The Revolution of eCommerce
If you are planning to start your own e-commerce website, you have probably read about the drop shipping business model. However, is it legal to drop ship? How is the regulation in your country? If you want to know about the legal status of drop shipping, keep reading!
Drop shipping business model
Drop shipping has become very popular over the last few years. This way of cooperation between enterprises allows small B2C stores to sell a huge range of products without stock. By following this eCommerce model, small businesses face very low risk and are required a very low investment to start their activity.
You are probably wonder how is that even possible? How can anyone sell stuff they do not own or do not have on stock? The answer is Drop shipping.
The drop shipping model is very easy. On the one hand, the small retailer or B2C business will deal with the final customers, it will create a website to start selling hundreds of products. Once the order has been place by the final customer, the retailer will get in touch with the supplier (the manufacturer) to request the shipping of this product.
Is drop shipping legal?
Yes! You may think of drop shipping as an outsourced warehouse. The B2C is selling products they have temporarily stocked somewhere else (maybe even in other country), but all the usual regulations of the country will apply to the retailer as if he or she had stock (guarantee, terms and policies, etc).
Drop shipping is not only legal, but also one of the best ways to start an online business with very low risk and investment.
Is drop shipping profitable?
It can be, for sure. However, you need to find the right supplier for your products. Most drop shipping companies will not be giving you very high profit margins, so you will need a very high amount of sales per month to make a living out of drop shipping.
In any case, drop shipping is a business model that will not require much of your time, so you can create several niches to increase your sales and then let them running. The amount of attention your drop shipping website needs is very low!
Is drop shipping worth it?
Absolutely. Specially if you do not have enough capital as to start a full traditional online business. The investment necessary to start a drop shipping business is very low, near to zero. Actually, you only need to set up a website, find a hosting and design the appearance of your online store. Once that is done (for less than $100 a year), you can start spending a few extra bucks on promotion and advertising to increase the visitors to your website.
So, yes, drop shipping is absolutely worth it!
Is drop shipping dead?
Drop shipping is far from being dead. The drop shipping model has just started and there are still not too many people aware of this business model. Actually, in most parts of the world people are totally unaware of this blind shipping system.
There are thousands of opportunities for entrepreneurs who want to join the drop shipping world. However, make sure you start dealing with the right suppliers!