Introduction

A few days ago we published an article about businesses you can start with no money. Where dropshipping was our first choice because of its low capital (or no capital) to kick off the business. 

Today we are going to show 5 reasons you should start dropshipping business in 2022.

So let’s start!

#01. E-commerce Is Growing After Covid 19

In the wake of the COVID-19 pandemic, online shopping has seen a significant uptick as people seek to avoid crowded stores and social interactions. A  Recent Article From Statista shows that retail e-commerce sales worldwide were $3,351 billion US in 2018 and are projected to grow to $4,872 billion by 2023. This represents a Compound Annual Growth Rate (CAGR) of 10.1%.

The growth of online shopping is not limited to developed countries; in fact, developing countries are expected to see the highest CAGR of 17.9%. China is the world’s largest e-commerce market, with retail e-commerce sales totaling $2,323 billion in 2018. The United States is second, with retail e-commerce sales of $1,521 billion.

#02. Shipping Time Reduces After Covid

In the era of online shopping, time is of the essence. The faster an order can be processed and shipped, the better. Unfortunately, dropshipping does not always work like this. Because suppliers are often located in other countries, it can take days or even weeks for an order to arrive. This is a major problem for online retailers, as customers are quick to abandon a website that takes too long to deliver their purchase.

This problem was exacerbated by the spread of Covid-19. Many suppliers were forced to shut down their factories due to the pandemic, resulting in longer shipping times. As a result, many online retailers saw their sales plummet as customers went to competitors who could deliver their orders more quickly.

Fortunately, things seem to be improving now that Covid-19 has been largely contained.

#03. Low Capital Needs To Get Started

Dropshipping is a business model that doesn’t require a large up-front investment. In fact, you can start a dropshipping business with very little money. This makes it a great option for entrepreneurs who are just starting out.

There are several reasons why dropshipping is a low-capital business. First, you don’t have to invest in inventory. When you’re dropshipping, your supplier ships the products directly to your customers. This eliminates the need for you to carry any inventory.

Second, you don’t need a lot of money to start marketing your business. You can create a basic website and start promoting your business for free using social media platforms like Facebook and Instagram.

Third, the overhead costs associated with running a dropshipping business are minimal.

You can read This Article to know more about the starting cost of dropshipping business.

#04. Your Bedroom Your Office

Dropshipping is a business model that does not require a physical office. This is great news for business owners who do not have the space for a huge office, or for those who are just starting out and do not want to commit to a large overhead expense. 

Another benefit of dropshipping is that it does not require a lot of inventory. You can start your business with just a few items and then grow your inventory as you generate more sales. This is another advantage over other business models, such as brick and mortar stores, which require a large up-front investment in inventory. 

Dropshipping also allows you to test new products quickly. If you are unsure about whether a new product will be successful, you can easily test it out by dropshipping it.

#05. Plenty Of Products To Test

Dropshipping has become a popular business model because it gives entrepreneurs the opportunity to test thousands of products without having to invest in inventory. AliExpress, one of the largest online marketplaces in the world, has millions of products that can be dropshipped.

Most dropshippers start by finding a product they are interested in and then searching AliExpress for a supplier. AliExpress is a great source of suppliers because there are so many different sellers competing for buyers. This competition drives down prices and increases the likelihood of finding quality suppliers.

Once a supplier is found, the next step is to create an order. It’s important to check the reviews of the supplier before placing an order to make sure that they are reputable. Once an order is placed, it typically takes about two weeks for it to arrive from China.

Conclusion

In conclusion, there are many reasons to start a dropshipping business in 2022. The industry is projected to grow, there are many platforms to use, and it’s a low-risk investment. With these factors in mind, now is the perfect time to start a dropshipping business. So what are you waiting for? Start dropshipping today!