Dropshipping is a very popular business model because it carries with itself very low risks, let’s see what these risks are about.
1. Not reaching your ROI goals IMMEDIATELY - Dropshipping is synonym of testing and testing is synonym of trying.
Expect to fail some tests before finding that so called “winning product” that will light up your screen with sales notifications multiple times per hour.
2. Delivery delays - no matter the shipping company, when it comes to dropshipping, shipping times can and will vary accordingly to the moment of the year and the related volumes, not mentioning the general conditions of international shipping (i.e. the COVID-19 pandemic due to which the overall number of flights and workers was strongly reduced).
3. Out of stock products - It can happen that your products can be temporarily out of stock. In this case you can either wait for the product to be available once again or avoid any chance of this happening by buying private stocks and handling it thanks to our Virtual Warehouse feature.
Virtual Warehouse is the best solution if your product has already received its market validation and you’re looking to build a brand on it. Through this feature you can buy a small (or bigger) stock of products that we store in our warehouses and handle shipping from there. This way you will have a smaller cost per unit and dramatically reduce processing time as all your products will be ready to ship.