The term dropshipping has been branded as ‘easy-to-start’ and ‘maximum profit with minimum investment by giving 2-3 hours a day’. It all sounds so good, but not all glitters are gold.
Here are some things that you need to know about the dropshipping business.
It Takes Intense Attention
The online industry is utterly capricious; you never what is going to happen even the next day. As a dropshipper, you must have a keen observation in the ongoing market and must know what is in the trends. In dropshipping business, if you miss the trends, you lose the profits.
It is not a one-person job
You must have heard stories about dropshippers that you only need a couple of hours a day, and you can make hundreds and thousands of dollar. Well, it is not true at all. You need to invest a lot of time and effort to taste success in dropshipping. Also, you have to balance the communication between your suppliers and customers to makes things work smooth.
To handle all these tasks, you must give all of your time or have a helping hand, a Virtual Assistant, or a business partner.
It takes constant product testing to figure out the winning products that give your business the maximum profits. To do so, you have to be persistent in your product-testing task. On average, it takes 20 product to figure out the winning product for your store, but sometimes it takes much more product. So, you have to have the patience to become successful in this business.
Finance Could Become an Issue
Yes, I agree it does not require much investment to start a dropshipping business, but cash flow issue is the reality of dropshipping business. Payment gateways like PayPal take weeks to clear the payment that could lend you in hot water. You could be left with no money to order the new products from the suppliers and could not fulfill your order, which is the nightmare of any business.
So, you must be sharp in handling finance and have proper planning to manage cash flow issues. You’d better own a credit card or have $200 – $300 in spare to face this foreseeable problem.