The year 2021 is not a long time away and that makes it an interesting year to start an ecommerce business. This is because we know ecommerce is booming and it will continue to do so for years to come. However, not all years are created equal, and there is a lot of conflicting information online as to which year is the best to start an ecommerce business.
With the rapid growth of online marketplaces, the ecommerce industry is reaching new heights and it shows no sign of slowing down. According to Statista.com , the global ecommerce market is projected to hit $3.3 trillion by 2021. Dropshipping is one of the newest trends in the ecommerce industry.
Dropshipping has its pros and cons, but it is a great opportunity for beginners. It’s a great way to start an ecommerce business if you want to get some experience before committing to larger projects. Some people get into dropshipping to make a full-time business out of it, others like to make a few extra bucks on the side. You’ll likely lose out on a decent amount of money in the beginning, but that’s the price of doing business.
Here, we will have a look at some of the pros and cons of starting a dropshipping business in 2021.
Dropshipping is one of the most interesting business ideas you can pursue today. There are many free platforms available that can provide you with a store to sell your products, or you can set up your own ecommerce site for a fraction of the cost of a traditional storefront. Due to the fact that dropshipping removes the need for inventories and supply chain from the equation, you are free to focus on your sales and marketing efforts to get your store going.
If you’re just starting out, starting a dropshipping business is low risk and low investment, since you don’t have to purchase inventory nor ship products which makes it a very good option for beginners.
There are so many benefits of dropshipping, like minimum capital investments, less working capital requirement, easy scale & they have attracted investors from big brands like Google, Alibaba and Rakuten. But at the same time, dropshipping has also a few disadvantages that you should consider before taking the final decision like a long delivery cycle, too much dependency on suppliers etc.
The delivery cycle can take quite a bit of time if you’re depending on a supplier to drop ship an item to a customer. And you’re also going to have to spend a lot of time on the phone with your suppliers. It’s important to consider every angle before deciding to use dropshipping to run your business.
You should always keep in mind that dropshipping is a long-term business and requires great amounts of patience and sacrifice.