• Zaid Arshed, CEO at Armaan Resales


• 21.12.2021 11:15 am
#countless #alternatives

Many retirees are uncertain about their pension plans and seek ways to build passive income late in life. There are countless alternatives for generating extra income streams to help support a pension, such as investing in stocks or renting out real estate.

However, those options present a steep learning curve and involve varying degrees of risk. DropShipping on the other hand, is incredibly accessible as it doesn’t require the intensive learning period one can expect from the stock and property markets, and by 2025 the DropShipping industry is expected to be worth nearly USD 557.9 billion. 

Why not just open a physical shop? 

DropShipping mitigates many issues that might prevent people launching a conventional retail business to support their pension after they retire. 

The cost of an inventory? Renting space? Staff, electricity, water and cleaning costs? Those are all eliminated through the DropShipping model. 

Not only are typical retail costs eliminated, but unlike buying high-value stock or properties, there is no need for significant investment. Unnecessary inventory is avoided, and products are paid for with customers’ money.

This amounts to a relatively low-risk business with a national and potentially global reach. In turn, an individual’s pension has a great scope to continue growth with a minimal gamble.

What kind of challenges does DropShipping present for pensioners?

An immediate topic that might spring to mind is the supposed skills gap for older groups trying to find an entry point into the digital and e-commerce landscape. There’s no denying that young people have the edge over social media and online entrepreneurship, but it’s a disservice to suggest that ecommerce is inaccessible for older individuals.

As technology continues to develop in brilliant ways, innovations in automation and guided UI have made the internet less of an intimidating beast to the uninitiated.

Take digital marketing, for instance. To attract customers to your DropShipping store, you’ll need to run some form of marketing campaign, perhaps across social media or Google. Whilst this sounds laborious or creatively challenging, there are a host of automated tools to help you target specific groups with promotional messages. 

Such tools are relatively inexpensive when factoring in the amount of value they can bring to your DropShipping business. Google Adwords, Facebook and Instagram are key platforms that are straightforward to learn to use as a marketing tool.

Is that it?

No. DropShipping is not a life hack or a get-rich-quick scheme. It’s a business model that can be very rewarding due to the rapid growth of the e-commerce industry. A DropShipping store must be maintained for it to bring in consistent revenue. Still, that upkeep is not intense and typically amounts to digital marketing and following product trends for future opportunities.

This may seem like an overwhelming endeavour for those of pension age. Still, the average age of DropShipping store owners says otherwise. Global DropShipping Network, Armaan Resales, reports nearly one-third of their client base is of pension age opening up possibilities for anyone looking for a second income stream.