Alright well I did little research with what I could find. I am new, this would be my first business, I have had a good bit of websites that made me some money, but I want to move further and learn more about other things, my business will be an electronic store. kind of like best buy, but not as big. and I heard drop shipping is the best way to go? is there any other opinions out there on a good way to get started? and if there are any guides on how to get one started, like what to look for, any pointers, any thing I could know before getting started. Thanks.
I'll start by saying that dropshipping is definately not the way you want to run your business. Perhaps if your start-up capital is very minimal, then you may want to engage in dropshipping, otherwise I recommend you to stear clear of it. It's a disaster waiting to happen. Why? The following will explain: Minimal Control You have no way of knowing what the dropshipper has in stock, until it's too late. You cannot select what products you sell, as the dropshipper makes all the decisions. High Prices As majority of the manufacturers do not dropship, you will be dealing with a reseller. As you're including the middleman, you're profits are going to be low, and your prices are going to be high. Do you honestly think a customer is going to want to purchase something when the product has been marked up by the manufacturer, then sold to the dropshipping who ups the price, and then sold to you who is probably going to also mark up the product. It's no way to make money. Unreliable What happens if you sell a product, receive the money from the buyer, pay your supplier and he doesn't ship the item? You're going to be stuck paying the buyer out of your own product. The supplier makes money, the buyer is even and you lose money out of your pocket. Not a very reliable way to run a business. Instead of dropshipping, purchase your products in bulk. By doing this, you lower your overheads, increase profits, and you're not relying on a 3rd party to run your business.
No,don't go for dropshipping coz there are many downside of it for example,you cannot see the product quality. If customer received defected product,then it will harm your company reputation. I advised you to directly deal with manufacture and you can get more cheaper price if you direct deal with them
Thanks for your opinions on drop shipping, I wont be doing that. Does anyone have any good tips or opinions on where to start from?
Unless your importing stuff from China there is no way you can compete with bestbuy. Alibaba.com is a good site to start with
Im not trying to compete. I am just going to start out small, and eventually have a store like best buy. not as big. but the same products.
Dropshipping can actually be good in a way though. You don't have to have the space to stock your own items, meaning less start up capital. The only initial investment is in the website and buying the products from the dropshipper. In my opinion I would actually just try and find a good drop shipper and go from there.