Exploring Side Gigs 101: Is Dropshipping a Good Side Hustle?
Are you considering ways to earn money in your free time? If so, drop shipping can be the answer! This side hustle is a great way to earn money online. You can choose your own hours and conduct business from home, giving you the freedom to choose your own schedule and, most importantly, make ends meet.
Forget stocking stuff or sending things out; dropshipping is about selling without the fuss. It's like turning your hobby into cash without the stress of additional manual labor.
Want to know more? Stick around to learn how this extra income idea works. We'll break it down step by step so that you can turn your spare time into a passive income stream!
What is Dropshipping?
Dropshipping, as explained by Forbes, is a business model used by e-commerce retailers that do not stock inventory. It's where a retailer gets orders for products listed on the shop front and forwards them to the supplier.
This online business model represents a win-win situation for retailers and suppliers since they can concentrate on their expertise. As a retailer, you can build customer relationships while your supplier maintains inventory and ships products.
Can I do dropshipping on the side as a side hustle?
Totally! Because dropshipping is so flexible, it's perfect for people who already have a traditional 9-to-5 job or want to step away from it.
It presents a low entry barrier and requires minimal investment. There's no need to buy a large inventory or rent a storefront. With e-commerce platforms, you can showcase your products while managing your business from home.
However, if you want to succeed in dropshipping, expect it to take time. It takes dedication, consistency, and a willingness to adapt and learn.
It's worth the journey, though. It's possible to build a substantial and sustainable income stream from dropshipping, giving you the freedom and flexibility to achieve your goals.
The Pros of Dropshipping
Running a dropshipping business on the side is a door that allows you to unlock a world of potential financial growth.
Some perks included skipping the high costs of renting space, keeping stock, investing money, or hiring staff. All you need is an online location where shoppers can explore and get their goodies. And with many platforms like Amazon, Shopify, or Squarespace, getting started is a lot more manageable.
Still, other advantages are worth mentioning, including:
Anyone can do it
Starting out does not necessitate a major or another degree. You can find many free online tutorials and a large community of drop-shippers who share their best practices. You can quickly start by self-studying and implementing strategies shared by others in your industry.
The popularity of online shopping has been steadily rising, creating a flourishing marketplace for dropshipping products. According to Tidio, the value of online shopping is predicted to exceed $7 trillion by 2024.
This remarkable surge can be attributed to several factors. Online purchases can be made with just a smartphone, and social media platforms like Facebook, Instagram, and TikTok are essential to rapidly spreading the news about new products.
This allows you to make the most of the escalating demand and manage your dropshipping store efficiently.
One of the most significant advantages of managing a dropshipping store as a side hustle is the remarkable diversity of products you can offer.
Unlike traditional brick-and-mortar stores, you are not restricted to a specific niche. You might run a dropshipping store selling trendy clothing lines, custom-made phone covers, handmade goods, and eye-catching t-shirts.
Your ability to respond quickly to changing market preferences makes all the difference. If demand for custom designs on t-shirts is soaring, you can quickly partner with a print-on-demand supplier to meet the trend. As a result of this flexibility, you adapt to shifting market dynamics smoothly.
Dropshipping's beauty lies in its flexibility. Everything is online, so you can run your show from anywhere. No matter where you are, your store is open.
There is no store rental fee or physical location limit. The only thing you need is a laptop and a good internet connection.
The Cons of Dropshipping
Any endeavor demands careful consideration, and starting a side business with dropshipping is no exception. Therefore, before diving in, navigating the potential pitfalls that accompany the excitement is essential.
Understanding the drawbacks can help you make informed decisions and develop strategies to mitigate these challenges, ensuring that your entrepreneurial adventure remains rewarding and thriving and that you successfully build your dream business model.
Here's what you need to consider before you start selling online:
Thin profit margins
Dropshipping has low upfront costs, but fierce competition leads to slim profit margins. We're not saying dropshipping is too saturated to be profitable. Just be aware that some markets are more competitive than others if you start this business.
According to Shopify, Clothing is the most competitive market, followed by Home & Garden and Jewelry & Watches.
Fortunately, being creative about advertising your product can mitigate this problem. Choosing the right niche is also crucial to having a good chance of success.
Lack of control over inventory
The most challenging part of starting a business is finding and securing a good supplier. By entrusting your products to suppliers, you lose direct control over quality, availability, and shipping times. This could result in dissatisfied customers, which can drastically impact your business!
You can solve this problem by choosing reputable and highly rated suppliers for your dropshipping side hustle. Nonetheless, you cannot always count on them to meet your expectations, so always have a plan B.
Customer service challenges
When customers are satisfied with your products, everything is dandy. Returns or exchanges, however, are challenging to coordinate with your supplier, making things difficult.
You are the bridge between the customer and the retailer, meaning that you must ensure accurate information reaches them and facilitate hassle-free returns and exchanges. Complaints about shipping delays or product quality require a diplomatic approach. Your ability to negotiate solutions must demonstrate your commitment to customer satisfaction.
How Much Do Dropshippers Make?
According to ZipRecruiter, the average hourly pay for a drop shipper in the United States is around $19. Still, they have also seen hourly wages as high as $24.76 and as low as $10.10.
What does this mean to you? That your earnings can fluctuate a lot. However, you can still make more money by venturing into this online retail business.
If we do the math, earning an estimated $19 per hour with your customer orders in a year could make around $166,440, which is an outstanding yearly salary.
Other Side Hustle Ideas to Maximize Your Income
Diversification is key when it comes to side gigs. Let's check out these additional side hustles that offer flexibility and good earnings potential:
Install browser extensions for extra cash:
By installing browser extensions that collect and analyze your online behavior, you can earn rewards while helping companies improve their products and services.
SavvyConnect is a good example. While protecting your privacy and data security, it collects valuable data from your online activities. Similarly, the National Internet Observatory (NIO) is an excellent platform for passively selling data. While securing your information, it shares customer insights with companies and provides fair compensation.
Complete paid surveys:
Take advantage of paid online surveys, a flexible and adaptable way to earn extra money. Forthright stands out among the many websites and apps that offer rewards for completing surveys.
Once you complete the sign-up process, Forthright lets you dive into surveys with its user-friendly interface. Take advantage of a truly rewarding opportunity by joining Forthright today. You can get cash rewards and gift cards from top retailers.
Share your insights through market research programs:
Participate in market research studies that gather valuable insights from your online behavior. For instance, the SJ Pulse program collects data from online surveys and mobile phone usage. This program will give you cash rewards and perks from Survey Junkie, a reputable paid survey site.
Money is Calling Your Name!
Curate your own unique product selection while online retailers handle all the inventory and shipping. You get to make the decisions and watch your extra cash flow grow as your entrepreneurial experience progresses.
Ready to start dropshipping? Stay tuned to DataRich for more insights, tips, and guides on making the most of your online ventures.