There is no doubt that online business has lowered the price barrier for the newcomers to start their business.
Entrepreneurs can now connect to suppliers around the world and sell their products without holding inventory.
It is an awesome setup that allows people to have a convenient and profitable startup on the go.
However, people do get carried away with this system and start to dream of a six-figure business that does not require any investment.
The same applies to dropshipping.
Although you will need to put in less money as compared to opening a retail store, there is still an investment to make.
So if the idea of selling other people’s products is something you might be interested in, this post will help you with the overall dropshipping business model.
Here is everything you need to learn about investing properly and making money from of dropshipping.
What is Dropshipping?
Dropshipping is an e-commerce business system through which entrepreneurs can start an online store and sell products without purchasing inventory upfront.
When you make a sale, you pay the supplier, who then ships the product directly to the customer.
With dropshipping, there is almost a zero upfront cost of starting an online business as you do not have to invest any money on inventory.
You can start dropshipping for under $5 with the help of a free open source shopping cart.
All you need is a website for your business, a free credit card processing service, and a supplier or shipping servicer.
Once you have all these things, you are ready to take orders.
Basic Steps of Dropshipping
Before we discuss the prerequisites for an efficient dropshipping process, let us understand the basic steps.
Firstly, you need to find a dropship wholesaler who is fit for a partnership.
You and the dropship supplier will then decide on a price for the products you want to sell to customers.
Once you have an agreement set between you and your dropship distributor, here is how the dropshipping will work for your business.
First, the customer places an order for a product on your website.
Then, you collect the money from the customer.
Then, you forward the order and shipping details to the dropship seller, along with the price.
The supplier will deliver the product directly to the end customer as it was shipped from your online store.
In the end, the dropshipping seller will get to keep the difference between the wholesale price and the selling price.
Finding the Right Dropshipping Supplier
With so many online stores and an increasing number of new entrepreneurs entering the business, dropshipping has become very popular.
But as one thing starts to grow, scammers and fraudsters make their way into the system too.
Here, I will tell you how to find a dropshipping supplier who is not a fake and is a perfect fit for your business.
When you get in contact with the dropship distributor, ask them the following questions:
- How long will it take to process the order and ship out the product out of your facility?
- What are the shipping methods that the distributor uses to deliver the product? This is very important to know, especially if you have to ship products abroad. Ask the distributor if they use services like FedEx or UPS. What will happen if the customer orders a product overnight? Does the distributor rely on the US Postal System or not?
- Do they have a tracking system for you or your customer to check the status of the order? Tracking the distributor is very important for you to ensure that your product is being correctly delivered to the customer. Plus, customers also demand delivery tracking to ensure receiving the package on time.
- What will they do if there is an issue of lost shipment? You do not want your customers to get angry with you over issues beyond your control. As a retailer, you are responsible for customer service. Ask the distributor how much they are willing to compensate for a lost shipment. You should also know how much a lost shipment will cost you.
Before You Get Started
Finding a product to sell and a supplier is only half of the equation.
With the simplicity comes the more overlooked aspect of the business.
These parts of the puzzle are extremely critical and something you must understand before you start your very own dropshipping business.
Go about things without what I am about to cover next and you will fail faster than you started.
You Need the Right Training
Dropshipping is no doubt an amazing business.
The problem with most newbs that enter the industry is that they go in there thinking that they can look for some Youtube videos and they’re good to go.
Sounds simple and doable but the chances of you failing are extremely high and why most people fail to begin with.
There are many companies that offer training on such a thing for free and it works.
To a certain extent.
What most don’t know is that dropshipping is a skill and one that can be learned.
With programs like Amazing Selling Machine, you can learn from the best in the business.
They will literally make the difference from you making $5k/month to making $50k/month.
And no, I’m not exaggerating.
However, the choice is definitely yours and you will decide on which road you will take.
Starting out with dropshipping is very affordable and can be started with less than $50.
What most don’t understand is that you will NEED a nice little budget for some advertising.
You need the cash and you need the skills.
Without those skills, that ad budget will be thrown in the trash.
Just like dropshipping, mastering advertising is another skill in itself.
Put them all together and you my friend might just be able to make the kind of money that most people only dream of.
Customer Service is Your Responsibility
Make sure the policies of the drop shipper match your customer-service standards.
If your customers feel that they have been taken advantage of in some way, you cannot blame the drop shipper seller.
Again, you will be responsible for any bad customer experience with the delivery of the product.
When checking different dropshipping distributors, see their forums, blogs, and social media accounts to get a better idea about their services. See reviews and comments on social media as the drop shippers with a bad reputation are quickly exposed.
How to Find Products You Can Deliver through Dropshipping
To stay in an online business, it is necessary to provide large numbers of whatever products people are ready to purchase.
There are drop shipping businesses that operate in each market, niche, and product type.
They distribute everything from baby items, fitness equipment, clothing, electronics, beauty supplies, home décor, gardening accessories, and much more.
The best way to look for all the latest niches is to check Amazon, eBay, or other big online e-commerce websites.
The items that are on the bestseller list are perfect for a dropshipping business.
Keep an eye on the trends on social media platforms, especially Facebook and Instagram.
See what products are in the news and what products your friends and family are talking about.
One mistake most people with business startups make is that they avoid popular types of products, thinking that there is a lot of competition and they cannot make money from it.
When you are selling products that are trending, you also want to make sure to sell products that remain evergreen.
You must sell products that will always be in demand, and sales will remain consistent.
Dropshipping is one of the easiest and convenient online businesses out there.
You do not have to put so much money in the inventory, especially for the warehouse and packaging as your drop shipping partner has all the responsibilities to deliver your product to the customer.
To make more money with the dropshipping business, pick the right market niche and the product, and get associated with the right dropshipper supplier.
And if you don’t like the idea of placing ads, maybe you might want to try some regular old affiliate marketing instead.
Besides that, I wish you great success with your soon to be dropshipping business.
If you have any questions on anything at all, feel free to leave them in the comments section below.
Thanks for reading and good luck!