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Drop Shipping – Why It’s Right For You

Explore the many reasons why you should start an online drop ship business

By: Bailey Holtz

Drop shipping is one of the incredible benefits of building a business in the internet age. More and More people are turning to the web to do their shopping. Businesses are now being freed from the need to have products on hand in a brick-and-mortar store. Consumers are shopping online and having products shipped right to their doorsteps! That’s why drop shipping becomes a very viable and very popular option for businesses. It’s a way to keep costs down while still offering the same products and excellent service to customers. Sound too good to be true? It’s not! 

In this article, we at Pure-Ecommerce help you explore the world of drop shipping. Including its benefits and possible obstacles. Read on to discover the reasons why an online drop ship business is right for you…

The State of E-commerce Today

The internet has completely transformed the way in which we buy and sell things. Formerly, we would have taken a dreaded trip to a brick and mortar store. Where we may or may not find just the right product. Now, we can simply go online from the comfort of our homes. Then with a few clicks can find just the right product to purchase! 

According to Digital Commerce 360, global web sales neared $3 trillion in 2018. This is increased the online’s share of total retail sales to the north of 15%. While ecommerce sales in the  United States reached $513.61 billion online in 2018 according to The U.S. Department of Commerce. This was up 14.2% from 2017. 

By 2022, global digital sales are expected to near $6 trillion. More than that, it has also transformed the lives of millions of people. It offers them completely new sources of income. According to the incfile blog, over 38 million people own their own e-commerce business, which they operate from home. The exciting news is that as e-commerce continues to grow! There will be even more innovations and systems of support for business owners—including drop shipping. 

How Does Drop Shipping Work?

Drop shipping, while a relatively new innovation in selling, is not complicated or complex. In fact, it’s nothing more than a simplification of the entire selling process! You, as the online business owner, do not keep products in stock. You simply receive the order from the customer and pass it along to your vendor. Who will then ship the product directly to the customer – that’s it!

All the management of inventory, shipping, and other logistical details are handily taken care of by your vendor. Leaving you to focus on other aspects of your online business. If you would like more of a detailed explanation, check out this helpful page on our website, “What is Drop Shipping?”. Where we answer some of the most common questions about drop shipping. 

Benefits of Drop Shipping

There are many benefits to making the decision to start an online drop ship business. Here are four of the top benefits we think you should consider…

  1. Profit Margins: Your profit comes from the mark-up you put on your product. The average margin range for the drop ship vendors we work with at Pure-Ecommerce is 35-50%. Of course, it is best to price the products you sell at the suggested retail price set by your vendors in order to stay competitive. However, many vendors will allow you to price the products you sell for them at or above their suggested price. This will increase your profit margin but may also outprice you from your competition. 
  2. Products are Outsourced: Save yourself the hassle and personal stress by outsourcing much of this time-consuming work. You can focus solely on your web presence and your marketing efforts. Then leave all the logistical details to the pros. Having more time means you can grow and expand other aspects of your business. 
  3. Product Variety: By working with drop ship vendors you are able to formulate your own mix of products that you want to sell. Plus, you do not need to have developed your own product or product collection before starting your own ecommerce business. Whether you have a passion for pets, furniture, children, fitness, outdoors, etc. there are many different niche market industries out there so you can put your passion to work for you!
  4. Low Risk: You will find that the risk of damage is lower when you drop ship. This is because fewer items are being moved from place to place. For example, if you were to order your inventory wholesale and have it transported to your storage facility. There is any number of accidents that could happen en route to damage or harm your products. When you drop ship, only one product is shipped at any given time, leaving less room for error. 
  5. Low Overhead: Additionally, if you feel trepidation about leaping into a totally new business venture and having to spend lots of money to hold inventory. Then stop worrying! By working with drop ship vendors you will never have the need to hold product inventory. This means you don’t have to spend money to acquire inventory and storage space. This means there are virtually no overhead costs. All you have to pay for is your website and other minor costs. Rest easy knowing you aren’t putting your life’s savings at risk to pursue your dream!

Challenges of Drop Shipping

While there are numerous benefits to drop shipping, there are also some challenges too. Here are a few we would like you to consider. Don’t worry, they’re not that bad!

  1. Drop Ship Fees: While simple and untaxing, drop shipping is not every business’s magical formula for success. For instance, some vendors charge fees for drop shipping, which may lower your profit margin. However, sellers like yourself may choose to figure that cost into the cost of the product, passing it along to the customer. Again, you want to stay as competitive as possible so you may decide to “eat” the cost. Just think, it is better to pay a small drop shipping fee to your vendor versus having to hold inventory and store it in a facility. 
  2. Lack of Branding Control: Another issue to consider is the comparative lack of branding control you have over your products. When the product arrives at a customer’s doorstep, they may not be able to see your business’s name or any of your branding on the packaging. It depends upon the vendors you work with whether or not they will add your logo label to the package as some will and some won’t. This could be considered a missed opportunity for your business to get its name out there. However many sellers feel that the costs and labor saved by drop shipping make up for this. Plus, you have other ways to brand yourself with your customers. For examples, direct emails before, during and after purchasing, social media, newsletters, etc. 
  3. Not All Vendors Offer Drop Shipping: Unfortunately, not all product vendors offer drop shipping. You will need to spend time making inquiries with vendors to learn if they do, and what their stipulations are if any. Once you have set up that relationship, however, moving forward will be far easier than it would be if you had to buy your own inventory. 

Drop shipping is a great option for many new business owners, but it does have some drawbacks. It bears careful consideration and once you have a solid stream of income, it might also be worthwhile to consider securing inventory. It depends on where you want to take your business! 

How Pure-Ecommerce Can Help

If drop shipping sounds appealing, you’ve stopped by the right place! Pure-ecommerce has years of valuable experience working with vendors who drop ship. All vendors who supply our businesses-in-a-box offer drop shipping, so you won’t have to make inquiries or do research. Just buy your site and go! 

Take advantage of the incredible business opportunities the internet opens up for you. Thanks to the digitization of the buying process, there are many costs you can eliminate as a business owner. While drop shipping is not always possible, it is still worth looking into, along with all the helpful tools offered by Pure-ecommerce. We are experts on the ins and outs of setting up a new business. We offer our clients access to our exclusive eLearning Library, plus step-by-step consulting to help you get started.

Take a look at our helpful ebooks—one of which is on drop shipping – to explore this option further. To see if starting an online drop ship business is right for you!

Start An Online Business This Summer – Why It’s A Great Time!

Reasons Why Summer Is A Great Time To Start An Online Business

By: Bailey Holtz

Why not take on a real summer project that will give back to you throughout the year? Start an online business this summer, and enjoy the incredible personal reward of owning your own site. Plus, the incredible monetary reward of an entirely new source of income for you and your family. 

If you’ve never before considered becoming a business owner, we think you should. We believe starting an online business is made easier through the helpful services offered by Pure-Ecommerce. Plus, it allows you to bring your own passion and expertise to your business. You can turn it into something meaningful to you. Isn’t that what summer projects are all about? 

Read below to learn why summer is the best time to get your online business off the ground! 

Ecommerce Is Thriving

The idea of starting an online business sounds fun! Right? You get to select a ready-made or custom built website. Then you’re able to source merchandise from drop shippers, market those products, and work to grow your business. All of this sounds great but before beginning, you are probably wondering if the e-commerce marketplace will continue to grow. Good news! The forecast for online business ownership is sunny! Never before have online businesses performed quite this well. 

According to Oberlo, it is estimated that in 2019, there will be 1.92 billion global digital buyers. That’s about 25% of the entire global population surfing the web, just waiting to come across your site! By 2021, that number is expected to have grown to 2.14 billion digital buyers. 

An equally impressive statistic is the percentage of retail sales currently taken up by online retailers. Ecommerce sales account for 13.7% of retail sales worldwide, a number that is expected to rise to 17.5 by 2021, according to Statista

Finally, the icing on the cake is the fact that, according to KPMG, 65% of shoppers compare prices online while they are shopping in retail stores. So, if you own an online business and are able to sell goods at a lower price point than brick and mortar stores. Then you stand a very good chance of being noticed by a consumer seeking better deals online. 

The takeaway: the power of e-commerce should not be underestimated. Start your online business now and ride the wave of digital business! 

Work from Anywhere!

Now that you’ve been sufficiently convinced that e-commerce is a winning enterprise. Here are some reasons why summer is the best time to launch it! 

The beauty of digital commerce is that you can do it from absolutely anywhere; all you need is an internet connection and a laptop. This makes it the perfect project for the traveling months when vacationing. You can take your business where you go. Whether you are traveling throughout the country, or just to the comfort of your own backyard. Just picture it, you’ll get to take in the sun and spend time with your loved ones. All while building your own business from scratch! Or you can supervise your kids at the pool while you avail yourself of the array of Pure-Ecommerce businesses-in-a-box options. 

We believe starting an online business makes for a great summer project! Are you ready to work hard? Do you have the desire and dedication needed to start an online business? Do you have the drive to succeed? Then we believe you can build an online business that gives you the freedom and flexibility you have been searching. Plus, it will benefit you and your family in the future too!

Work Smarter – Not Harder

If you are someone who hates inefficiency and lost hours, then you must hate working in an office. The commute, the emails, the miscommunications, the oversights…you end up spending many more hours every year than you are paid for doing auxiliary tasks related to your job. Do you have the desire to become independent?

If you work in an office and have been dreaming of leaving your current position. Then you need to make this the summer when you make your career transition. Take a few months to set up your business, so that come fall, you’ll be ready to say “good-bye” to traffic, lousy coffee machines and ugly cubicles. 

Then say “hello” to the workspace designed exclusively by you: your own home. This extra time you spend during the summer will pay off handsomely by freeing up far more time down the line for the things you love and care about. While you’re on vacation or taking some summer days off, a few hours dedicated to your new online business can free you from years of laboring away in a corporate environment. Now doesn’t that sound like you will be working smarter – not harder!

Friends and Family: Your New Co-Workers

If you could build an online business with anyone, who would it be? Probably the people you like most: friends and family, right? When you start your very own online business from home, that becomes a very real possibility! 

Before starting your e-store you can gather friends and family together for a summer barbecue to gain their input on your initial ideas. Maybe you have a few different industries that interest you and are having a difficult time deciding on the right one for you. So, ask for feedback! Or if you’ve searched and searched through the collection of ready-made websites offered at Pure-Ecommerce and simply can not pick your favorite. Show your top choices to your guests. Ask their opinion of the domain name, overall design/look/feel of the website, the categories, etc. You can even have a silent vote for a little extra fun! Plus, it will help you make the ultimate decision on the right website for you to start this summer. 

Working from home allows you to solicit the feedback and knowledge of the people whose opinions you trust most. Gather friends in your backyard, serve some appetizers and drinks, then start asking them to test out your platform. Perhaps you already own an online business and need some additional help with tasks you don’t have time for on a daily basis. Get exactly the help you need from Pure-Ecommerce, and then have your friends check out your fresh online store. They’ll be delighted to be asked for their feedback, and will love getting involved in your idea from the get-go. Plus, you have far more excuses to get together! 

If you’ve spent much of your working life mourning the lack of time you have for your family, starting your online business at home also allows you to spend far more quality time with your loved ones. Particularly in the summer, when your kids are free from after-school activities (kids these days are busy!), you want to savor every minute you can get with them. Working from home allows you to do just that: you can make progress on your website while you watch your kids play in the backyard, chat with them while preparing dinner, or sip lemonade on your porch at dusk. Now doesn’t summer sound like a great time to start your online business?

Just in Time for the Holidays!

Though it may sound crazy to talk about the winter holidays right now, summer is actually the perfect time to get your business up and running so it’s ready for the big spending season. In 2018, according to Statista, online holiday spending in the U.S. totaled a whopping $123.73 billion. Think about how much money that is. Then think about how some of that money could be yours. Kinda gets your engine roaring, right? If you can get your ducks in a row during the warm months, by the time winter rolls around, you will be well prepared to take advantage of this incredible period of spending in the winter. Remember: the summer bird always catches the winter worm!

Have you been in search of the perfect summer project? Are you ready to rule your life? Then we invite you to learn more about how you can start an online business this summer!

Owning your own online business will give you a lifetime of fun, entrepreneurship, and reward! Visit Pure-Ecommerce now to find out how our exceptional team can help you get started… 

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