The Good & Ugly About Drop Shipping

Thinking about starting up an online business but you don’t know where to start?

Drop shipping is a great option for people with no e-commerce experience. It’s simple, low-cost and easy. This business model allows retailers to skip the inventory issues by connecting them with suppliers all over the world who ship products directly from their warehouse to your consumer’s doorstep, giving you a percentage of the profit.

This new business model has become popular since it is now fairly easy to set up a website with an e-commerce feature on platforms like Squarespace, Shopify, Wix, GoDaddy, etc.

Some success stories that use dropshipping to distribute their products would be gymshark, mvmtwatches and funko.

The good…

  • As a retailer, you don’t have to worry about paying for product storage which can lower your business expenses.

  • The startup investment on this business model is lower since as a retailer you don’t have to deal with product development.

  • On the retailer side, you can have a larger inventory faster, easier and that is aligned with the current trends instead of just focusing on one product.

The ugly…

  • You can’t manage the shipping timing or costs as a retailer.

  • On the retailer side, you can’t control the quality of every product that leaves your store.

  • There might be other retailers offering the same product.

Despite the downsides on this type of business, it's a low-cost investment that offers an opportunity for entrepreneurs in retail to distinguish themselves by offering good customer service and focusing on having a user-friendly website.

Our favourite drop shipping partners:

  • Doba

  • Oberlo

  • Dropship Direct

  • Sunrise Wholesale

  • SaleHoo