Let’s say you’ve decided you want to start an ecommerce store. What are your next steps? Most entrepreneurs try to come up with a product idea, look for suppliers, pay for the products and get them into your real-world store. Then, once you receive your merchandise, you’ll try hard to make sales.
The problem is you don’t really know what will sell well, or if you will be able to sell the product at all. There’s a lot of risks involved in the traditional business model.
To illustrate:
Alice uses dropshipping, so she doesn’t buy products in advance;
She only manages to sell 10 products and brings in $200 in sales;
Alice orders the products from her suppliers and has them shipped directly to her customers;
She quickly realizes that nobody likes these products and decides to try a different niche or product instead;
Alice is still happy because she just made $100 in profit.
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