The Pros and Cons of Buying vs Building a Dropshipping Business
Table of Contents:
- Introduction
- Buying a dropshipping Business vs. Building Your Own
- Where to Buy an Already Established Dropshipping Store
- Considerations When Buying an Already Established Store
- Store Price Range
- Additional App Fees
- Terms of Service and Account Closure
- Owner's Interest and Niche
- Why Consider a Custom Dropshipping Store
- Cost Comparison
- App Fees and Customization
- Retaining Full Ownership
- Niche and Product Selection
- Warning Signs When Buying a Custom Dropshipping Store
- Low Price and Quick Turnaround Time
- Limited Platform Features
- Efficiency and Customization
- Recommended Custom Dropshipping Store Service: AliDropship
- Features and Benefits
- Customization Process
- Package Options
- Conclusion
The Pros and Cons of Buying an Already Established Dropshipping Store
Buying a dropshipping business has become an attractive option for many entrepreneurs looking to enter the e-commerce industry without the hassle of starting from scratch. In this article, we will explore the pros and cons of buying a dropshipping business versus building one yourself, as well as where to find already established stores for sale and the considerations that come with purchasing them.
Introduction
The world of e-commerce has opened up endless opportunities for aspiring entrepreneurs. Among the various business models, dropshipping has gained significant popularity due to its low startup costs and flexibility. Dropshipping allows individuals to sell products online without having to hold inventory or manage shipping logistics. Instead, the retailer transfers customer orders and shipment details to the supplier, who then ships the products directly to the customer.
Buying a Dropshipping Business vs. Building Your Own
When it comes to starting a dropshipping business, there are two primary options. You can either buy an already established dropshipping business or build one from scratch. Each option has its advantages and drawbacks, and it ultimately depends on your personal preferences and goals.
One of the main reasons why some entrepreneurs prefer to buy a dropshipping business is to save time and effort. Building a successful online store requires substantial work, from product research and selection to website development and marketing. Buying an existing business eliminates much of this initial groundwork, allowing you to jump straight into managing and growing the store.
On the other hand, building your own dropshipping business gives you complete control and ownership from the start. It allows you to choose the niche, select the products, and build a brand according to your vision. While this option requires more time and effort upfront, it can be highly rewarding in terms of long-term control and potential profits.
Where to Buy an Already Established Dropshipping Store
If you decide that buying an already established dropshipping business is the right choice for you, there are several platforms where you can find such stores for sale. Two popular options are Shopify's Exchange Marketplace and Flippa.com.
Shopify's Exchange Marketplace is a dedicated platform where individuals can buy and sell existing Shopify stores. It provides a wide range of dropshipping businesses of varying sizes and niches. By browsing the marketplace, you can explore various stores and filter the results based on price, revenue, and other factors.
Flippa.com, on the other hand, is a comprehensive marketplace for buying and selling online businesses of all kinds. It encompasses not only Shopify stores but also websites, apps, and other digital assets. Like Shopify's Exchange Marketplace, Flippa allows you to search for dropshipping businesses and provides detailed information about each listing.
Considerations When Buying an Already Established Store
Before purchasing an already established dropshipping store, it is essential to consider several factors that can significantly impact your experience as a new owner. These considerations include the price range of available stores, additional app fees, terms of service and potential account closure, and the owner's interest and reasons for selling.
The price of an already established dropshipping store can vary significantly. Some stores are listed at just a few hundred dollars, while others can reach seven-figure prices. It is crucial to evaluate the revenue and potential profitability of the store alongside its asking price to ensure it aligns with your budget and expectations.
In addition to the store's price, it is essential to consider any additional app fees that may be associated with its operation. Some stores rely on various apps to enhance their functionality and optimize their performance. These apps often come with monthly subscription fees that need to be factored into the overall cost of owning the store.
Another crucial aspect to keep in mind when buying an already established dropshipping store is the platform's terms of service. Platforms like Shopify have their own terms and conditions that govern store ownership and operation. It is important to read and understand these terms, as they can include provisions that give the platform the authority to close accounts at any time and for any reason.
Lastly, the owner's interest and reasons for selling the store should be considered. It is not uncommon for store owners to grow tired of the niche or lose passion for the business. Understanding the motivation behind the sale can give you valuable insights into the future potential and sustainability of the store.
Why Consider a Custom Dropshipping Store
While buying an already established dropshipping store offers convenience and a head start, there are several reasons why you might consider a custom-made dropshipping store instead. A custom store allows you to have more control over the niche, product selection, and branding, ensuring that the store aligns perfectly with your vision and preferences.
One significant advantage of a custom dropshipping store is cost. Established stores can range in price from a few hundred dollars to thousands or even millions. By opting for a custom store, you eliminate the premium associated with an established store and only pay for the essential components needed to launch a successful dropshipping business.
Additionally, a custom store allows you to avoid additional app fees. Established stores often come with a pre-selected set of apps and integrations, which may include some that you do not need or prefer. With a custom store, you have the freedom to choose the exact apps and integrations that best serve your business, minimizing unnecessary costs.
Retaining full ownership of your store is another advantage of a custom dropshipping store. When you purchase an established store, you are bound by the terms and conditions set by the platform hosting the store. This means that the platform can, in certain cases, close your account without notice or justification. Having a custom store gives you complete control and ownership, reducing the risk of unexpected account closure.
Furthermore, a custom dropshipping store allows you to select a niche that genuinely interests you. Buying an established store often means inheriting the previous owner's niche choice, which may not align with your passion or expertise. With a custom store, you have the flexibility to choose a niche that resonates with you, increasing your chances of long-term success and enjoyment.
