Dropshipping Business during Coronavirus in 2021
Dropshipping in pandemic
Coronavirus has impacted everyone's business as well as our economy. But at the same time, due to this pandemic, more and more people are becoming aware of online stores and prefer to buy things online instead of going to a physical shop or store.
Moreover, a research which is one of the dozens shows a massive increase in the numbers of online shoppers due to Covid-19. So you, as a drop shipper, can take advantage of this fact.
You can generate more and more sales by following the effective strategy of dropshipping, which will increase your revenue as well as profit.
So if you are thinking of starting a dropshipping business in 2021, then read this article till the end. Here we will provide you with complete information about the benefits of dropshipping and the risks involved in dropshipping business.
What is Dropshipping?
Dropshipping is a retail fulfillment method. In simple words, it is a business in which the seller doesn't need to store products in inventory.
The seller firstly takes an order from the customer then the seller purchases the product from the third party and ships it directly to the customers.
Seller usually charges a bigger amount than the factory price. So the seller can make a profit on every product sold by him.
Sellers mainly source products from China and then sell them in countries like United States, United Kingdom, Canada, etc.
There are various benefits of dropshipping, and at the same time, there are multiple risks involved in it. Below we have discussed the benefits and risks of doing dropshipping, especially during the Coronavirus.
Benefits of Starting a Dropshipping Business during Covid-19
Dropshipping is an excellent business, especially for young entrepreneurs. It allows you to test different business ideas with not many of investments and downsides.
There are various reasons why you should start a dropshipping business in 2021.
1. It is Easy to Start
Currently, in the time of this pandemic, many people have lost their job, and many businesses get shut down. Due to this, more and more people are searching for new jobs or thinking of starting a new business to fulfill their needs.
However, to start any business, one needs the proper knowledge, a good amount of investment, and a lot of time. But this is not the case with Dropshipping business.
Anyone with a basic knowledge of the internet and have eager to learn something new can quickly start a dropshipping business just by spending some time learning the basics of dropshipping.
Furthermore, you don't require much investment to start this business because as you don't need to store the products in a warehouse.
All you had to do is take orders from customers and then pass them to the other sellers. You can take orders by creating your own dropshipping store.
There are various companies that offer the service to create a dropshipping store, and one of the most popular among them is Shopify.
2. Unlimited Growth Potential
Due to Covid-19 most of the business reports fewer sales and loss in their revenues and the main reason behind this is that no customer is coming to their store or shop.
People are concerned about their safety, so they try to stay at home while doing all their shopping online. According to current market needs, no business can sustain itself if it is not selling online.
You, as a drop shipper, can take advantage of this thing. You can get in touch with local businesses and sell their product online to as many customers as you want with the help of your online store.
With a dropshipping store, you can easily reach millions of customers and market them any product you want. Moreover, it is easy to grow a dropshipping business because you don't need to change your business model much, even while scaling your business.
All you need to do is put extra effort into marketing so you can generate more sales, and everything else will remain the same.
3. Dropshipping is Flexible
Coronavirus made us realize the value of our time.
Before this pandemic, we all had to go to the offices or to our shops for work, but with covid-19, everything changed. People are doing work from home and staying at home.
So the most significant benefit of dropshipping is that it is very flexible. The dropshipping business gives you the flexibility to work from anywhere and anytime.
All you need is a laptop and a stable internet connection. Basically, you are your own boss. You have to power to make decisions that will be much beneficial for you.
Risk Involved in Starting Dropshipping Business during Covid and How to Overcome Them
The benefits of dropshipping business seem very lucrative due to which there are high chances till now you have made your mind to start a dropshipping business.
However, every business has its own pros and cons, and the same applies to dropshipping. We will review the risks involved in this business, especially during the time of Coronavirus. Hope you could overcome these risks by following the proper tactics.
1. Threat of Scammers
Currently, due to covid-19, many people are thinking of starting their online business, and for that, they get on the internet to search for suppliers.
Scammers take advantage of this. There are various suppliers who try to cheat on drop shippers. Your business success is very much dependent upon your supplier. Even if you do your best and the supplier fails to provide the required service, you will face the consequences.
To avoid this, try trusted methods to find the suppliers and verify their information.
2. No Control over Supply Chain
Due to Covid-19, many businesses have got closed, and even after the lockdown, not all businesses are able to return to their full capacity.
There is always a chance that your end-customer complains about product quality, fulfillment speed, or return policy, which you cannot address yourself.
In many cases, dropshippers entirely depend on the supplier while having to handle the buyers' complaints. So you should be able to establish proper communication channels with your supplier at the start and throughout the cooperation.
To eliminate this problem, it is essential to choose a supplier whose business is stable and has an established complaints handling policy and internal quality assurance system.
3. Legal Issues
It is essential to check that the supplier you are dealing with is a genuine and reliable business by verifying their business license, their financial status and business history, documentation. It is also important to verify the trademarks and intellectual property rights.