The eCommerce market is open to all who have an idea that can be taken seriously and marketed well enough to attract the attention of wider consumers. Dropshipping can offer a more diverse business environment. Dropshipping can be a way to open doors for entrepreneurs who don’t have enough capital, but want to show their knowledge and make a mark in the marketplace. College students are one of the categories we will be focusing on in this article.
Dropshipping can be a lucrative business model for students. It will bring a positive change to students’ minds and open doors to young entrepreneurs. What is dropshipping, and how can students profit from it?
Dropshipping: A definition of dropshipping
The dropshipping model allows a business to sell goods but not own them. The dropshipping supplier is a wholesaler, manufacturer or retailer who purchases an item from the online store. After the order has been placed, the dropshipper then ships the product to the customer. This model allows the dropshipper to only purchase the products from third parties and not receive physical possession.
If you run a dropshipping company, the inventory displayed on your web page is actually inventory owned by the dropshipping provider. You simply send the order to your supplier, who will then ship the product to your customer. This service can be performed on a monthly basis or annually for an additional fee.
Another important point is that payment is made only after the customer has placed an order. This is why dropshipping might be a good fit for young entrepreneurs with the right knowledge, but not the capital. Dropshipping allows you to focus on what is important, enriching your business instead of worrying about the shipping process. This can be quite expensive and complicated.
Dropshipping Business Model: Benefits
Start with little capital
If you’re a student who is interested in starting a dropshipping company, the most important thing you should know is that you don’t need to have a lot of capital. The steps required to set up an online store are relatively simple and don’t require much investment. Dropshippers would need to start a website using one of the many eCommerce platforms like Shopify or Shift4Shop. Although there are some costs associated with opening a business, it is not impossible to get started.
Dropshipping suppliers cover storage and shipping
Dropshipping is also a great option for college students because of the ease and speed of shipping and storage. Dropshipping allows students to manage a business without having to worry about shipping and storage. The third-party companies that offer their logistical networks and capacities are responsible for this responsibility. Although this service will be charged and you will have to pay a fee for it, these costs are clearly less than if you were to run the entire operation on your own. You can now focus on the advertising and attracting potential clients.
After you have made a sale, the third-party buyer will purchase the item.
Only after a customer has purchased something from your online store, the dropshipping supplier, wholesaler, or manufacturer receives the retail price. This is a great option for students with limited funds or who are not able to create an inventory.
Access to many dropshipping suppliers is easy
Dropshipping is a business that allows customers to ship and store products from thousands of suppliers. Finding the right supplier is the most difficult part of running an online store. Your business can succeed in many areas, including Fashion and Apparel and Electronic products. The Fashion industry is a promising market. Statista predicts that the fashion industry’s revenues will reach US$759 466m by 2021. Even more fascinating is the fact that online sales will account for 24% of total market revenue by 2023.
It seems like the perfect time to think about establishing a fashion online store. BrandsGateway is a great place to start a boutique that sells luxury apparel. Dropshipping suppliers offer branded products from famous fashion brands such as Dolce & Gabbana and Jimmy Choo, Valentino and Prada. This will surely catch the attention of many fashionistas and influencers across the globe.
It’s never been easier to run a business remotely
Dropshipping is a business model that does not require storage or shipping. The only thing left is to assemble the store, which can be done anywhere on the planet using a computer. All you need to start your business is a computer, a smartphone and an internet connection. You can run your business in the dorm, or while you are on a sandy, exotic beach.
Dropshipping: The flaws
Dropshipping is a viable business model that offers many benefits that other models do not have, but there are also some drawbacks.
You can expect certain problems during shipping
While “passing the baton” for shipping and storage can be a huge relief and can save you a lot, sometimes it can cause problems. Dropshipping companies may offer different products and work with multiple suppliers. These arrangements can lead to miscommunications between the buyers and sellers, which can create hustles. This scenario can be avoided if your company is focused on a single product segment. If you only choose one reliable supplier who will handle the shipping and storage, you may be eligible for bonus points.
A well-organized customer service team is essential
Dropshipping requires a reliable customer service. Because shipping and storage will be more expensive, it is essential to carefully craft customer support. Your customer will also receive the item bearing your name once the dropshipping supplier has shipped the product. Any problems that may arise will be addressed and sent to you. These cases will be handled with great customer service.
Depending on the niche, profit margins may be very low.
Dropshipping is a very competitive market. This means that your profit margins will be reduced and you might not make as much money in the initial stages. This can be avoided by choosing a niche store and setting it up that is different from the rest.
Dropshipping is a great venture for students and young people. We need to be aware of something else, despite the fact that there are many market requirements for starting a business. Who will lead this company to success? Or, to be more precise, what are the qualities that students must possess to become entrepreneurs and run successful ventures?
What does it mean to be an entrepreneur?
You might think that the term entrepreneur is only used to describe a specific group of people who follow a strict path that involves grant applications, sponsorships, thorough business meetings, and sponsoring. However, this is a common misconception. The term entrepreneur cannot be used only for the previously mentioned profiles.
To put it another way, entrepreneurs are people who are able to make money on their own and not through the help of any company or business. If you’ve ever made money using your intellect and personal skills, you are an entrepreneur. You have the entrepreneurial spirit as a student to start a dropshipping business that is a great match for your business needs.
Let’s now look at some statistics to get a better understanding of the situation.
Dropshipping businesses can be launched at universities, which are safe places for students.
Dropshipping could be the best option for students who want to explore e-markets. A Santander University report shows that college students have a high entrepreneurial spirit. More than 450,000 college students are starting or are already setting up businesses while they are in college. This is approximately 26% of all university students. With 60%, the most common reason for any type of business to be launched is financial motivation. The financial motivation with 59% ranks second is the desire to have a hobby or pursue a personal interest. Additionally, 32% and 23% of the respective goals are to gain work experience or pay off student loans.
Famous college graduates who started their own companies
Bill Gates and Paul Allen
Microsoft’s story is a great example of students who want to start a business while still in high school or college. Paul Allen and Bill Gates did exactly that. These two geniuses created their ideas in high school. They had their ups and downs, but they managed to maintain the market pressure. In 1981, they were successful and, with the support of IBM, licensed the MS-DOS product.
Mark Zuckerberg, the founder of Facebook, is another example of a business that was founded in college. Zuckerberg started the platform as an undergraduate at Harvard with the goal of connecting students online. This simple idea became the world’s largest social media platform with more than 285 billion users.
In Houston University, the trio of Matt Mullenweg and Mike Little instigated the idea for the most popular CMS (content management platform) WordPress. WordPress, a platform that powers around 35% of the top 1,000,000 web pages worldwide, is still the leader in web development. Around 455 million web pages use WordPress as their CMS. It is open-source and can be customized to your requirements. WordPress is a great tool for building your dropshipping website. It gives you the flexibility to make your webshop unique.
Your student business can be turned into a job
According to Santander University’s research, 33% of college students polled said they plan on making their business ventures a long-term commitment once they graduate. 52% of respondents said they would continue with their business as a hobby, or as a second job. 9% stated that they would still run their business if they had additional support. Only 4% of students surveyed said they would close down their college-launched business.
College knowledge can be used by young entrepreneurs to help them succeed in their business ventures
Knowledge gained at university is essential for your brain. This knowledge can help you to start your own business. To become fully-fledged entrepreneurs, students need to be exposed to the challenges of the business world. Young entrepreneurs must learn to manage the challenges that will be part of their business venture’s lifecycle. Dropshipping for students may be the best way to get started in business.
Guidance is a way to help you along the way
According to Investopedia, 45% of newly established businesses won’t make it beyond five years. A Federation of Small Businesses research shows that 70% of businesses who are guided by mentors would remain on the market for at most 5 years. Many well-known entrepreneurs and business leaders would not have succeeded without someone to guide them.
All things considered
Dropshipping can be a great strategy for young bright minds who are looking for a challenge in eCommerce. Starting your own business can be a great way to express your creativity and learn new skills. Dropshipping can be a great business opportunity. Now all that is needed is to set up your store and start reaping the rewards of your profitable venture in terms of profits and experience. This guide is meant to be a beacon of light for eCommerce entrepreneurs as they navigate the ever-changing sea of eCommerce.