what is dropshipping

What Is Dropshipping Business And How Does It Work – 2020

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What is Dropshipping? In this article, we’re going to talk about Dropshipping, what it is, and how you can get started. And stick around the whole article until the end because I’ll give you a few personal suggestions and things to keep in mind as you’re getting started.

Let’s say you’ve been thinking of opening up your own online e-commerce business, but you don’t know that where to start. You don’t know what to sell online, you don’t have the money to invest in products and you don’t have any place to store inventory. That’s what dropshipping is all about.

With an e-commerce store or dropshipping, you can sell stuff online without the products. All you need is an internet connection, a computer, an online store, and a basic understanding of the market and how to sell online.

What Is Dropshipping

Here’s How To Start Dropshipping Business

  1. First, you find a product that you want to sell from a supplier then list that product on your store at a price you set.
  2. Next, when somebody places an order for that product, your customer pays you the retail price you’ve set, and then you make a profit.
  3. Then you’ll place the customer’s order with your supplier at their wholesale price and shipped it directly to the customer.

what is dropshipping business

For example: So, let’s say you’ve found this watch on a supplier’s website for $50 You would then list it on your website for $80. When the order comes in through your website, you then place your order with your supplier using your customer’s shipping information, keep the $30 profit, and have the product shipped directly to your customer.

A Couple Of Challenges That Need To Be Considered

Finding suppliers with good quality products, and making sure you have visibility into your customer’s order fulfillment process. And, you can easily find suppliers on your own. And you can also end up spending a lot of time researching and negotiating with suppliers to guarantee your customers’ satisfaction.

Another option is Oberlo, which with a few clicks gives you access to billions of products to sell, and has dozens of other features to make your life becomes easier, like monitoring inventory levels, calculating profit margins is on automation, fulfilling and tracking orders, monitoring shipping status, measuring delivery performance and more.

So Why Do People Get Into Dropshipping?

1. Easy To Get Started: Dropshipping easy to get started and you can dropship with incredibly low investment costs.
2. No Business Entity Required To Start: You also don’t need to have an established business entity when you start, even though it’s smart to have one once you grow.
3. No Inventory Management: You don’t have to worry about managing inventory, packaging, or tracking, which means you can focus almost on marketing, promotion, and branding the store.
4. Easily Access To Millions Of Products: You have access to millions of products instantly that suppliers are constantly researching to determine what’s trendy and what will sell.

5. It Is Easy To Scale: It is easy to scale because you can hire virtual assistants as your order volume increases.

There’re Six Steps To Start An E-commerce Dropshipping Business:
Step 1. Start A Free Trial On Shopify
Step 2. Install Oberlo App
Step 3. Import Products To Your Store
Step 4. Enable Payment Gateways
Step 5. Send Traffic To Your Store

Step 6. Produce Quality Content

There’re Some Challenges With Drop Shipping Too:
  • Higher Potential  Competition
  • Supplier Errors
  • Shipping Times Usually Longer

Few Additional Things To Keep In Mind While Starting A Dropshipping Business

  1. There is a Learning Curve: Dropshipping is pretty easy to learn, but
    there is a learning curve, and you will experience challenges along the way. However, mistakes can become learning opportunities, and if you can develop resilience along the way, there are plenty of people out there finding a lot of success dropshipping products.
  2. It is Not Free: While there is a significant advantage in terms of capital investment over traditional e-commerce, but dropshipping isn’t free. You’ll have to spend your money to drive traffic for sales, market your products, and handle returns.
  3. There is No Overnight Success:  There is no overnight success, and this isn’t a get rich quick scheme. Dropshipping still requires you to work consistently for the store, but it’s not going to succeed without your hard work. You’ll always need to invest your time in growing your business.
  4. Don’t Source Copyrighted items:  Don’t source copyrighted items. This is illegal all around the world and can cause you some serious trouble. Choose products from Oberlo a network of trusted suppliers to avoid copyright infringements. This way, you can rest assured that you won’t infringe any copyright laws.
  5.  Start Small: If you’re completely new to dropshipping, start small with a single product or a small handful of complimentary items from a single supplier. You can always add more inventory as you become comfortable, but it’s better to start small and build than to start big and become overwhelmed.
Conclusion

Once you’re feeling comfortable with dropshipping, diversify. Many drop shippers don’t rely on a single online store for their entire income but operate a series of e-commerce stores targeting various niches to make multiple sources of income.

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