Is Dropshipping A Good Way To Earn Money Online?

A short quick answer for this question is a resounding: yes!

It is a good way to earn money, but it is also a dangerous way sometimes, too, so you need to be careful. Before we get ahead of ourselves, let us talk about what drop shipping is and how it works. According to bloggingexperiment.com, “A dropshipping company buys inventory directly from a manufacturer and stores it in their warehouse. As a client of the dropshipping company, they allow you to sell whatever products they have. If you sell something, you pay the dropshipper for the product plus shipping, and they ship it to your customer for you.”

Onlinebz.com shares, “You open an eCommerce store to market some products, customers order products from you and pay the higher price you charge, and you order the products with a lower price from dropshippers. They can be wholesalers or manufacturers. They charge you with a lower price and directly ship the products to your customers on your behalf.”

While it is a successful business opportunity, it does come with warnings and negative effects that people criticize. However, there are complaints about dropshipping e-commerce being a “too low margin” model. This must be true for some products or niches. The solution to fix this is to spend time finding higher-margin products to market, which is not as easy as it sounds. The margins have to be high enough to factor in a good CPA while making the prices still competitive. Without planning these cautiously at the start, the business can be killed in its infancy. In order to enjoy all the convenience and benefits (saving time, money, workload, inventory, etc.) dropshipping can offer you, doing thorough research to find the right niches and products is a must. This research alone could be one of the most time-consuming activities for any e-commerce owners who look for real success online.”

There are some things to keep in mind before starting a drop shipping business, too. “Will the weight of products matter for successful dropshipping e-commerce? I don’t have e-stores carrying very light and very heavy items for comparison, but this is what I observed online.

Normally eCommerce owners prefer to sell lightweight goods with a maximum weight of 10 lbs. This is very easy to understand: If an item costs $10 with a shipping cost of $45 due to its huge weight, it is not going to be appreciated by online customers.”

So, the weight of the packages matters, too. But, the bloggingexperience.com brings some good news, “Rather than forking over most of your profits to a dropshipping company, you should consider buying inventory directly from the manufacturer instead. Typically, this will allow you to buy products at 50% off the retail price instead of the 25% off you were getting from the dropshipper (dropshippers mark everything up 25% on average).” So, you can make profit. It is just about smart choices and careful consideration of each product being shipped.