In the world of making money online, you must have been come across the term “Dropshipping”.
So what exactly is Dropshipping? Can we really make $100000/Year by Dropshipping? Or is Dropshipping still profitable in 2019?
Mentioned below are some of the basic questions that must be cleared before starting Dropshipping.
The Mechanism Of Dropshipping Is As Follows:
You can always test the water by dropshipping a few products and see how it goes. Choosing your niche for your is one of the most important step.
So what exactly is Dropshipping? Can we really make $100000/Year by Dropshipping? Or is Dropshipping still profitable in 2019?
Mentioned below are some of the basic questions that must be cleared before starting Dropshipping.
- What Is Dropshipping?
- How Dropshipping Works?
- Pros & Cons Of Dropshipping
- How To Start Dropshipping?
So, without further ado, lets get started….
WHAT IS DROPSHIPPING?
Dropshipping is a business mechanism in which the retailers do not keep a stock of products ordered from them, instead they transfer the order and shipment details directly to the manufacturer/wholesaler who in turn ships the goods directly to the consumer. In simple words, the retailer acts as a middleman between the consumer and the manufacturer.
A lot of people wonder that if dropshipping is legal, here is the answer – dropshipping is legal. At its simplest definition, it’s just a form of order fulfillment where the supplier handles shipping. Most big box stores do some dropshipping to supplement their online stores with additional low overhead products. Nothing illegal about it.
A lot of people wonder that if dropshipping is legal, here is the answer – dropshipping is legal. At its simplest definition, it’s just a form of order fulfillment where the supplier handles shipping. Most big box stores do some dropshipping to supplement their online stores with additional low overhead products. Nothing illegal about it.
HOW DROPSHIPPING WORKS?
In order to make $100,000 per year you need to sell at least 1000 product per month. So, if your idea of a successful Dropshipping store is to earn $100,000 per year, then you need to sell at least 34 orders per day.
As Because dropshipping is so popular and the internet is ripe with scammers, you first must learn how to spot a FAKE wholesaler.
First off, a REAL wholesaler will never charge a monthly fee for the privilege of accessing their catalog of goods. Genuine dropship wholesalers are merely distributors and their goal is to sell their product in bulk, not run a monthly membership site.
Secondly, a real dropshipping supplier will never sell their own products to the end consumer at wholesale prices.
Remember, a wholesaler’s primary customer is a retail shop and it would go against their best interests to compete with their own customers & Below is a screenshot of earnings from Dropshipping Store.
As Because dropshipping is so popular and the internet is ripe with scammers, you first must learn how to spot a FAKE wholesaler.
First off, a REAL wholesaler will never charge a monthly fee for the privilege of accessing their catalog of goods. Genuine dropship wholesalers are merely distributors and their goal is to sell their product in bulk, not run a monthly membership site.
Secondly, a real dropshipping supplier will never sell their own products to the end consumer at wholesale prices.
Remember, a wholesaler’s primary customer is a retail shop and it would go against their best interests to compete with their own customers & Below is a screenshot of earnings from Dropshipping Store.
The Mechanism Of Dropshipping Is As Follows:
1) The customer orders goods from the retailer’s website.
2) The retailer transfer order and shipment details of the customer to the manufacturer or the wholesaler.
3) The manufacturer or the wholesaler ships the goods directly to the customer.
“The good thing about Dropshipping is that you get all the profit.”
THE RIGHT APPROACH TO DROPSHIPPING –
Do Your Research
Rather than raising your inventory costs by packing your warehouse with an unpredictable product, test it out with a trial period using dropshipping.
More than just discovering if it sells or not, you’ll also have a better estimate of how much it sells for, giving you a more accurate number of what quantity to buy for your initial stock.
You can always test the water by dropshipping a few products and see how it goes. Choosing your niche for your is one of the most important step.
Don’t Oversell –
Market fluctuations aren’t always predictable. Rather than raising inventory costs by overstocking to meet unlikely maximums, having a dropshipping supplier as a backup saves you money without losing those sales.
Costly Products –
Any products that necessitate extra fees for storing or shipping, such as:
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Large products — Some products take up so much space, their sales don’t make up the costs of the excessive storage room.
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Heavy products — If a product’s weight makes it cost too much to ship, try dropshipping from a manufacturer or wholesaler.
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Fragile products — Fragile products require special care when shipping. In these cases, the supplier or manufacturer might be better equipped to meet these requirements than you.
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Valuables — High-value items like fine jewelry, antiques, etc., require additional security that not all warehouses can offer. Rather than risking theft, you could leave the storage to someone who can adequately protect them.
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Special Conditions — Maybe you want to sell items that need to be kept frozen, or materials sensitive to light. If your inventory needs special conditions, you may be better off dropshipping than storing it yourself.
HOW TO START DROPSHIPPING
1) Select a type of product you are going to deal with.(select one which has low competition). You can select multiple but I recommend that you only take up one category and deal in it. Example – mobile phones, laptops, hardware accessories etc.
Once you are sure that you can handle more items in your inventory, you can get more suppliers to work with you
2) Build an e-commerce website. This will be the website that customers will use to buy goods. Make sure the website is appealing. You can use Shopify to do the same.
3) Get manufacturers/suppliers to work with you. Tell them why working with you will result in great profits. At first, get only one manufacturer/supplier to work with you. Once you become a professional, ask more suppliers to work with you.
4) Start an Instagram page about your website or a Facebook page to acquire customers.
5) Have patience. Your customers will grow over time.
In order to make any business idea work, you need a good plan. Once you gauge your audience, identify products you want and find dropshippers, it’s time to build your online store. Let’s not forget you can automate your Shopify store, so you continue earning as you sleep.
You can connect various stores to your account, including Alibaba, eBay, Etsy and more.
So, that was all about basics of Dropshipping. Hope you like the content this money making blog, don’t forget to drop a comment and share with your friends.
Online Business Addict 