Do you have a million-dollar e-commerce business idea? Are you all set to convert your dream of starting an online business into a reality? Wait - before turning your dream into a reality, answer this question. Do you have enough capital to maintain a warehouse and inventory? If not, plan out an alternative strategy to start your dream business. This is where dropshipping can come to the rescue. Dropshipping is the buzz word that is taking the e-commerce industry by storm. According to recent statistics, dropshipping is used by almost a quarter of online businesses as a primary order and fulfillment method. With drop shipping, e-commerce owners no longer have to stress about the on-time delivery of custom printed products to customers.

As an entrepreneur, what's the one thing that excites you about starting your own business? Is it the ability to start an online business without a substantial initial set up cost? Now, you might think this is not possible. But with dropshipping, this dream of young entrepreneurs is all set to become true. Dropshipping is the e-commerce fulfillment model that allows online retailers to market products, take orders from their customers, and hand the responsibility for fulfilling the orders to on the drop shippers. Dropshipping gives freedom to online retailers to focus on expanding their business.  

So, if you think that starting an online business is difficult, here are some reasons why dropshipping can make the startup journey smooth and hassle-free for you.

• Low Overhead Costs: With drop shipping, online retailers can enjoy the benefit of lower overhead costs. There is no need to carry an inventory. So, if you don't want to stack boxes in a storage unit or your garage, partnering with a dropshipping firm is the best option for you. And, since you don’t need to hire additional labor for picking, packing, and shipping orders, you save on the labor cost. Also, you get freedom from purchasing packing materials. With drop shipping, running a successful e-commerce business will no longer be a challenge for budding entrepreneurs.

• Scale Quickly: Dropshipping suppliers offer a range of products and promise to deliver the products right on time to customers on behalf of retailers. Since the dropshipping firms hold a large-scale inventory, whenever there is a spike in demand, the service providers will scale the products quickly to customers. To understand this, let's take an example. Let's say a t-shirt retailer has only a small quantity of shirts in hand and the demand suddenly goes through the roof. In such situations, if you sell products on your own, you will not be able to meet the high demand, resulting in a lost opportunity. On the other hand, by partnering with the dropshipping firms that offer a range of products like custom men’s clothing, you will be able to satisfy every order right on time.

• Create a High Customer Lifetime Value: What’s the one thing that gives you the upper hand over competitors? It's the loyalty of your customers to your brand. But creating customer loyalty is not a child's play, especially when you are a budding online retailer.  Getting new potential customers and retaining existing ones is the most difficult and most expensive e-commerce activity. But drop shipping can remove that source of stress for online business owners. Since the drop shipping service providers carry a wide range of products, it becomes easy to market more items to your existing customers. Higher product offerings will increase customer lifetime value.

• Less Financial Risk: When you start a new business, you have to face several risks, financial risk being the one that tops the list. Higher financial risk is the main reason why budding entrepreneurs often give up on their dream of starting an online business. If you are in the same boat, dropshipping can come to your rescue. Dropshipping-powered e-commerce involves pretty low risk.

• No Delivery Hassles: With the drop shipping service, you no longer have to stress about order fulfillment. As a business owner, you can sit back and relax while the service provider does it all for you. From organizing and tracking to packing and packaging items, everything will be done by the third-party supplier. Your only job is to ensure that customers receive the products on time.

Want to try your hand at making money through the online business? If so, dropshipping can help you to bring your brand into focus by offering a wide range of products like custom phone cases and delivering them to customers right on time.