Advantages & Disadvantages of Drop Shipping

By | April 9, 2013

no investment dropshippingDrop shipping is an amazing way to have a source of income through the Internet and working from home. This is a legit online job if you know how to use it. Drop shipping is where you sell a product to anyone and the company who makes that specific product will ship it directly to your customer. You can use drop shipping on almost any type of selling platform on the computer.

The best one in my opinion would be eBay. You want to find a product that your the only person selling, and something that will catch the buyer’s eye. New electronics that have not yet hit the main stream in popularity are often a good choice to try and sell since so many people are into electronics these days.

Drop shipping is a great choice for anyone just starting their journey into making money online. Why is it such a great choice? Below I will outline 5 advantages to drop shipping.

1. Low costs up front – Since you’re only selling the product and the company provides shipping to your customer, you’re not actually putting any money up front. The only money you’re dealing with is the profit after selling any items. This is great for low budget start ups and an easy way to earn some extra money.

2. Less work – Since the company will prepare the items and shipping, this is less work that you have to put in. You only have to focus on selling the actual product and the company takes care of the rest. This can save you some time and money  involved with shipping costs.

3. No Storage & Inventory – All of your inventory should be in ownership of the drop shipping company you decide to use. This will make it more convenient for you because you do not have to keep inventory records or find a place of storage. Think about it, drop shipping company has thousands of items to sell. Most likely you would not have any place to store this number of items. With drop shipping, you can still offer a variety of products to sell without having to worry about storage and inventory.




Drop shipping sounds great right? Let’s take a look at the other side of this business with some disadvantages.

Disadvantages  Of Drop Shipping

1. Lack Of Control – You do not have control of the actual item or faulty products. This responsibility falls in the hands of the manufacturer or maker of the products.

2. Customer Support & Feedback – This is a difficult part of the business because all customer support will most likely go through you as the middle man. If you’re selling the product, your customers think that it is actually in your possession and you can help them. This can be frustrating but remember to keep the customer happy and try your best to give them reasonable answers.

3. Competition – There are hundreds if not thousands of drop shipping companies. Your goal is to find the ones that are most reputable and consistent. However, there will be many other people using the same site for the same products. This is where research can separate the good from the great. Doing research you can find a greater number of drop shipping companies which can increase your chances of finding products that have less competition.

This can give you some insight if you decide to go into the business and start making money. It is a viable option for those looking to expand their sources of income. >>SaleHoo Review

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