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Does Dropshipping Still Have Potential As A Business Opportunity?

Does Dropshipping Still Have Potential As A Business Opportunity?

Dropshipping has without doubt changed for the better

. As a potential seller of drop ship products, its great that youre doing research about the industry, because youll need to learn the new marketing techniques so you can promote your business more effectively. Keep up with the trends and learn about search engine optimization, Meta tags, online newsletters, target keywords, social book marking sites, and online traffic.

Dropshipping Used to Be So Easy

Years ago, you started a dropship business by creating an online presence by opening an eBay store, and you found a distributor to supply your products. Your distributor let you use their product descriptions and pictures in order to sell your products. Customers browsing eBay clicked on their Buy it Now button, you emailed their information to the supplier, collected payment, and pocketed the difference between the suppliers price and the actual retail price.

It was easy to find wholesalers stocking the products you were interested in: you just had to subscribe to a drop ship directory, send an email to your dream products producers, and send them an email telling them you wanted to set up a wholesale distributor account. Drop shipping was beyond doubt a next generation, amazing idea that not many people knew about yet.

EBay is no longer the key element for dropship success

There are lots of challenges associated with selling drop ship products on eBay nowadays. More and more sellers are offering the same items, so its getting much harder to compete. There are also a host of fees you must pay to eBay for listing and selling your items, and these can seriously cut into your profits.

Another reason why eBay is not recommended for this business model is the recent sudden increase of direct from China dropshippers. This simply means that many of the Chinese drop shipping companies are double dipping by actually selling items on eBay themselves. You just need to take a look at the electronics category to see how many sellers have their location listed as Hong Kong or other locations in China.

Because of these issues, it no longer makes sense to use an eBay store to sell dropship products.

What Does This Mean for the Future of Dropshipping?

Online storeowners still have a number of options, including Amazon and eCrater, to showcase their dropship products. Dropshipping continues to gain popularity with online retailers because it allows them to run a positive cash flow business while freeing up storage space. Its important that these storeowners do not see dropshipping as a get rich quick scheme, so that they can adapt to maintain the kind of profits that will sustain their businesses.

If youre trying to make a permanent, main income source out of dropshipping, then prepare to work 40 to 60 hours each week. This type of vigorous effort wont go on forever, of course. It typically takes between two and three years of intense website advertising for an e-commerce site to take off.

by: Wendy vanDijk
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Does Dropshipping Still Have Potential As A Business Opportunity?