Drop shipping is a business model that allows sellers to work from anywhere because they do not need to rent a warehouse, maintain an office, and hire employees. All they need to have is a computer that they can use to operate the website selling their products. Thus, the main costs the seller needs to pay in relation to his drop shipping business relate to the costs of running and marketing his website, e.g., fees for hosting, domain name registration, purchasing and maintaining web applications, and for advertising the website.
If a traditional “brick and mortar” business expands, it usually needs to invest additional resources to increase its capacity to serve more customers. For example, an additional warehouse may need to be purchased or rented and more employees may need to be hired in the shipping department of that business. However, sellers engaged in drop shipping can expand their business without incurring such additional costs. On the contrary, suppliers usually offer discounts to sellers who purchase large quantities of goods. The opportunity to expand the scale of a business while not engaging in any hassle makes drop shipping a suitable business model for digital nomads. There is no need to inspect and rent warehouses, negotiate and sign employment agreements, and organize inventory and shipping processes.
BUT you can also be ‘tax smart’ and avoid taxes with your successful dropshipping business! Also avoid mistakes with the VAT-rules. We can help you with this! Contact us like always on: Contact us now…
Or read more about digital nomad’s in Europe in this blog!
