Enpedia.net - In these modern days, the use of internet can be separated from our life. With internet, you can basically get everything you want, such as searching for information, entertainment, shopping, and even earning some money.
E-commerce, commercial transactions done on Internet electronically, becomes more popular this day due to its simplicity. One of the type of e-commerce that is popular nowadays is called dropshipping.
This commercial activity is a method of retail fulfillment where the items sold by a store are not kept in stock. The store buys the product from other party and this third party will ship the items to the clients directly.
In conclusion, the retailer never actually handles or see the product.
The different between conventional retail model and dropshipping is the fact that the merchant does not own inventory or stock it. The merchant buys inventory according to needs from manufacture or wholesaler to fulfill the demands.
Home decor product is one of the most popular item to be dropshipped. There are many home decor dropshipper in the world, mostly in developed country.
In this article, we will describe some of the advantages and disadvantages of becoming home decor dropshipper.
The first benefits of becoming a home decor dropshipper is its easiness to scale. In conventional business, the more you receive orders the more works you will get.
Home decor items are not easy to handle, and for some people, this can be very tiring and time consuming.
However, if you become a dropshipper, almost all the works will be handled by the suppliers, which give less work and pains to handle. This one of the biggest advantages of being a dropshipper.
The second benefit of being a home decor dropshipper is the broad product selections.
As a dropshipper, there is no need to purchase the item first, so you are able to offer various items to your customers. Once the supplier add new items, you can immediately add the said items on your website without additional cost.
Another benefit is the flexible location. As long as you have internet connection on your device, the business can proceed anywhere anytime.
The point is to communicate with both customers and suppliers consistently to make sure your business is managed and run well.
The overhead expense of a dropshipper is notably low compared to traditional e-commerce method. A lot of successful home decor dropshippers are proceed with only a laptop at home, which does not cost that much.
Surely, as your business grow, the overhead expense will increase, but it will not be as much as traditional e-commerce business.
Become a home decor dropshipper is also very easy to start. As a dropshipper, you do not need to put extra effort on ordering products continually, managing the level of stocks, handling inbound and returns shipments, tracking inventory, shipping and packing your products, and paying or managing a warehouse to store your stocks.
The capital required for dropshipping is very low compared to conventional e-commerce business. This is probably the most advantageous aspect of dropshipping.
You do not need to invest hundred dollars to stock the inventory in contrast with traditional method. You only need to purchase certain product once an order is made and paid by the clients.
Even though the capital is low, it does not means you can get a successful business. In fact, a lot of people earn fortune by becoming a dropshipper, especially in home decor, as most home decor products are quite pricey.
Despite all the benefits it offers, becoming a home decor dropshipper also has several disadvantages. Those disadvantages are listed below:
• Supplier errors: this type of mistake is something that you cannot control, and yet you still need to be responsible for it. Even though you make a partnership with the best suppliers, it is still possible for them to make mistakes. Because a dropshipper is the one who connect the customer and the supplier, it means you have to be responsible for your supplier mistakes and apologize to the customer for it. Make sure to use the service of trustworthy suppliers to avoid repeated mistakes that will damage your reputation
• Shipping complexities: if you use multiple suppliers and one of your clients order several items from different suppliers, you may get some headache in counting the shipping fee. The shipping from different suppliers may cause your customer to think that you scam them for overcharging the shipping fee. You have to think about more strategies to avoid charging the customer for extra shipping fee without botching your own business.
• Inventory problems: if you use multiple suppliers that also fulfill demands for other dropshipper, the inventory of these suppliers may change rapidly. Frequent updates are needed to ensure the products you offer in your website are available in the suppliers. Effective communication with your suppliers is also important to ensure that your suppliers always inform the availability of their stock on daily basis.
• Low margins: this can be considered the biggest limitations of dropshipping. To develop the revenue and attract customers, a lot of merchants will start their shop by selling products at an extremely low price. These merchants only invested a little to start their business to ensure they are able to afford to run on small margins. The customer service and website of these merchants are often low in quality. However, the customers will still compare your products’ prices with theirs, which increase the competition and the possibility of profit margin being destroyed. Fortunately, this condition can be mitigated by choosing a niche that suit well for dropshipping.
Those are some of the advantages and disadvantages of being a home decor dropshipper. This is certainly a promising way to start your career in home decor business.
As long as to take several precautions before starting and put a lot of efforts by carefully consider and plan your business, you can actually solve all the problems you may encounter in the future and be a successful dropshipper for home decor products.