To provide you with an idea on what online ventures you can undertake, I will discuss them one by one. So, for today I will tackle Dropshipping.

You have probably heard or read about it, but the whole concept of it may not be that clear to you. I have worked for Shopster.com which is an e Commerce Solution provider that engages in online dropshipping. The company per se is not the one doing the dropshipping, but have a network of suppliers that do the dropshipping for them. To understand the concept of dropshipping we need to know what it is.

Dropshipping is a product supply management. There are basically three participants involved--the dropshipper, the seller, and the buyer, however, in the case of Shopster.com—its dropshipper, Shopster, seller, and then the buyer. What are the roles of each of these participants in this product supply management?

Dropshipper (manufactures (but not always), supplies, packed, shipped, takes care of the returns of products ordered)-->seller (does the selling, displaying, and placing of orders through his/her Online Store or website)-->buyer pays for the products through the seller website

With an e commerce solution site like Shopster, the system is like this:

Network of dropshippers (these are paid members that provide the products for the sellers at Shopster’s network of sellers)-->Shopster.com (provides e commerce solution by means of pre-made online store templates and product distribution tools)-->sellers(paid members)-->buyers

If you are thinking of selling online there are benefits to dropshipping such as:

1. You will not worry about inventory since the products are not physically with you.

2. You will not trouble yourself with packing or shipping.

3. There is no warehousing cost that you have to deal with.

4. Returns are also not part of your concern.

If there are benefits there are also disadvantages:

1. You will have to spend much in upgrading your online store. You have to if you want to be competitive online.

2. If the online store template that you have purchase is not user-friendly, it’s going to be a real source of headache especially if you have no knowledge on using html, CSS, and other similar codes.

3. You have no control over the stock of your product. You may not know it, but you might be displaying a product that is already out of stock. Make sure that you regularly communicate with your supplier.

4. The packaging may not level up to your standards and affect your integrity as a seller online.

5. The product may not be delivered on time.

6. Returns may take too long.

7. Suppliers may become unresponsive which is a sign that they are not reliable or trustworthy.

8. Products are substandard.

I hope you learned something about dropshipping and remember if you want to engage in this type of business make sure that you research thoroughly especially when choosing your dropshipping supplier. Your success relies significantly on it.