One of the biggest advantages of the drop shipping business model is its staggering return on investment (ROI) potential. Unlike conventional business models (i.e., manufacturing, wholesaling), which required people to sink many thousands of dollars into creating and maintaining inventory, drop shipping needs only a minimal investment in the right web-based infrastructure.
That being said, like any business model, drop shipping can certainly get expensive if it isn’t approached and managed properly. High fees on ecommerce sites, for example, can take a dangerously large chunk out of your profits.
To really do drop shipping right, you’ll need to create a concrete plan for how to set up (and run) your new business with very little cash. The guide below should help you get started: