Pros And Cons Of Having A Drop Shipping Business While At Home

Are you currently at home and thinking of starting a drop shipping business? A drop shipping business sells products on behalf of a third party, meaning you don’t have to own stock. Here are some of the pros and cons of starting a drop shipping business while at home.

The Pros Of Having A Drop shipping Business

1. You Can Run It From Home. As you don’t own stock or require a business location, all your work can be completed from the comfort of your own home.
2. Easy To Manage Demand. A drop shipping business will purchase the product from a third party and sell it directly to the customer, making it incredibly easy to manage demand.
3. Wider Product Range. In theory, you can advertise and sell as many products as you want from third party suppliers.
4. Lower Operating Costs. The costs associated with a drop shipping business are similar to the fees for maintaining an ecommerce site.
5. Lower Start-Up Costs. You won’t have to pay for stock or warehouse storage.

The Cons Of Having A Drop shipping Business

1. You Can’t Control stock. If something you’re selling goes out of stock, you can’t physically restock it yourself.
2. No Quality Control. You have to take the word of the third party supplier that their product is of high quality.
3. Shipping Is Expensive. Shipping costs vary daily and can get complicated and expensive.
4. Reduced Gross Margins. Drop shipping is a competitive market, so prices may go up, and you may not get a discount from suppliers.
5. Accountability. Although your business is separate, the customer sees you as the supplier, so it’s your fault if their order is incorrect.

Consider starting a drop shipping business while at home, and see if your business takes off into a profitable new company.

Speedshift | Shipping freight and Cargo nternational call 0845 519 0270