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Dropshipping With Third-Party Warehousing: The Fastest Growing Side Hustle

Keywords: Working, laptop.

Many people now have a second job or side hustle to help them make the ends meet and add to their disposable income. Dropshipping has become one of the most popular ways to make extra money and is one of the fastest-growing side hustles in the world.

Advances in technology, shipping, and warehousing have combined to make this new money-spinning endeavor possible, but what exactly is dropshipping and how does it work? Let's take a closer look.

How Does Dropshipping Work?

Dropshipping is when the seller of a product, the merchant, does not actually warehouse or distribute a product. Instead, the merchant relies on the manufacturer and third-party logistics services to get their products to customers. 

This advancement in eCommerce means that anyone anywhere can supply products to consumers. You no longer need large warehouses to store inventory and arrange and package deliveries to customers. Dropshipping products allows you to concentrate on the sales and marketing of your business, and on researching new products.

Third-party logistics (3PL) services help make the distribution of products possible for dropshipping stores across America. SCHC is a Texas 3PL provider that has seen rapid growth as more and more people switch to dropshipping for a second income or side hustle. Located near the port of Houston, they can handle goods coming from Asia or elsewhere in the world and distribute them to customers throughout the USA.

Why Is Dropshipping So Popular?

In recent economic times, especially during the global outbreak of COVID-19, many people had to find new ways to generate an income, and drop shipping grew in popularity. The low start-up costs and minimal overheads made it possible for just about anyone to join the eCommerce marketplace.

Modern technology makes dropshipping easy to do. Many dropshipping companies are operated from nothing more than a smartphone. Today’s entrepreneurs can swipe and type their way to financial independence using apps and emails to keep their companies running.

The first few days and weeks of dropshipping can be intense, but once the operation is up and running maintaining the flow of sales and deliveries becomes easier. After some initial hard work, dropshipping can easily be run alongside a full-time job.

What Are The Disadvantages Of Dropshipping?

The biggest disadvantage to dropshipping is that anyone can do it. The competition in online marketplaces and eCommerce sites is strong and early mistakes can be costly.

This, paired with the small profit margins from each sale, can make full-time dropshipping unsustainable. It is suitable as a second income, but people will often struggle to make enough to turn their eCommerce store into their main occupation. 

Customer service can be difficult too. Supplier and distributor problems can quickly become your problem and impact the success and reputation of your business. When things go wrong in dropshipping it can quickly take over your life, and you need to respond to problems fast to keep customers happy.

A well-maintained dropshipping business can be a great way to earn some extra money. It takes a daily commitment to keep the business going and growing, but the potential rewards are worth the effort.

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