Dropshipping – Is it still the best business idea for 2022
admin September 21, 2022

Dropshipping just isn't ready to drop. It's one of the big widespread eCommerce home-based business ideas of modern civilisation and can bring in millions in home-based income for people everywhere.

You can efficiently initiate a dropshipping business with a 10000-pound loan. According to a study by Grand View Research, the

dropshipping market is predicted to reach $557.9 billion by 2025, growing at a CAGR of 28.8%.


The international dropshipping industry is expected to reach $196.78 billion in 2022. It will continue to rise, reaching $476.1 billion by 2026, according to a different Statista report.

However, along with effort, you must possess a strong interest in e-commerce for the business model to be profitable and successful in the long run. 

Due to the UK's high ecommerce spending, populace, and GDP per capita, interest in the country has surged. In this blog, we will attempt to be honest about this business model – what works and what doesn't. 

What exactly is dropshipping?

Let's begin by defining the business by itself. To make it really simple, dropshipping is a business strategy for selling things online. But this does not involve keeping any of the commodities in your house or warehouse. You just have an online store where you sell products.

First, a customer places an order with your store. You then take the same order and send it to your dropship supplier straight. There are considerable apps obtainable that can oblige you to automate this step of order fulfilment.

In the dropshipping business model, the supplier is responsible for all product storage, picking, packing, and delivery. To maintain seamless operations, these vendors must have strong control over the lead time in their supply chain.

A sufficient amount of decoupling inventory or safety stock is involved. Additionally, they must be able to dispatch goods fast and give the consumer tracking information.

Some pros of dropshipping

Avoid bulk buying

You can swiftly test and sell new products without purchasing them in bulk if you don't have an inventory.

When you buy in bulk, you buy many of the same goods at once instead of dropshipping, where you just buy one at a time.

As a result, you will need to find a warehouse or storage space to keep your goods, which has its own advantages. But the point I'm making is that you can end up with many things that you can't sell.

The storage situation can become messy if you're unsure whether you can sell the product or if you're unsure whether your target audience will like the product.

Dropshipping allows you to sell products in your online store without having to buy hundreds or thousands of the same item. They can be bought individually.

You only have to pay for the items when a customer purchases from your online store. Still, it might have a drawback, which we will discover later. 

But the good thing is that you can test the market for the product before placing a sizable bulk order. You won't have to worry about having any unsold inventory in your warehouse or home if the first product isn't selling.

You can just move on to newer products. The important thing to remember here is that you must be aware of when to stop drop shipping.

Comparatively low start-up costs to retail establishments

This one fits nicely with the last one about not needing to buy bulk to start selling items in your online business. This is the key reason why starting a dropshipping business is so inexpensive.

You don't have to buy the inventory! Besides, you can also avoid paying warehouse costs by doing this. 

The conventional eCommerce strategy frequently calls for you to invest some money into your company. Cash is imperative for establishing your inventory and purchasing infrastructure and storage space for that inventory.

Additionally, you'll utilise the funds to establish your company's brand, design a website, and create your operational processes.

Reduced the cost of fulfilment

Fulfilment costs money. Picking and packing, or gathering things for the order and preparing them for transportation, takes time. Boxes and packing supplies are resources that cost money. 

Additionally, shipping goods can be costly, particularly bulky or heavy. Dropshipping frees you from the procedure (and costs) of order fulfilment. This is because your suppliers and distributors handle all of it, like the cost of inventory.

More room for risks

Even though taking measured risks might occasionally pay off, managing your own inventory makes it more difficult to take risks. What happens if your clients aren't interested in your new product offerings in new product categories? 

The money you spent on those products and any expenses related to adding them to your inventory could result in a significant loss for you. With drop shipping, you have more room for non-costly errors. 

Cons of dropshipping

Dropshipping might sound intriguing, but it might not be ideal for every online store and eCommerce venture. It actually has several disadvantages that you should take into account before beginning the business.

Margins are lesser

The benefit of not having to pay upfront for inventory and ongoing costs for replenishment and storage far outweighs the fact that your profits will be substantially smaller. The likelihood of making money off of customer purchases is limited.

When you have your own inventory, you frequently buy your goods wholesale, which means you get a lower price in exchange for purchasing more items. Your cost per item will be lower, as a result, increasing the item's margin and profit.

In contrast, if your company engages in drop shipping, you delegate the delivery of your orders to a supplier or distributor. This supplier or distributor benefits from the substantial profit margins.

Your own margins, which are often just a small portion of what your consumers pay for the goods, will be negotiated with your suppliers and distributors.

Dropshipping Faces Serious Competition

Many companies find dropshipping to be very enticing because it requires very little cost to get started. Because of this, there will likely be considerably more rivalry in this market than with a more traditional, inventory-dependent eCommerce model.

You're Reliant on Other Businesses To Run Yours

When you run a dropshipping business, you effectively depend on other firms and enterprises to enable your operation. 

Even if many of the suppliers and distributors you'd be working with have a track record of dependability, you're still entrusting others with your company's future. This means the growth of your company lies in someone else's hands.

Additionally, your capacity to offer customer care for the goods you sell is constrained if you rely on dropshipping to fulfil orders. You might need to direct clients to your distributor or supplier for assistance with certain problems.

This complicated process of acquiring the assistance they require can be annoying and deter potential purchases in the future.

Building Brand Loyalty Is Difficult

Although hiring distributors and vendors to pick and pack your orders is simple, there are few opportunities to build a brand for your company.

Might credit your clients' goods and services to your suppliers and distributors.

For instance, if a customer likes one of your products, the customer is more likely to focus on the business. The consumer will reach out to the company that created and produced the product. 

Consumers will most likely ignore your firm because you are the dropshipping firm that mostly acts as a middleman between the buyer and maker.


You can start a dropshipping business in the UK with as little as a 5000-pound loan. The model is ideal for someone who wants an online business that gets you 'something in the side'. 

However, once you decide to become a dropshipper, you must also have a great hosting plan.