I was searching for different ways to earn money. The fear of always not earning but having to ask for money from parents scare me. I stumbled upon Dropshipping. I found out that it's a very popular method at this age and it's growing though there is competition.

What is Dropshipping?

Dropshipping is a model of online business where the seller does not need to keep stock of the goods he deals in. When a customer places a order, the seller acts as a middleman and the order is forwarded to a wholesaler or retailer or supplier who carries out the delivery of the product.

Some features of Dropshipping

1. Online business

2. No need for stock keeping

3. No physical store

4. Earning through profit margin

Why you need to be cautious?

Though Dropshipping is getting immense interest of many and the model is growing as business, it is not a get-rich-quick scheme. It is a very easy business to start. Therefore there is many competition in this. Also there are possibilities of scam.

Dropshipping is a internet based work from home scheme. Since the seller in Dropshipping sells from a list of suppliers. There is possibility of fake suppliers who may be another middleman, thus decreasing profit margin. Profit margin refers to the difference between the cost price and the sale price. Profit margin is the earnings of the seller. Therefore, fake middleman acting as supplier ruins Dropshipping.

Dropshipping also tends to be risky. With fake suppliers the quality of the products the customers receive may be far lower than it is shown in the advertisement. Sometimes far worse, the customers receive nothing.

Since the seller is acting as upfront, he needs to attend the complaints from customers when they get duplicate products or low quality products or no product at all. The seller if not cautious will be scammed by such fake suppliers.

Comment down if you have done dropshipping or not.