DROPSHIPPING: A Form of Entrepreneurship?
You don’t know what dropshipping is?
Trust me to write on it in the simplest form.
Dropshipping is a retail method where an online store does not hold products in stock, does not store products in advance, does not own any product to herself but instead partners with a supplier who sends the product directly to customers while the dropshipper focuses on marketing and sales.
There are three common dropshipping business models:
- General dropshipping – selling a wide range of products
- Niche dropshipping – focusing on a specific niche or target audience
- Private label dropshipping – selling products under your own brand
Dropshipping is a popular business model, particularly in Nigeria. It offers a low-risk way to enter the entrepreneur space. The lack of inventory requirements makes it an attractive option for those wanting to start a business with limited capital. It allows individuals to take on the role of a business owner, setting their own prices, managing marketing, and handling customer service.
One of the key advantages of dropshipping is its flexibility. Store owners can sell a wide range of products without having to hold inventory, which allows them to test different markets and products without significant financial risk.
While dropshipping can be profitable, its success depends on finding reliable suppliers. Quality control can be a significant issue, as store owners have limited control over product quality. Shipping issues can also arise, leading to delays or problems with customer satisfaction. Effective communication with suppliers and customers is crucial to mitigate these risks.
After a question and answer moment with a few dropshippers, I concluded that most of them face the same challenges of poor communication and agreement with suppliers, having less control over the product quality. Some also face disappointment from suppliers, which ends in disappointing customers.
Can you remember the time you showed interest in a recently posted product, only for the dropshipper to tell you it’s out of stock? Only for the dropshipper to subsequently inform you that the product is out of stock. It’s either the product was never available or there were too many dropshippers depending on the supplier. This is a frustrating scenario often encountered in dropshipping.
To succeed in dropshipping, it is essential to choose reliable suppliers and set clear expectations with customers.
There are successful dropshippers who have experienced the benefits of no capital and flexibility. Yes! They make profit without product. It takes real knowledge and skill.
However, as the business grows and there’s a consistent demand, investing in inventory is a good move. When you store products, you maintain control over branding, packaging, and overall business image. This enables you to consistently present your products and interact with customers in a manner that accurately reflects your brand identity.
While dropshipping can be a legitimate form of entrepreneurship, merely copying and reposting products online or from a brand without adding value, and expecting passive income with minimal effort, is unlikely to yield a sustainable business model.
Many successful dropshippers go beyond just listing and reposting products; they build branded stores.
Entrepreneurship involves innovation, strategy, and a long-term mindset. Not everyone who tries dropshipping brings that to the table. A dropshipper is an entrepreneur if they treat dropshipping like a real business.
An entrepreneur takes the risk to start his own business based on his idea or a product he has created while he reaps most of the reward of the business.
Entrepreneurs are majorly known for two things:
- INVESTING IN BUSINESS
- TAKING RISK
You aren’t an entrepreneur until you do these two.
Take Control of Your Business.
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