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You’ve probably considered starting a business at one point or the other. Whether you need a source of income, or you have your main gig but you’re looking for a side hustle that can bring in extra income, running your own business has probably crossed your mind. However, you also know that starting a business from scratch is not something everyone can do, especially when it requires a lot of capital. What if I told you that you can start your business without actually stocking the goods?

Here are 10 things to know about drop shipping:

  1. Drop shipping is a business model which allows you to run your business without maintaining inventory, owning a warehouse to store your goods, or even having to ship the products to your customers by yourself.
  2. Drop shipping requires you to have an online store which could be your website or even a social media page and eliminates the need for a physical store.
  3. All products remain with the manufacturer. When someone places an order for a product they see on your site or page, the manufacturer is informed automatically, or manually by you. The manufacturer then packages and delivers the order to the customer in your name.
  4. Drop shipping is a low risk business. If you don’t sell anything you don’t really lose anything since you don’t have products in stock, unlike when you have a shop full of products. However you need to keep track with what your supplier has in stock and what’s out of stock, so as to communicate same effectively to your customers.
  5. With a drop shipping business you can join the #WorkFromAnywhere club, since you don’t have to be tied down to a particular location. Whether you’re in your bedroom or on the beach, you can receive orders online and the manufacturer handles packaging and delivery.
  6. It’s easier to scale; to make more sales, all you need to do is attract more orders, which will be passed onto your drop ship supplier. They handle everything else and you earn more money, unlike a traditional business owner who would need more capital, space and staff to grow.
  7. If something is damaged during delivery that’s not your loss, because the supplier handles the delivery, not you.
  8. The customer is ordering something from your site/page. If they’re dissatisfied you’re completely liable, since you’re the one they’re buying from and your drop ship arrangement is not their business; even if the issue was the supplier’s fault. As such, you’ll need to partner with a reliable supplier lest you tarnish your brand and reputation.
  9. You can’t expect to make as much money per order as you would have if you bought the goods wholesale and sold retail. With drop shipping the profit margin is understandably lower. To earn a lot, you need a lot of orders.
  10. Drop shipping is a good way to wet your feet as an entrepreneur, since you get to offer customers value, hone yourmarketing, sales and customer service skills, and enjoy the pleasures of profit, without all the other work that comes with running a business.
Are you entrepreneurial? Would you like to go into business with little or no capital? Have you got a laptop and internet connection? Consider drop shipping today!

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This article was first published on 30th July 2018


Joy Ehonwa is an editor and a writer who is passionate about relationships and personal development. She runs Pinpoint Creatives, a proofreading, editing, transcription and ghostwriting service. Email: pinpointcreatives [at]

Comments (1)

One thought on “10 Things You Should Know About the Drop Shipping Business”

  • I’d like to know more about this. Thanks

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