Pros & Cons of Dropshipping

Dropshipping is a popular business model nowadays. The businessman will not buy bulk for inventory and ship the goods when the client needs them. The new trend is the dropshipping supplier will only buy one-piece products(maybe more) from his supplier with a wholesale price, then the drop shipping supplier will ship the goods to his customers. and this customer will pay the goods at retailer price. This is the profit margin of dropshipping business.

So what about the advantage and disadvantages of drop shipping?

  • Pros
    • Minimal startup capital
    • Easy to get started your own business
    • No warehouse cost
    • Lower logistics costs
    • Own labels for customize
    • Easier to manage and scale business
    • Flexibility working time and location
  • Cons
    • The profit margin will be lower than wholesale business models
    • Not easy to build a brand when you are a newbie for business
    • A small capital to start dropshipping means you will meet a lot of competitors
    • Hard quality control, especially you did not do any sample tests. Of course, considering the long-term cooperation in the future, most drop shipping suppliers are relatively reliable.

In general, the advantage outweighs the disadvantages. What do you think?

If you have any interest in dropshipping, welcome to visit our website: for lighting products selection.


LEDSIX was built with a strong R&D team including structural technician & electronic technician & software electronic which can satisfy customers’ requirements for the new project. It would do the quickly action based on most of our customer’s OEM/ODM and dropshipping requirement.

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