Martin Zwilling made a phenomenal statement at the close of 2013. He said, “I believe the days of the ‘job work’ mentality are thankfully waning, with more people looking to get satisfaction by making the world a better place, rather than just brain-numbing work to fund enjoyment elsewhere.”
I too, have seen a large influx of entrepreneurs since the economic recession of 2007. Rather than discussing the reasons for such, I’d like to explore, what I call, the perfect business to start in 2014. What is this business I speak of?
Wikipedia defines drop shipping as, “Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer.”
What I’d like to do now is share the main reasons for this being the perfect business model.
Reason #1 – Inventory
The Wikipedia quote above mentioned that this model doesn’t require an inventory. I know firsthand the challenges with inventory based business models.
Reason #2 – Low Barrier To Entry
Barrier to entry is an economics term for how much it costs to get into a business. It’s low because there aren’t very many costs to get started. Some costs you might expect include:
- Domain name
- An SSL
- A platform to build the website with, like SimpleWebStores.com or BigCommerce.com
- A business license and a state sales tax ID #
- Marketing costs
- Web design work (unless you have a good eye for design)
- Drop shipping fees
- Payment processing fees
Once you’ve got these things in place, you’re off to the races. I’d now like to showcase some entrepreneurs who have experienced success with it.
#1 - Magda Mallory
Magda used to be a reseller for a big health supplement company. When that program was ended, she decided to go into business for herself. She started http://trustsupplements.com/ which offers a wide range of natural health supplements. Some of these include: vitamins, green tea products, sports supplements, and fat burning supplements.
#2 - Joe Hupp
Joe Hupp runs a Renaissance costume website called http://www.renaissancemodel.com/. This site offers clothes and accessories that span styles from “Medieval Maiden” to “Dashing Pirate.” He targets an audience that is looking for costumes for Renaissance fairs and other similar events.
The site is intuitively organized into Men’s Costumes, Women’s Costumes, Children’s Costumes, and Accessories, and it is then broken down into smaller categories so that site visitors can find exactly what they need. There is also a search bar at the top of the site that helps with this as well. RenaissanceModel.com features a prominent newsletter sign-up form that promises exclusive discounts and new product updates for subscribers.
#3 - Adam and Liz Morgan
They saw firsthand how expensive it can be to accumulate storage of food. As a result, they created http://householdfoodstorage.com which aims to make food storage affordable. They’ve got a great selection of freeze dried and dehydrated fruits, vegetables, dairy, grains, and legumes.
#4 - Robert Anderson
Robert has his head on tight when it comes to business. He’s teachable and has an unmatched work ethic. It’s no surprise that he’s been successful in selling personal protection items, such as stun guns, sprays, personal alarms, and more. His site is http://www.alldefenseproducts.com.
Consider getting into the drop shipping/e-commerce business. If Adam, Robert, Magda, and Joe can be successful with it, then there’s no reason you can’t be as well.