Dropshipping businesses that are making good money are popping up for sale on many website exchange markets, so the question is Should You buy a dropshipping business?
The answer is NO. There are many factors that lead us to this answer but one crucial factor is, why would you sell a business that’s making money? Buying a dropshipping business as a newbie can lead you to a potential loss & many more.
It can also depend on your financial condition, but I’m writing this blog from the perspective of a newbie buying a dropshipping store/business.
Here are some of the answers on quora on If you should buy a dropshipping business:
As I said before there are many reasons, not to buy a dropshipping store & In this blog, we’ll get deep into this topic.
Let’s dive in.
Should You buy a dropshipping business?
Let’s look at, why you should not buy a dropshipping business & when should you buy a dropshipping business plus the pros & cons of buying a dropshipping business.
1. Dropshipping Business Explained
Do you know what a dropshipping business means?
Dropshipping business is not a long term business, in short, you have to find a trending product, market the hell out of it & then move on to the next trending product.
Now where many people get dropshipping wrong is when they see dropshipping business as a long term eCommerce business in which they can sell the product till their death.
In dropshipping business, you have no control over quality, quantity, competition, etc. So how can you improve your products to retain your existing customers? You can’t. And that’s why drop shippers have to move on to other products regularly.
Keep in mind that dropshipping is a business model & not a product model ie- the game is fully based on how the model works & not the actual product.
Now answering the question – “Should You buy a dropshipping business“?
2. Why Dropshippers Sell Thier Dropshipping Businesses?
If you have a dropshipping business that is making money, why would you sell it? Because sooner or later, dropshippers know that the product will be downtrend & the market will lose interest in the product.
Dropshippers try to sell the business just when they realize that the Facebook ad conversions are about to go down or they have marketed the hell out of the product and now there’s no market left to cover the product.
3. Why You Should “Not” Buy a dropshipping business
Now as I think you are a newbie buying a dropshipping business is the worst way to invest your money in.
You have to pay an average of 30X the revenue of the dropshipping store ie if the store makes $1000 in revenue (Not in profits) then you would have to pay 30K & that’s just straight-up stupid deal.
Keep in mind that you have no control over prices, quality, or even the brand name they made previously before selling it to you.
They might have the worst customer service & customers that bought from that store, don’t like the service or they’ve already marketed the hell out of the product, or the product has a high return rate, & million other things.
Just keep in mind that if my dropshipping business is making me money, why would I sell it? I’d hire a VA to look after everything & I’ll enjoy the profits.
But because dropshipping is a dynamic business model & dropshippers have to hop on to new trends quickly to get profits, and so buying a dropshipping store is never a good option
Also, creating your store will give you the experience required to run a successful dropshipping business & you’ll have the knowledge & expertise to judge an eCommerce store before buying it.
Of course, there are some reasons too when you can & should buy a dropshipping business & let’s look into that.
4. When Should You buy a dropshipping business?
You can buy a drop shipping business when you think you have the right knowledge & expertise to evaluate a dropshipping business properly.
To have the knowledge & expertise you’ll have to create your own dropshipping stores from scratch & fail 2-3 times & that’s okay. I’ve failed more than 5 times & I’m glad I failed because now I know the ins & outs of the dropshipping business.
Many Investors buy a dropshipping business too just for the cashflow it provides & sometimes you can get a better deal for a dropshipping business but that depends if you know how to find the perfect deals.
Everything aside if you have less than 2 years of experience in dropshipping then I would recommend you to not buy a ready-made store.
So I hope this blog makes it clear that you should never buy online dropshipping business no matter how much money that business is making unless you have experience in buying & selling dropshipping stores.
No one would sell it the store was making money, just keep that in mind.
Start a dropshipping store, maybe fail at some & eventually you are going to succeed.
Also are you subscribed to my newsletter yet? because I send out weekly dropshipping news, tips & tricks which are very exclusively to newsletter.
Have any questions? Comments? Leave them below & I’ll answer them.