Submitted by mrobison on Mon, 07/09/2012 - 16:10
Dropshipping is often lauded as an easy way to get into the ecommerce business. You set up a store and whenever an order comes in, you simply email the supplier. They package up the item and ship it to your "customer," and you keep the profit. Just sit back and watch the money roll in. You never even have to spend time or money keeping and tracking physical inventory.
This sounds great in theory. But like all formulas that promise to print money, this one is too good to be true. Its not as easy to be successful as many make it out to be. Here are the reasons why.
1. Low Barrier for Entry
It is relatively easy to get into dropshipping. You can get a site up and running that sells all of the latest electronics if you want, or all the latest televisions. It's so easy, in fact, that at least a thousand other people are probably doing exactly what you are doing. Your market is already saturated before you even think of it.
