Drop shipping is an increasingly popular business model due to its low startup costs, zero overhead, and straightforward business model. It is possible to start a drop shipping business for as little as $100, making it a great option for those looking to bootstrap their venture.

Low Startup Costs

Drop shipping requires very little capital to get started. All that is required is a computer, internet access, and a bit of money to invest in marketing, advertising, and business registration.

Zero Overhead

With drop shipping, there is no need to invest in inventory or warehousing, as the seller does not keep any products in stock. All orders are sent directly from the supplier to the customer, eliminating the need to manage stock.

Simple Business Model

Drop shipping is relatively easy to understand. The seller acts as the middleman between the supplier and the customer. They take orders from the customer, and then place the order with the supplier. The supplier then ships the product directly to the customer.

Low Risk

Drop shipping businesses have low risk because there is no need to invest in inventory or warehouse space. The seller only pays for the products when they have already been sold. Therefore, there is no risk of having unsold inventory.

Low Barrier to Entry

Drop shipping businesses have a low barrier to entry, as the startup costs are relatively low. It is also relatively easy to learn the basics of drop shipping, making it a great option for those looking to start their own business.

Conclusion

Drop shipping is a great option for those looking to start their own business. It has low startup costs, zero overhead, and a simple business model. It also has a low risk and low barrier to entry, making it a great option for those looking to bootstrap their venture.