With the many different ways that you can make real money online free, you would think that many people who make a living online are filthy rich which is far from the case. A few weeks ago I came across a “craze” on social media known as dropshipping and at first I had no clue what it was about. I heard about it from a man that is known as one of the top sellers of MCA (Motor Club of America) so I had to see for myself what he was cooking up.
So, can you you make real money online by dropshipping and if so how do you do it? Well, let’s find out.
What Is Dropshipping?
All that dropshipping is that it is another way to run an online store with actual inventory, but the difference is that you do not have to store the inventory in your home in order to ship it to customers. Sounds confusing, I know. The way that this basically set up your storefront online and collect the money that you earn just like any regular store. However, instead of packing and shipping an item yourself, you simply place an order for the same item from an online distributer such as eBay or Amazon.
How Much Money Can You Earn With Dropshipping?
Well, it all depends. The amount of money you can make in profit depends on the selling price of your item and how much the price is for the item from the retailer that you use.
The Advantages of Dropshipping
There are many advantages to dropshipping that I have surprisingly found. Some of these advantages include:
1. No Upfront Costs
When you work online as a dropshipper, you will have not only an online store, but you will have online inventory as well. This is a huge advantage as it can reduce any upfront costs and commitments that come with running an actual store. You will not have to worry about paying for inventory up front, buying the products that you need or have to worrying about restocking the inventory you have when it runs out.
2. Makes Shipping Bulky Items Easy
One of the most common types of inventory that is dropshipped is bulky items. Why is this? It is because most of the times these products are way to expensive and heavy to receive, store and then ship out to your customers when an order has been placed for them. The easiest thing that you can do is simply drop ship them straight from the manufacturer.
3. The Location Is Ideal
Most of the time when you drop ship a product to a customer, you have the advantage of having suppliers that are close to that customer’s location. This is an added advantage, as it will improve your approval rating from customers and cuts shipping time nearly in half
The Disadvantages of Dropshipping
Just as with anything, dropshipping comes with a variety of disadvantages such as:
1. Can Put A Limit On Product Selection
When you run a store that drop ships to the customers location, you are really limiting the variety of different options that are available to your customer.
2. Dropshipping Can Cost You A Lot of Money In The Long Run
When it comes to dropshipping you have to keep in mind that you have to pay the actual cost of not only having the item stocked from the manufacturer, but you also have to pay shipping costs, packing costs and mark-up prices just to make a profit in the long run.
The problem with this is that it can cost you a ton of money, while keeping stock of your own merchandise can give you complete control over these costs. The only time you will begin to notice your costs going down is when you continue to get an increase of sales, which can take a while to get.
3. You Have To Worry About Customer Service Yourself
This is one of the major pitfalls of any dropshipping business and it is one of the reasons why many people do not bother getting into it in the first place. Dropshipping requires you to work twice as hard at having excellent customer service and to remedy every problem a customer encounters with an order, which can sometimes prove difficult to sort out.
Can You Make Money Dropshipping?
This is a tough question to answer as the very answer has many different variables that you have to consider. There are many people out there who have a successful dropshipping business while there are a few people that I know who have yet to make a dime with it.
The real key to success is conducting a lot of research. You will need to see what items you have been able to make a lot of conversions on as well as what items are converting extremely well on both eBay and Amazon. Look for items that aren’t even listed as those are items that are more likely to sell more for you in the long run.
Another factor that plays a role in how much money you can make with dropshipping is how much effort you put into it. For example if you just set up a site with your available products, but make no effort to advertise or market your business in anyway, you will not make money. If you are looking to get into the dropshipping business, look forward to working your ass off for hours on end without any monetary reward.
My Final Opinion
While I have seen for myself that dropshipping is indeed one way that you can make real money online free, it is no way my personal favorite. I think there is just way too much work involved in this business and not many examples of people who have succeeded. I also think there are too many disadvantages to dropshipping to the point I believe it sets many more people up to fail than to be successful.
If I were you I would choose an online profession that will actually make you the money that you want to earn and that has a proven history of making a ton of people money online.
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Do You Know Someone Who Runs A Dropshipping Business? Have You Been Successful As A Dropshipper? Or Do You Want To Add Something To My Review? Regardless I Would Love To Hear From You! Simply Drop Me A Detailed Comment Below.