Welcome to the world of challenging dropshipping. And this is also an introductory article to let you know what dropshipping is. Its advantages and disadvantages. Understand why it is extremely important for an online business person, whether amateur or professional. Let’s get started…
What Is Dropshipping?
Dropshipping is the retail method where a store owner does not store the product in its stock, you can simply understand “you will sell goods without shipping“. This is a form of business where you are a retailer but don’t have to keep the goods in your warehouse. When a customer makes a purchase, you will contact your supplier for the purchase and ask the shipping provider for the order.
You will not have to transport your goods to the customer but focus on product marketing, order tracking and customer care. The profit you make is the price difference between the supplier and the price you sell to customers minus the cost of shipping. The master of this process is called the dropshipper.
Understand in the simplest way is that you buy the product in a place where the price is low and sell it in one place at a higher price. The price difference is the amount you earn. The difference depends on the type of product, it can be up to several hundred percent if you have the Supplier search skill and product selection. As usual, the profit margin of 30-60% is great.
Who Should Make Money With Dropshipping?
This question is really difficult to answer, it depends on whether you dare to get out of the safety circle or not? In addition to people considering dropshipping and online business as the main occupation, earning a really big income stream to feed themselves and their families.
There are many people who are looking for a left hand job. Therefore, the following 3 groups will be extremely suitable if choosing dropshipping to earn extra income.
1. Office worker
If you are an office worker and have 2-3 hours per day. Want to find a source of income other than the salary of the company. Congratulations, because dropshipping is extremely suitable for you. Of course when you have a small income. Wanting to grow your sales even further means you need more time and effort.
At that point you will make the decision to continue earning $ 200- $ 300 / month income with dropshipping or stop working at the company to do fulltime to increase your earnings N times. The decision will be based on the feelings in your heart.
You will have a lot of free time. This is a very favorable factors for you to study the market, products. Another great thing about dropshipping is that it is very suitable for students. The initial capital is almost zero.
You only need to spend a lot of time learning and experimenting. You will learn millions of new knowledge instead of spending all day playing games, surfing the Facebook.
3. People who started to participate the Online Business
When you are new to online business, knowledge and experience is a factor you are missing out on a lot. Knowledge of market analysis, product search, sourcing, shipment, online marketing knowledge, and billions of other knowledge.
Dropship will equip you with the basics so that you can confidently enter the harder market, which is affiliate marketing. Not only that, there is also a significant income stream, which can give you a certain amount of capital to startup.
Six Steps To Starting With Dropshipping
Step 1: Find products, choose suppliers, negotiate with them about prices, choose shipping methods by price and shipping time. (This is an extremely important step, deciding 80% of the campaign’s success)
Step 2: Channel selection. (Post your product to your store on ebay, amazon, or own webstore)
Step 3: Customers will enter your store to purchase and pay you through Paypal, Payoneer account.
Step 4: Buy and send to guests. You use the money paid to you by the supplier and ask the supplier to ship the product to your customer.
Step 5: Suppliers pack, transport goods to customers. Send tracking info to you. You track orders and customer care.
Step 6: Summarize after one month of sales, to see how much profit you get for each product, review and optimize the steps to increase profits over the next sales.
Pros & Cons
Low initial capital
Perhaps the most advantage of Dropshipping is that you can start an online business without having to invest a large amount of money for inventory. Since you do not have to manage the warehouse, so your management costs will be quite low.
In fact, many successful dropshipping businesses are putting their home office with just a laptop and spending less than $ 100 a month. As you grow, this cost can increase but still less than traditional business enterprises.
Easy to implement
With the dropshipping model, you will not have to buy any product unless you have already sold the product and the customer has paid.
If you do not need the investment cost for inventory, you can start a successful dropshipping business with very little capital.
Easy to get started
All you need is just a website. With dropshipping, you do not have to worry about:
- Warehouse Management.
- Packing and shipping orders.
Choice of product type
Because you do not have to spend money to buy items that you sell, you can offer a range of products to your potential customers. If the provider stores a catalog of goods, you can list them all on your website for free.
Easy to scale
With a traditional business, if you want to get three times more sales, you will spend three times as much time and effort.
By leveraging the dropshipping supplier, the full processing of additional order processing will be handled by these supplying units, which allows you to scale up your sales efforts with less effort. More for this increase in sales.
Commissions received immediately after completion of each invoice. Not waiting for a 3rd party review.
This is the biggest disadvantages for a highly competitive dropshipping business environment. Because it is so easy to get started and the investment and operation costs are very low.
People who make money online will set up a store and sell bargains to boost sales. They have invested very little capital to start a business and they are capable of operating with low turnover.
If you store all of your merchandise, it’s easy to keep track of items that are out of stock, but when you have supplies from multiple warehouses, also place orders from on many other networks. You will find it difficult to track where your goods are.
If you work with many different suppliers, the products on your website will be ordered up at different suppliers – this makes your shipping more difficult.
Mistake from the supplier
Have you ever blamed something that is not your fault, but you still have to take responsibility for these mistakes? These things rarely happen. And do not worry too much. Because each vendor has their own policy.
If you do not know how to Set up accounts in amazon, ebay is very susceptible to being suspended. Want to set up your own webstore must have knowledge of web, domain …
Can You Make Money With Dropshipping?
This is a question most people are most interested in learning a new field. The good news for you is that earning money with dropshipping is not difficult if you know how. Oh! What if you do not know how? Simply put, it takes time, effort to experiment, experiment and experiment. How much depends on your capacity.
In this 21st century – time is money. If you are a new toddler entering the profession, then 90% of you will fail immediately in the original chess. Otherwise, I would be surprised if you succeed. So keep your head cool and full of energy so you can reach the end of the road.
The potential of the internet is huge, if you know how to exploit, it will be a never-exhausting resource. If you believe in something, you get it. I’m not sure you will succeed at the first campaign, but I am sure you will make money, especially on the internet. I simply believe so and I have made money on the internet.
Here you have the most overview of dropshipping. Understand the advantages and disadvantages of this very potential online business model. If you decide to step into the online business world. Here you have the most overview of dropshipping. Understand the advantages and disadvantages of this very potential online business model.
If you decide to step into the online business world. Keep your faith and your stance. This road may not be smooth, but I believe if you have determination and clear purpose, you will definitely succeed in all other areas. After reading this article, if you want to challenge yourself… Let lift up your hand and act!