Digital games drop shipping is a relatively new idea and it makes eCommerce business brilliantly simple. But what are its biggest advantages and drawbacks?

Dropshipping is the all-the-rage buzzword that crops up on occasion of discussing ideas for online business. Mostly, dropshipping will evoke something along these lines: a low-cost business, quick money, a piece of cake for starting entrepreneurs. But are these claims really true? Before we validate them, however, you may want to know what games drop shipping is. Then, we will shed some light on the possible upsides and shortcomings of this fulfilment model.

What is games drop shipping?

The main concept of drop shipping comes down to selling products that you don’t actually own. It’s your wholesale supplier who will store, ship, and send orders to your customers. No pre-purchased inventory, warehouses and all that fulfilment hassle – that’s how dropshipping works.

The advantages of dropshipping

This model of distribution comes with numerous benefits – learn what you can gain with it.

1. Low start-up investment

With dropshipping it’s extremely easy to start selling online. You enter the market quicker than most retailers. What you only need for a start are a website and paying customers. You neither invest heavily in inventory nor buy it in advance. Games drop shipping lets you offer a wide variety of products without spending a penny on them. Start a website, bring your customers to it, and sell!

2. Flexible location

Stories of people operating their dropship businesses from exotic beaches of Hawaii are not that uncommon. You too can manage your dropshipping business from virtually any place in the world, with Internet access. Add to it a website, a couple of verified suppliers, and you’re ready to go. With games drop shipping, the life of a digital nomad is within your reach!

3. Unlimited inventory

When you have trusted suppliers who provide your business with dozens of products, we can safely assume that you have access to extensive, if not unlimited, inventory. This holds especially true for physical products.

It looks even more optimistic if you sell digital products like ebooks, software or digital games. An example of a service that gives you almost unlimited access to digital game stock is CodesWholesale. Not sure whether selling games is something for you? Get to know our point of view here.

4. Time-saving and convenient

Taking the path of the least resistance is hard-wired into our brains. Entrepreneurs are no exception to this. Operating your dropship business is plain and simple – you don’t have to worry about fulfilling orders, managing a warehouse or arranging a physical storefront. It’s incredibly convenient to delegate packing and shipping to your dropship partner. On top of that, you won’t have to pay upfront for an item until it’s sold. That’s what healthy cash flow is all about!

Games drop shipping also frees up your time so that you can streamline your daily operations, polish your marketing campaigns, and, in the end, deliver better service.

5. Broad product offering

Imagine a retailer who inventories every product for sale and one who doesn’t but still prospers. Now imagine both of them trying to expand their product offering, say, with laptops and game consoles. This may be a bit harsh for the owner of the brick and mortar store because of the limited space. With digital products, it’s not an issue though. You can add them to your regular stock and test whether they will sell or not.

The downsides of games drop shipping

Like any other business model, games drop shipping benefits come at a cost – here are some of the shortcomings inherent in dropshipping. Their awareness will help you come up with relevant solutions.

1. Unreliable supply partners

There will be loads of shady businesses out there. Plenty of scams and disappointments along the way. A huge disadvantage of dropshipping is that it often entails scam issues. Before placing the first order, we advise you to arm yourself with patience and perform due diligence.

Alternatively, you can start sourcing digital products with CodesWholesale. The digital distribution platform offers access to hundreds of screened supply partners with the impeccable reputation. More on how to start a digital game dropshipping business here. Save yourself the burden of online search and start selling games with CodesWholesale!

2. Low-profit margins

calculator and paper for games drop shipping profit margin calculationYou are not the only one taking this route. Many online retailers sell products at what you might call amazingly low prices. Ergo, profit margins are often razor thin to drive more customers to a store. On top of that, certain products spawn lots of competition. And it’s not rocket science that low prices combined with fierce competition can be deadly for a business.

One sure-fire way of overcoming this may be is finding a profitable niche or simply inventorying some products. But what is a profitable niche? Take, digital games, for example. Experts say that global digital game market will be worth 272.24 bn by 2022. To be honest, we don’t think there is any better alternative than that.

A final word

Is dropshipping a lucrative way of doing business? Definitely, but with a few caveats to keep in mind. First, go for products with good prospects for high margins. Second, forge a relationship with respected and credible suppliers. You might also want to take the easiest route and get it digital and simple with CodesWholesale. Whichever way you go, gear yourself up for a fair amount of work as dropshipping is more of a step-by-step venture rather than an overnight success.