Revealing the Pros and Cons of the Drop Shipping Business

You’ve probably heard or read about drop shipping and how it can be a great online business due to the fact that you don’t need much business capital to set up one.

With drop shipping, you don’t need to keep a stock of the products that you are selling. When you make a sale, you purchase the merchandise from one supplier who in turn directly ships the item to the customer.

As the seller, you don’t need to spend money upfront for the merchandise. You only pay the supplier from the payment that you received from your customer. This somewhat win-win situation is what makes drop shipping business appealing to people.

If you are interested in starting a drop shipping business, here are the pros and cons to help you make that important decision.


Little to No Capital Involved

Since the merchandise is directly shipped to the supplier, there is no need for you to find a space to stock your inventory as well as shelling out money upfront for the merchandise. The supplier gets paid once you receive payment from your customer.

Work from Any Place

You are in charge of the digital or technological aspects while your drop shipping supplier is in charge of the physical aspects. This allows you the freedom to work or run your business from any place that has an internet connection.


You simply need to transfer the information about the placed order to your supplier, which means that the amount of work you need to do remains the same. This means that the business is very scalable and can only be limited by the amount of stock available with the supplier.

Having more than one supplier for your offered merchandise would be the wisest route to take so you would rarely encounter an “out-of-stock” situation.

Limitless Product Selection

Remember that you don’t need to purchase and keep an inventory, which gives you more freedom in the number of products you sell. You only need to concentrate on your sales data to see if you can offer more products to sell particularly if you wish to expand your business.


Low Profit Margin

Over the years, drop shipping has become quite popular which makes it a highly competitive market. To ensure that you get a fair share of the drop shipping consumer market, you need to provide products that are priced based on the current prices offered by other drop shipping business owners.

High Risk

All businesses involve some risk, but this is probably higher when it comes to drop shipping since you don’t have any control on the physical aspects.

Imagine yourself guaranteeing your customer that they are purchasing a high-quality merchandise that would be delivered to them with no issues only to end up with shipping delays, low quality merchandise, and in some cases an “out-of-stock” situation.

This can be a very frustrating experience for you and your customer. The last thing you would want on your plate would be to deal with a very upset customer.

No Fast Shipping

Expert studies have always shown that the shipping time is one of the most important influential factors for an online buyer. If your product is shipping from an international location, chances are you won’t be able to offer rush shipping options unless you keep an inventory of your most sellable merchandise.

Please don’t think that I am trying to discourage you from starting a drop shipping business. My aim here is that by presenting the pros and cons of drop shipping, you would be in a better position to decide if you should proceed with your plan.

2 Online Businesses You Can Start with Little or No Cost Involved

The worldwide web is a terrific equalizer for business entrepreneurs where it has a leveled playing field regardless of one’s experience. It also allows one to be free of any fixed time schedules unless you imposed the time schedule on your own particularly if you want to grow your business at a faster pace.

You’ll be happy to know that you can start your own online business without the need for a huge business capital, which usually is the deal breaker for persons who wish to begin a business venture.


Yes, blog is a great online business that involves no money to begin with. You can use several of the free online services to create your free blog.

If you are serious in blogging as an online business, I highly recommend that you consider checking out the various low-priced website hosting companies, so you can create your own site and have a secure website hosting.

The common misconception is that blogs are solely focused on writing. This is farthest from the truth though. Blogs can contain videos, photos, news repost, and anything that you might think of as blog worthy that is related to your niche.

You can make money via blog ad networks, affiliate marketing, or pay-per-click ads that would appear on your blog. You earn money every time a visitor clicks on the ad.

The secret to building a blog following and converting your blog into a profitable online business is to provide your readership with an authentic and engaging yet useful content. Regularly posting on your blog is also a plus. Set a schedule for your posts so your readers will know when to expect an update.

Online Videos

If you love public speaking and are not one to shy from a video camera then an online video business can be your ticket to success. You can begin by creating simple “how to” tutorial videos then move on to more complex topics that are within your niche and engaging to watch.

The most popular and free online video website company would be YouTube. They have a monetization option in their settings that signals Google to include short clickable ads with your videos.

You get paid whenever a viewer clicks on the ad. YouTubers with a big following are generally offered payment by companies if they try or promote the company’s services and products in any of the video releases.

Exciting isn’t it? How about giving either of these 2 online businesses a try to see which one would best suit you? Keep in mind that just like any business venture, online businesses may take some time before you see the fruits of your hard work, but patience is a virtue.