Should You Go into Business with Another Dropshipper?
While dropshipping can be a one man show, you can also get a partner. Today we’re going to discuss the question “should you go into business with another dropshipper?”. We’re going to outline the positives and negatives to come to a conclusion. Hopefully this will paint a clearer picture of whether getting a partner for dropshipping is the right idea or not.
It’s worth mentioning that a lot of what will be discussed today is individualistic. It depends on your own circumstances. With that said, it’s important to do some independent thinking on this one. Without further ado, let’s get into it.
Should You Go into Business with Another Dropshipper? – The Important Factors
Finances – This is going to be both good and bad. Let’s talk about the good first. I’m presuming you and your hypothetical partner will be splitting everything 50/50. That means you will be sharing the costs between one another. This means you will only have to pay half of the ad and product costs.
Doing so could be advantageous for those of you who are running on a budget. It could allow you to do more than with what you actually have. This does not mean dropshipping is expensive. As I’ve said before, it is low risk as there are low start up costs due to lack of inventory and physical presence. However, there is a small start up fee. For example, instead of needing $1000 to start you would only have to provide $500.
Now let’s talk about the bad. You will be sharing the profits between you and your partner. This means you get to keep half of whatever you make. For those who want to maximize their profits, having a partner may not be the best idea.
It’s important to look at this information with context. With the right partner you could possibly double the profits that were possible as sole owner. In that case, having a partner would not make a difference to your bottom line. This is a hypothetical scenario but it’s important to think about this intelligently.
Relationship – Don’t forget relationships when thinking about the question “should you go into business with another dropshipper?”. Business relationships are very tricky things. Friendships have been ruined over money and business. I’m not saying this to scare you, I’m just making you aware of the reality. If you’re going into business with someone you must know them extremely well. You could almost say you need to trust them with your life.
They are going to be making decisions that could affect your livelihood and wellbeing. With that said, think long and hard about going into business with someone, even if they’re your best friend. Who is a good candidate for a potential partnership then? You want someone who has the same vision as you.
There is no point going into business with someone who wants to take the project in a completely different direction. This will only create friction further down the line. Find someone with the same ethics and values as yourself. This ensures you will both be on the same page in regards to marketing strategies and customer service.
Trust is huge in business. If you wouldn’t trust that person with the keys to your house for a month, don’t go into business with them. Going into partnership with someone is a big move. Make sure you have considered the long term consequences as well as the future ones as well. What seems right today may not be right in six months time.
I will say that the default mode for most dropshippers is sole ownership. Sharing a store isn’t that common but it does happen occasionally. Make sure your potential partner is knowledgeable and eager to learn as well. That will bode well for the future of your business. I hope you enjoyed our discussion on the question of “should you go into business with another dropshipper?”.