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Is Dropshipping the Best Option for a Stay-at-Home Mom?

March 3, 2010

If you are a stay-at-home mom thinking of starting an online business, you may have wondered if dropshipping is a good option for you.

Dropshipping allows you to sell products online without carrying an inventory.  You set up an account with a dropshipper, post the products online, and when a customer purchases from you, pass the order along to the dropshipper.  The dropshipper processes the order and ships the item directly to your customer.

How does dropshipping help stay-at-home moms?

1.You won’t need much space

When operating out of your home, space is often a concern.  If you purchase your products in bulk, you’ll have to store the products and packing materials in your basement, garage, spare room, or storage facility. Dropshipping allows you to sell products without ever actually handling them.

2.You won’t have to leave your home

Dropshipping allows you to sell products online without packaging them up and driving to the post office.

Granted, many postal services like UPS offer pick-up, so depending on your shipping method this might not be a problem either way, but with dropshipping you are guaranteed not to have to leave your couch (whether your kids will allow you that same luxury is debatable).

3.You won’t need much capital

Setting up an online business has costs, including your Seller’s Permit and Tax ID Number, access to supplier databases, website design and hosting, and Pay-Per-Click advertising to drive business to your site.  However, when using a dropshipper you do not have to make a large initial order as you do with most wholesalers.

This means you do not need an additional $100-3000 in capital to set up your product line.  Instead, you pay nothing for products until you make a sale.  It is usually free to set up an account with a dropshipper, and the price of your product and dropship fees will come out of the money you make on the sale.

4.You’ll have more spare time

It takes time to print shipping labels, wrap products in bubble tape, stick them in boxes, tape and address those boxes, and have them shipped out. Dropshipping saves you the hassle of processing your own orders.

Negatives of Dropshipping for the SAHM

Most of the negatives of dropshipping for a stay-at-home mom are the same negatives of operating any online business:

1. Running a successful online business takes a lot of time and effort.

If you’re planning to do it in one or two spare hours a day, you’ll probably have a hard time getting your business off the ground. Especially the initial set up and planning time.

2. There can be a lot of expenses associated with starting a business.

Your online business is an investment which might take a while to start paying off, so if you’re desperately trying to make the rent this month, setting up a business may not your best bet.

Dropshipper vs. Wholesale Supplier

1. Less profit margin using a dropshipper vs. a wholesaler

Purchasing wholesale is not invariably cheaper than purchasing from a dropshipper, but it generally provides about 10-15% greater profit.

2. Less control over product supply and returns.

Your dropshipper can run out of or cancel products at any time with very little notice.

3. Not all products are available through dropshippers.

Dropshipping is still a fairly new supply-chain management system, and it is not convenient for manufacturers or distributors of all types of products.  However, more and more businesses are joining the dropshipping ranks every day.

Which option should you choose?

Dropshipping is a great option for stay-at-home moms who want to run an online business with the least amount of risk and hassle. It still requires an investment of time and money and some strong planning and execution just like any business.

I often recommend that people start their online business using a dropshipper.  That way you can experiment with a few different products and venues without the risk of carrying an inventory.  Once you have a product line that you know works, you can purchase wholesale to get a better deal.

Leah is a freelance blog writer and article writer, preparing to become a SAHM. She blogs for http://www.wholesalematch.com a company in Utah. Leah and her husband Ryan were married in December 2008, and they currently live in Provo, UT.

Written by Crystal · Filed Under Startup & Grow 

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