Dropshipping does not only provide you with a way to generate revenue but it also does not involve the need to hold inventory, freeing you from a lot of responsibilities. But, is it still a good side hustle option in today’s industry and business environment?
Read on if you want to learn more about this lucrative side hustle and how to get started.
What Is a Dropshipping Side Hustle?
A dropshipping side hustle refers to the practice of using dropshipping as a way to make extra money outside of your regular job or main business.
Dropshipping is a retail fulfillment method where an online store sells products without having to hold stock or inventory.
Instead, the third-party supplier will be the one to ship the products directly to the customer. Dropshippers will then only have to focus on marketing and customer acquisition.
Yes, it is hard to deny that it sounds like a dream business model for those who are just starting out their entrepreneurial journey. It promises a way to make a decent amount of money without investing upfront a great deal of capital on tools and manpower.
But, considering all the advantages it offers, is there any real risk involved in this business model? Read the rest of the article, so you can learn about how profitable dropshipping side hustle may be and how you can optimize the business model to generate more income.
Reasons to Start A Side Hustle
Dropshipping presents many possibilities and, as far as the world of side hustling goes, it’s considered one of the most low-risk ways to create a profitable business. The business model has been around since the 1960s, and it’s a proven and tested revenue model that has withstood economic turmoils.
If you still need convincing to start a dropship business, here are a few more reasons to help you make a better decision.
1. The Never-Dying Market
According to estimates from GrandViewResearch, the global dropshipping market size is expected to go over $557.9B in 2025. This growth is attributed to the increasing accessibility of online shopping, along with the rapid expansion of cross-border commerce. Given these facts, I must say that you are still far from being too late to dive into the world of dropshipping.
2. Good Profitability
There are two main reasons that explain why dropshipping businesses are still profitable. First, warehouse facilities are becoming more widely available, which means they are becoming more affordable. Second, the purchasing power in developing regions is significantly growing in recent years.
If you are confused about the second reason, you should remember that a dropshipping business is online-based, which means you can jump into any market you want without ever touching your feet there. That being said, you can still make a profit from a market as long as you know what kind of products sell there.
3. Low Start-Up Costs
As long as you have an internet connection, you can basically start a dropshipping side hustle in your account! You can even run your dropshipping business from a free social media account like Instagram or Facebook. Obviously, it is wise if you put a few dollars in advance to develop an e-commerce website.
Having an e-commerce website can boost your customers’ confidence level in your dropshipping business, helping you to earn their trust and make more money in the long run. Don’t worry, there is no need to spend several thousand dollars every month because website hosting and extension subscriptions usually only cost a few hundred dollars a year.
4. Zero Employee Needed
Another reason a dropshipping business is still a preferred choice is that it can run with zero labor costs. You don’t have to pay anyone to make the products, market them, or drive the trucks.
As you may have known, labor costs play a crucial role in a company’s financial condition and they require serious business skills to manage. So, by choosing the dropshipping business model, you will have one less thing to bother your mind.
Even if you have come to a point where you need someone to help you handle the orders and respond to customers, employing just one or two people should be enough. You even have the chance to outsource them from other businesses.
5. An Effective Way to Hone Entrepreneurial Skills
You will figure out that when you start a dropshipping side hustle, you will immediately unleash the many entrepreneurial skills you have been hiding for so long. Given this fact, you should not regret things if your first try at running a dropshipping business does not end well.
Making a profitable dropshipping business does not only require great marketing skills but also everything else including product sourcing, quality control, and customer service skills. It is also useful if you have other practical skills such as web design and bookkeeping.
Each of the skills mentioned above is very valuable on its own. Who knows that your amateur attempt at running a dropshipping business might lead you to a new business opportunity that can be beneficial for you in the future.
Can Dropshipping Be A Side Hustle?
When I get this kind of question, my answer will always be: YES! Once you have learned the ins and outs of owning and managing a dropshipping business, it should not be impossible for you to make it a profitable side hustle. There is even a probability that you will be shocked at how much money you can make from it.
One great explanation for this is how scalable the business model is. When you compare it to a traditional brick-and-mortar shop, you will not be weighed down by all the costs related to stocking the inventory, paying the employees, and running the place itself. On top of that, you can run several businesses with only a single device, which makes the business even more scalable.
Overall, it should not be hard for you to make a decent amount of money with a dropshipping business. As long as you know what the market needs and you can ensure that your suppliers have the products in stock, your dropshipping businesses will not take too much time to take off!
How to Start Dropshipping as A Side Hustle?
While it is true that a dropshipping side hustle business is relatively promising, running one is not always as easy as it seems. If you are just starting out, follow the tips below, so you can learn some of the most important factors in developing a sustainable dropshipping business.
1. Find the Right Market
The dropshipping scene is tough competition, which is why you need to be smart about figuring out what kind of market you want to compete in. This one is the fundamental step to your success because it will dictate your entire marketing goals and strategies.
There are a lot of resources to help point out the right niche for your dropshipping business. Its size, growth potential, and level of competition are all crucial factors in deciding the ideal kind of market. You can also choose a niche you are excited about because you can position yourself as an expert in it, and this will help you stand out from the competition.
2. Be Serious about On-Time Delivery and Product Quality
On-time delivery and consistent product quality are two crucial things that keep your customers coming in and excellent communication and negotiation skills with suppliers are needed to ensure them. If you are not serious about these two, then you should not hope for a sustainable dropshipping business.
3. Develop Your Customer Service Skills
If you want to make sure that your customers are satisfied with your service, you should be able to do these three things: be responsive, be polite, and be professional. Even if a customer is being uneasy in front of you, it is important to keep your language in check so that they don’t leave a bad review on your e-commerce store.
Conclusion
In today’s eсommerce landscape, dropshipping is a highly favored business model and it has captured the attention of a diverse range of entrepreneurs. If you are also interested in making dropshipping a side hustle and want to simplify the processes, you should check out Globallyfulfill.
Globallyfulfill is a one-stop destination because its services cover everything in the order fulfillment scope.
With the help of Globallyfulfill, even the most inexperienced sellers should not worry too much about how they will fulfill all of their orders. The company will ease the stress and challenges of being a dropshipper by helping with product sourcing, quality inspection, warehouse storage, and product packaging.
Simply go to the company’s website and you’ll see Globallyfulfill offers a host of benefits that cater to both the needs of newcomers and experienced sellers. This means you can sit back on your comfy office chair and simply monitor the whole process.
