Dropshipping

Print on Demand, or POD, is a business model where you can create designs and then add them to a large variety of products which you can then sell. Third party fulfillment companies will print your design on their products and ship them directly to your customer. POD is a great business model for artists, designers and entrepreneurs alike.

Dropshipping Tools and Courses

Tools & Software

Online Courses

Dropshipping Overview

Difficulty Level

Dropshipping can be a great business for beginners because it doesn’t require the capital investment of traditional physical product businesses.

There are also many tools that can help automate the entire process so you can focus only on marketing and customer service.

Average Timeframe for Results

Dropshipping websites can be launched fairly quickly.  If you’re running paid ads like from Facebook or Google, you can see results in a matter of days.

However, If you’re relying on SEO to get traffic, that is a much longer process and is likely to take several months at a minimum.

Startup Costs

Droppshipping businesses can be start for very little money down.  There are free ecommerce solutions like WooCommerce or paid ones like Shopify which is only $30/month. 

The largest expense will be when it comes to advertising your store, but ultimately that’s based on you and how much you want to invest into the business.

Profit Potential

Dropshipping can be a profitable business venture with owners making upwards of 6 figures a year.  

There is really no limit to how much you can make with a dropshipping business.  In fact, one of the largest retailers online (Wayfair.com) operates a dropship model and brings in billions of dollars a year in sales. 

Pros:

Low-risk versatile business model with low startup costs

No inventory or fulfillment requirements

Wide range of products to sell

Can be run remotely from anywhere with an internet connection

CONS:

Smaller margins than branded products

Quality and supply chain out of dropshippers control

More difficult to establish brand

Frequently Asked Questions

Dropshipping can be a profitable business venture, with some owners making up to or beyond $100,000 a year, with very little investment. A successful dropshipping business can be run from home — or anywhere — for a few hundred dollars each month. However, the success of a dropshipping business depends on a number of factors:
  • How aggressively the owner markets their store (Facebook, AdWords, SEO, etc)
  • Brand strength
  • Products sold
  • Understanding of dropshipping business/markets
As mentioned above, profit margins for products can be slim, and most of the price of the sale will return back to the manufacturer. By keeping prices low (accepting a smaller margin), a shop owner can become competitive in their market and increase the chance of a sale — thus relying on volume to drive revenue. By prioritizing the needs of customers through competitive pricing and high-quality customer service, dropshippers are able to see the pay-off in their profits. Also choosing products strategically, however, a shop owner can increase their margins. For example, selling products that are difficult to store, or are heavy can give you a competitive edge over traditional retailers. Most of all, a successful dropshipping business requires an owner’s commitment, creativity, and passion. Because the business relies heavily on front-end marketing, it is up to the owner to really sell the product, or someone else will!
 

Dropshipping is often criticized as either oversaturated or unreliable. Trends spark and die in a matter of months, leaving sellers looking for new trends or for more reliable products. A steady product niche can minimize a seller’s stress around whether their products will sell the next month.

The top steady categories of products are:

  • Women’s Clothing and Accessories
  • Jewelry
  • Home & Garden
  • Beauty & Health
  • Men’s Clothing and Accessories


These are also the highest performing niches of Dropshipping products. Within these top categories are some interesting popular item types. Within Beauty & Health, facial sprays and eyeliner stood out as most-purchased. In Women’s clothing, intimates were purchased more than any other clothing type. And in Jewelry, necklaces were hot. Understanding the categories that perform highest is crucial to setting up a successful dropshipping business. While keeping up with changing trends can also pay well, it is wise to offer a combination of steady and grossing products. There is also incredible value in capturing unexpected segments of the market. A store with hard-to-find items will pull in customers needing that item and lacking other options.

OnBiz.com

Discovery & Reviews of online business tools & services.