“What is the best age to start dropshipping?” or “Can a 16-year-old or 18-year-old start a dropshipping business?” are probably the questions on your mind. All of such questions are interpreted to suggest that young drop-shippers are growing in this business. And nowadays, young people are more active in the e-commerce business. Before knowing at what age you can start dropshipping, first, let us know more about it.
What is Dropshiping?
It is an order fulfillment mechanism that eliminates the need for a company to retain inventory on hand. Instead, the store sells the item and then sends the sales order to a third-party vendor, who subsequently ships the purchase to the buyer.
As a result, if your company uses drop shipping, you will be acting as a storefront where customers can come in and place orders. You charge the customer and the drop shipper charges you once they place an order.
How does dropshipping work?
Dropshipping is a way of supply chain management. A supply chain is a collection of suppliers, materials, manufacturers, and merchants who work together to create a product. They are also engaged in the distribution of a product, from production to client delivery.
It involves the following parties:
The products are made by manufacturers. They do not normally sell to the general public; instead, they sell in huge quantities to wholesalers and retailers.
Wholesalers buy products from manufacturers and resale them at a higher price to retailers. Wholesalers typically carry a wide range of products from a variety of producers.
Retailers mark up things and sell them directly to the public.
This is how it works:
- The customer purchases from you, the retailer.
- The dropshipping partner, either the producer or the wholesaler, is notified, and the product is packaged and shipped to the client.
- You, the retailer, pay the dropshipping partner for the service and in turn, charge the client.
Because there are fewer parties receiving a share, the shorter the supply chain, the higher your earnings will be. You have a short supply chain when you interact directly with the manufacturer.
The Advantages of Starting a Dropshipping Business
Dropshipping is a retail inventory management approach. It can assist your company to reduce risk while also providing other benefits. This type of order fulfillment is popular among e-commerce enterprises and other businesses. It aims to reduce inventory risk and enhance flexibility.
It reduces the costs of establishing and running a company.
It cuts the cost of launching an online business in half because you do not have to invest in inventory upfront. It can be prohibitively expensive for new and small enterprises. As you are not responsible for acquiring inventory or maintaining storage for that product, your overhead is kept to a minimum. It also means you will not be stuck with things that do not sell, which means you will not have to price them down and lose money.
You have the option of changing your location.
Dropship companies are also more agile than companies with more traditional setups. You can pretty much run your business from any place you can get an internet connection because you do not have real inventory.
You can provide a greater range of products to your customers.
You can keep on top of trends and swiftly add items to your site because you do not have to invest in establishing your own inventory. You may also change up your products rapidly without having to order new things or clear up backstock.
You do not need to keep track of inventory.
You will not have to handle inventory if you do not have any. Inventory management can be difficult and time-consuming. You and your staff will not have to keep track of stock, reorder it, or process it. You will have more time to focus on other elements of your business that will help it expand.
Difficulties in Dropship Business
It has advantages for business owners. But it also has disadvantages that may conflict with your overall business strategy. Here are a few reasons why some businesses choose not to use dropshipping:
Complications in shipping
Your shipping expenses become rather difficult if you operate with a number of suppliers. Let us imagine a customer places an order for two things, each from a separate supplier and with varying shipping rates. You will need to figure out how to charge the buyer for shipping without making them feel overpriced.
It is critical to establish strong relationships with your suppliers that are built on trust and mutual respect. Suppliers are the backbone of your company, so choose carefully who you work with. You should never take their loyalty for granted by paying late or being hard to work with. To enhance your drop-shipping efficiency, learn how to properly manage your suppliers. You must develop good partnerships with them.
It is simple to verify stock levels when you own inventory. It is more difficult to ensure that the things you need are easily accessible when you receive them from numerous suppliers.
After knowing more about dropshipping, its advantages, and its disadvantages, let us come to the real question.
How old do you have to be to dropship?
If you want to establish a drop shipping business, there is no minimum age requirement.
If you are 14 to 16 years old, you can start to dropship. There are numerous Dropshippers out there who are the same age as you and are succeeding in this industry. But you should get your parents’ permission because you will need a credit card to buy inventory and subscribe to an e-commerce site.
Dropshipping may be a very effective approach when executed correctly. It is a low-risk business model that lets you sell things to customers. You do not have to pay the high operating costs associated with a wholesaler. Because of the lower costs, dropshipping allows you to become successful much faster than other business methods.
Planning On Starting Dropshipping Business?
If you are planning on starting a dropshipping business or trying to scale your current dropshipping/ecommerce business, I highly recommend you take a proper course. There are many people out there who end up losing a lot of money because they try to do things themselves or just rely on youtube’s free information.
Now, that being said everyone seems to claim to be a guru nowadays so, it is harder to find quality courses to try. I personally recommend you try out eCom Elites, I have reviewed over 50 courses on my blog here and not one comes close to eCom Elites. The part which is insane is that it’s not your average guru course which is priced thousands of dollars with very little content.
It is by far one of the most affordable courses with the most amount of information you can buy on the market. You can read my review on eCom Elites here.