The Pros and Cons of Dropshipping Hair Extensions vs. Traditional Retail

We’re all about balance and education here at Dropship Beauty because we want to set you free to grow a business you will love at all times.

Dropshipping is a great way to do it, but as with every business model, there are some pros and cons you need to know about.

The good news is you’re doing business with and hearing from the people who can set everything straight, we even took the first step and prepared a ready to use dropship websites for you .

To get you off to the fast start you’ve been dreaming of, we’re going to compare dropshipping with traditional in-person retail.

Along the way, we’ll share our hot takes and top tips on how to get the most out of the dropshipping model. 

Let’s get this rolling! 

The Startup costs are on your side

Running a traditional retail store is as much about stock storage and logistics as anything else.

Even if you have the perfect physical location for your store, you need to have warehousing, stock rooms, and a way to check and maintain your inventory. 

One of the potential issues with selling hair extensions the traditional way is that they need to be stored in a dry and secure manner to prevent damage and splits from occurring.

After all, can you really expect a customer to buy straight braiding hair that has been sitting at the back of your warehouse for six months?

Dropshipping sidesteps these issues on day one by having a team like our experts here at Dropship Beauty handle all of this for you. Job done!

Scaling is Easier when you’re Online

Curly hair extensions come in so many lengths, colors, and curl sizes that before you know it, you’re holding hundreds of SKUs.

The problem with this is that you’re probably going to get around 80% of your sales from less than 20% of your SKUs, but you still need a comprehensive range.

Not sure how to work out which products are going to be your bestsellers without any prior experience in the market?

Dropshipping means you never have to hold stock when you’re launching and scaling a new hair extension business. 

Dropshipping Breaks Down Barriers

Minimal investment is the name of the game when you want to get your new hair extension business off the ground without outside investment.

Dropshipping allows you to save money on storage, renting premises, business rates, and staffing costs.

Get rid of all these on the first day of business, and you’ll have virtually no overheads and far more agility and flexibility.

Ideal when you want to be able to hit the ground running and grow your business in style. 

You need to Maintain Quality Control

Stock quality, shipping times, reliable delivery…the list could go on and on. 
These are all things that you need to focus on every single day when you run a successful hair extension business, and it can feel overwhelming. 

The good news is that when you partner with the Dropship Beauty team, you can make sure that you only ever supply products of the very highest quality.

Add in the fact that you will have access to a globally established shipping and delivery network, and you can sleep easily, knowing that the basics will always be covered the right way.

Profit Margins should be your Focus

Many people will tell you that one of the chief disadvantages of dropshipping is that you will get lower profit margins.

Their reasoning with this one is that you’re only buying at the point of making a sale, and therefore, you lose out on the economies of scale that come when buying in bulk. 

While we certainly agree that you won’t be buying in bulk, we see this as a crucial advantage for your business.

Hair extensions, by their very nature, go in and out of fashion throughout the year because trends are constantly changing and evolving with the seasons.

Do you really want to be sat on thousands of outdated hair extensions just because you wanted to slightly push your margins up? It doesn’t make sense!

There will always be Competition

Critics of dropshipping (typically those who believe physical retail is the only way to do it) will tell you that there is far too much competition in the online world.

Saying that the market is saturated and that you should open a physical store in your local area is all good, but it misses a really important point.

Traditional retail stores still have to compete with all of the online hairline extension businesses out there — they are not somehow avoiding all of these competitors.

In fact, physical retail stores are far less agile and much harder to redirect as trends and opportunities change.

They are tied to one location, have to hold all of the stock and buy it before they sell it, and have far greater overheads.

All of this puts them at a disadvantage when it comes to competing in an increasingly competitive market. 

Customer Service always Matters

Whether you’re meeting your customers in person or connecting them with beautiful full-body wave extensions via a virtual interaction, customer service truly matters.

Making sure that you have complete control over how your customers are treated and served is something that every business needs to focus on, and you are no different. 

One of the real plus points of partnering with a team like us here at Dropship Beauty is that we are the experts when it comes to customer service.

We serve thousands of customers from all walks of life every single day and know the importance of making the right first impression. 

The Last Word

Dropshipping is a fast, affordable, and efficient way to grow a highly lucrative hair extension business, regardless of where you’re based in the world.

By partnering with a trusted supplier who cares about your business as much as you do from day one, you can stand out online for all the right reasons.

Once you do this, all you have to do is sprinkle in a little of your creative marketing talents, and you’ll be all set. 

Go do this!