Whether you are looking for a side hustle or a new full-time remote job, dropshipping is a perfect way to find a balance between your private and business life. Numerous dropshippers make tons of money by selling the products within their online stores, so you probably wonder what are the exact sums of money that one can make with dropshipping. Well, I need to warn you that the amounts of money you can make are mind-blowing.
What Is Dropshipping?
Dropshipping is a type of order fulfillment where the seller buys inventory from a third-party seller when he receives the order and does not keep the products in stock. Dropshippers are actually middlemen because they practically sell someone else’s products through their own channels. The main benefit of it is that a dropshipper decides on the final price of the product, which can be a few times bigger than its wholesale price, so there comes the profit.
Pros & Cons of Dropshipping
Pros of Dropshipping:
- Small investment
Dropshipping is a great method since it does not require a lot of investment. You do not have to prepare a full stock of products and then hope they will sell.
- Simple business model
This model is extremely simple because a third-party supplier handles everything from storing and packing to shipping your products. The only thing you have to think of is selling and promotion.
- Low risk
If there is no investment, there is also no risk of losing money. Moreover, if the products you chose are not working well for you, you can easily switch to another inventory.
Cons of Dropshipping:
- Highly competitive
Dropshipping is extremely competitive due to its simplicity. Therefore, you need to do research on your potential competition and choose a niche within which you can stay competitive.
- No direct contact
Since third-party suppliers deal with multiple steps, you need to be aware of the fact that you will have no direct contact with your customers. However, if there is some kind of dissatisfaction with the product, you will be held responsible.
- Less influence
You need to keep in mind that you will have less or no influence over the quality of the products you sell or their shipping time. This is why you might get some negative reviews and even get banned.
How Much Money You Can Make Dropshipping?
After you have seen all the benefits and disadvantages of the dropshipping model, it’s high time we showed you the amount of money you could make as a dropshipper. The statistics show that dropshipping is profitable if properly conducted, so the beginner can expect to make $1000-$3000 monthly. Of course, multiple factors can influence the sum of money and total profit you will get, so do not get disappointed if you end your first month with zero profit. Once you become an experienced dropshipper, the amount can reach thousands of dollars, even up to $50,000-$100,000 per month.
The sums of money one can make as a dropshipper are extremely variable and influenced by multiple other factors. Money and profit come with experience, so do not expect a lot at the beginning of your dropshipping journey.