Column: Dropshipping – Training Wheels for Young, Ambitious Entrepreneurs

“Dropshipping is dead.”

Many aspiring young entrepreneurs are misled by this statement commonly shared by online business gurus. Dropshipping, a common e-commerce strategy, is often associated with the practice of selling products that are not readily available.

For example, if someone is dropshipping phone cases, they would look for and list a phone case on their store page. Let’s say the dropshipper lists the product for $30.00. When a customer buys the product, the dropshipper collects payment and ships the order to their supplier, usually overseas in a country with cheap labor like China.

Furthermore, let’s say a supplier sells phone cases for $10.00 each – including shipping. The dropshipper pays $10.00 for the product and keeps the remaining $20.00. From there, the rest of the process falls on the supplier’s shoulders as the supplier ships the case to the customer.

While many argue that dropshipping is oversaturated and impossible to achieve these days, this model is ideal for teen business owners. It can be run with just a laptop, phone, and $100 in startup capital. Dropshipping stores are low-investment, low-cost, easy to grow, and easy to gain experience with.

Dropshipping is one of the most achievable business models, especially for young people who still have to balance school and social life. There is virtually no involvement in everyday life in dropshipping. Most of the responsibilities involve marketing, which is mostly done online, and order fulfillment, which is as easy as clicking a button. With other business models, many owners have a myriad of responsibilities and hands-on involvement. It is almost unheard of for a teenager to own a restaurant, manage a hotel, or run a brick-and-mortar store.

When it comes to dropshipping, young entrepreneurs have much more scope.

According to a study conducted by Career Expert, The average dropshipping income can vary greatly from person to person, with some earning less than $35,000 per year and others earning up to $100,000.

The popular appeal of dropshipping is its low cost and low barrier to entry. Most teens don’t have more than a thousand dollars to their name, but that’s not a problem because running an online store is very cheap. E-commerce site builders like Shopify sell 3 months of any plan for $1. After 3 months, the basic plan costs around $40.00 per month, which can be recouped with just a few sales, depending on what product you’re selling.

According to Forbes, With a small initial investment and the right product line aimed at a specific market, entrepreneurs can easily turn a side project into their main business. For as little as $100, anyone can start and grow a business.

Social media platforms like TikTok and Instagram have made it easier than ever to reach a large audience. Businesses no longer have to pay for TV ads, run columns in newspapers, or send out catalogs every month. Billions of potential customers are online every day, making organic marketing—reaching customers through free advertising—an achievable, cost-effective method for teen business owners.

When it comes to authentic marketing, teenagers have a distinct advantage. Since many of them spend hours on social media every day, they understand current trends. This will help them find the best methods to grow their brand.

Every successful entrepreneur has made mistakes and failures, but they usually have years of experience to help them make decisions. For young entrepreneurs, dropshipping can provide a great learning experience in business management, social media marketing, sales, finance, and countless other essential skills.

Statistics show that Just 10% of dropshipping businesses succeed and 90% fail within the first year, if not the first month.

Ultimately, the more effort dropshippers put in, the more likely they are to succeed. However, and without a doubt, the lessons they learn along the way will be invaluable on their path to success.

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