liaison between buyers and suppliers. So, you can run this business anytime and anywhere, through your laptop or smartphone.
Apart from the advantages, there are some disadvantages of the dropship business that you also need to pay attention to.
Lack of Online Business Without Capital
1. Strict Business Competition
Because the dropship business is an online business without capital that is also easy and low risk, many people who run this business as a side business. With today’s technological advancements, it seems that everyone who owns a smartphone can run this business. In fact, many also know, teenagers who are still in school are active in running this business to get extra money. So, this online business without capital does have very many competitors.
2. Supplier error
Supplier errors are the most risky points when running a dropship business. As explained earlier, dropship is an online business without capital that allows you as a seller to not need to buy, package or send products. All are done by suppliers, but buyers buy products through you. So, when there are mistakes from suppliers such as late delivery, product defects, etc., it is the responsibility that you need to bear because usually, buyers don’t want to know about supplier errors because they feel they are paying for the product, not the supplier.
3. Small profits
This last point is still related to the first point. Because online business competition without capital is indeed tight, the profits you get may be lower. If you set a high price to reap a large profit, prospective buyers will certainly not buy products in your store because they can get the same product at a lower price in other stores. This is certainly a difficult consideration. Ask yourself again, would you rather get a big profit but find it difficult to get a buyer, or a minimal profit but become a subscription for many people?