eCom Success Academy Dropshipping Facts Exposed – The Pro’s And The Con’s
If you spend anytime on the internet exploring new business opportunities, you will be exposed to the dropshipping business model very quickly. Obviously, as with any business opportunity, those trying to convince you of its merits will be keen to highlight the positives, of which there are quite a few. H
owever, it is also important to note that as with any potential business venture, there will also be negatives and in the aim of this article to highlight both arguments, to enable you to make an informed decision.
The Positives of the eCom Success Academy Dropshipping Model
There are a number of benefits that this model of business offers to the online entrepreneur
- Reduced Costs For Stock Inventory – One of the biggest expenses any small or even medium sized business faces, is the amount of money that is tied up in stock. If a wrong decision is made, and a certain product doesn’t sell as expected, then there is a lot of financial exposure. The beauty of Dropshipping is that as the vendor you never have to acquire the stock, you simply order it as you sell it, so the intial and ongoing stock costs are minimal. If a product doesn’t sell, you simply remove it from your store and test something else.
- Ease Of Operation – All of the big problems when starting a business are effectively removed, no stock, no storage, no staffing concerns, no inventory tracking.
- Virtually No Cost Of Doing Business – Compared to a regular bricks and mortar business the dropshpping model can be run on a literal shoestring, from anywhere in the world. Provided you have a website, internet access, and a laptop, you are good to go. Check the whole review here: http://ecomsucessacademyreview.com – discount and review
The Negatives of the Dropshipping Model
In the excitement and enthusiasm of starting a new business, many people forget to examine the negative aspects of any model, so here are the things you should also consider
- Low Margins – For the very reasons mentioned above, and consequently the reason why you are considering getting into the business, the barriers to entry are very low. While this is beneficial to you, it also applies to everyone else in your situation, meaning that margins are continually squeezed. You will need to sell in serious quantities to ensure that you make a worthwhile profit.
- You Are Not In Control Of Stock Levels – The eCom success academy dropshipping model means that you can never be in total control of the stock, nor for that matter know how much stock is actually When delivery fails due to your supplier being out of stock, it is your company that the customers will be upset with, not the supplier.
- Shipping Problems – When a customer places an order for one or more products from your store, there is no guarantee that all of those products will be despatched by the same supplier. It wouldn’t be a wise decision to charge your customer individual shiping charges, so you may well have to cover this unexpected expense, which will further cut into your profit margins.
- Errors or Damaged Products – Every company will make mistakes, delivering the wrong product, or a damaged item. As the vendor of that product, you have no choice but to rectify the issue if only to salvage your reputation. This may seem unfair and frustrating, but it is one of the consequences of the dropshipping model exposed by eCommerce success academy. Find more here: https://www.business24-7.ae/new-bankruptcy-law-will-increase-confidence-and-investment-in-uae/
The eCom Success Academy dropshipping model can bring huge benefits to any business, but you need to consider everything properly before committing to this, as the negative aspects are the ones that will hurt you and your business.