According to forecasts by Oberlo, the market size of the drop shipping industry is expected to increase at a rate of 24.39%. This estimation is from 2020 to 2026. Due to its several merits, this business model is becoming popular among new entrepreneurs. With changing consumer habits and the rise of eCommerce, dropshipping is emerging as a new business opportunity that requires no inventory or storage. There is also an increase in dropshipping services in India.

It is legitimate to say that along with several benefits and advantages, there are also various challenges faced in the dropshipping business. It is not a smooth path, and there are hurdles that dropshippers used to face frequently. This blog is focused on the numerous dropshipping benefits and challenges faced by dropshippers in business. Along with that, you will also know when to confer a dropshipping consultant.

First, let’s go through the common advantages of dropshipping.

Significant Benefits of Dropshipping

A Dropshipping Business is easy to Begin.

It is easy to start a dropshipping business because you don't need to think about packaging, shipping, or managing a warehouse. There is also no hassle in handling inventory and inward shipments. It is one of those dropshipping benefits that attracts the majority of individuals and small businesses to try their hand at dropshipping.

There is Low Investment and No Inventory

It is simple to launch a dropshipping business with low capital and no inventory investments. You can start sourcing products with very little money. It is one of those benefits of dropshipping due to which there is less risk in this business than traditional commerce and retail.

Wide Range Of Products To Sell

In this business, you have a wide range of products and items to sell. The supplier offers a variety of items to choose from. You always have the option to trade trending and latest products with your customers at various locations.

With these benefits of dropshipping, there are some challenges too. Now, let’s explore the negative aspects of the dropshipping business.

Major Challenges of  Dropshipping

Inaccuracies of the Supplier

This is a prime challenge in the dropshipping business: finding a reliable supplier and working smoothly with them. The unexpected delays and errors produced by deficient suppliers cause hindrances to your dropshipping services and business growth. Moreover, shipment issues, missing items, and shortcomings in packaging can greatly impact your business’s image.

Difficulty in Managing Customer Returns

When you work with multiple suppliers, it gets wrangled to manage customer returns. Complete reliance on third party suppliers causes difficulty in returning procedures that adversely impact your dropshipping services. Moreover, suppliers impose extra shipping charges if the customer’s address is at a different location.

Facing a High Level of Competition

It is likely to face ample competition in the dropshipping business. It has been discovered that your products need to be unique and exclusive. Otherwise, there are numerous people who are selling the same product as yours.

Why choose a dropshipping consultant ?

After knowing about the challenges of dropshipping businesses, it is not wrong to say that you can confer dropshipping consultants to overcome these challenges. A dropshipping consultant will help you out in the initial phases of research to make informed decisions. They assist you in tracing a reliable supplier so that you can work precisely with them. Moreover, they will provide support and assistance in managing your work operations with their services.

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Conclusion

So, these were the major benefits and challenges of the dropshipping business. You can always decide to convene a dropshipping consultant to overcome these frequent challenges. They provide definite dropshipping services in India.