11 Signs You Should Invest in a Drop Shipping Business
According to Spark Pay, as of 2014, the e-commerce business was a 220 billion dollar market in the US alone, and it’s growing at a rate of nearly 17% a year. At this rate, the e-commerce space could potentially reach $370 billion by 2017. This means that the opportunity to get your piece of the pie is real.
You may think that you have to compete with the big sites like Amazon and Walmart for it. And while this is true, remember that drop shipping is about finding a niche that is in high demand with limited supply.
Don’t think of this as competing against the big sites, think of it as selling a specific product to a subset of interested buyers. In order to take advantage of this burgeoning e-commerce market, you’ll have to know what to look for when investing in drop shipping sites.
1) The Big Boys Are Drop Shipping Too
As reported by E-DSS.org, 22-33% of e-commerce sites use drop shipping, including the top sites like Amazon, Walmart, Wayfair, Sears, and Zappos. Zappos actually started as a drop shipping site. Forrester Research writes that 34% of Amazon’s 2011 sales were from drop shipping. That translates to $14.2 billion in revenue. If the big boys are using drop shipping, so can you. This is the number one sign that drop shipping is worth investing in.
2) E-Commerce Tools Make It Simple
In the early days of e-commerce, anyone wanting to start an online store had to do most of the work themselves. The tools for integrating the process in a seamless way did not exist. Each part of creating a store and setting up drop shipping was done separately. In today’s world, however, the process has evolved to be seamless, which is one strength of our process.
One example of this is PayPal. PayPal is way ahead of all other payment methods for businesses and buyers, and integration is simple. Another example of how times have changed is the ability to create easy-to-use websites based on templates with inexpensive hosting included in the process. It’s truly a drag-and-drop world, which makes drop shipping e-commerce simple.
3) Establishing a Business Is Simple
One barrier many people entering the drop shipping industry encounter is the notion of establishing a business. It’s not as big of a mountain to climb as many imagine. In fact, you don’t necessarily need to set up a business to start. You can use your social security number when filing taxes. Beyond that though, if you decide to set up a business, there are many online resources that make it easy to do so. Even establishing trademarks are an online process as well.
4) No Employees/the World of Freelance
Drop shipping is great because you can keep costs low by having no inventory. Beyond that, you also save money by not having any employees. This means no 1099 tax forms, no benefits to manage, no human resources, and no need to hire or fire anyone. Plus, if you decide you need help writing a blog post, for example, you can take advantage of the online freelance community to get the work done at an affordable cost. Sites like Fiverr and Upwork are a great place to start. With the ability to create a virtual support system at a low cost, now is the time to invest in drop shipping.
5) Endless Options
As we have seen, online shopping and drop shipping are a big business. You can get a piece of the action too. The beauty of drop shipping is that you are not tied to one particular product. You have flexibility to choose among thousands of products and diversify your portfolio with our help. This allows you to put your eggs in more than one basket.
6) Social Media Is the New Word of Mouth
According to a Yahoo Business article, 74% of consumers report using Facebook for purchasing decisions. This is because social media is now the place where people look for recommendations and reviews on products. In fact, 53% of people recommend businesses on Facebook and Twitter. With such a simple way to get word-of-mouth marketing to thousands of people, having a drop shipping site means that your marketing tool is a no-brainer. Plus, we give you a free marketing plan to help you make the most use of social media.
7) Work Anywhere
Cell phones, tablets, Chromebooks, and laptops rule the world. Wi-Fi hotspots are everywhere too. The convergence of these two facts means you can work anywhere. You don’t have to wait until you get home or to work to communicate with a customer or place an order for them. Now you can do this anywhere at any time.
8) Quick to Market
While it can take the same amount of time as a regular e-commerce site to get a drop shipping site up and running, it can be faster to get the product to the market. This is because you don’t have to wait for the product to get sent to a warehouse by a merchant. The product is already there and ready to go which can save you weeks if not months of time.
9) Explore New Lines
With drop shipping, you can easily try a new item with ease. This is because you don’t have to have bulk orders in stock. You can simply add an item clients are asking for or that you think you can add value to. It makes trying new item lines easy, leading to increases in profit.
10) More Time
With the near automatization drop shipping offers, it frees up your time. And in today’s world of endless entertainment options it frees up your time to do things you or your family enjoy. Alternatively, it frees up your time to try your hand at another passive income stream.
11) You Are the Boss
When you drop ship, you are the boss. You decide what hours to do what tasks. You decide what products to keep and what products to get rid of. You decide what price to set and what to charge for shipping. You make all the decisions, and you don’t have to sit in long meetings that accomplish nothing. This alone is an enticing reason to invest in a drop shipping site.
Drop shipping sites have many benefits. From freeing up your time to earning more passive income, drop shipping makes sense. But the perception that starting a business is hard or that marketing will be a burden can stop many people from experiencing the joy and financial benefits of investing in a drop shipping site. With technology allowing for processes to be automated and integrated, the ability to take advantage of freelance support, and the options to sell what you choose, there has never been a better time to invest in a drop shipping site than now.
We work to make the process seamless and fun. We create the site, do the research to find a niche you like and that will be easy to sell in, and give you the tools to market and learn as you grow. We do all of this for a one-time fee. There are no tricks or other hidden fees. We came up with a formula that works, and we want to help you realize your dream of being a small business owner and all the benefits that come with it. Get on your way to earning passive income while you eat, play, and sleep by sending us an email, chatting with us live, or placing your order today.
December 11, 2018