Let’s say you’ve been thinking about opening up your own online business, but you don’t know where to start you don’t know what you should sell. You don’t have any money to invest in products, and looking around yet don’t have any room for inventory. Well, that’s what dropshipping is all about.
You see, with dropshipping, you can sell stuff online without the products ever being in your hand. All you need is a computer, an online store and a basic understanding of how to market and sell online. Here’s how it works.
First, you find what you want to sell from a supplier and then list that product on your website at a price you set. Next, when someone places an order on that product, your customer pays you the retail price you’ve set, and you make a profit. Then, you’ll place the order with your supplier at wholesale price and have it shipped directly to your customer.
Here are the sections of the article you can easily jump on!
- Why Do People Get Into Dropshipping?
- Challenges Associated With Dropshipping
- How Do I Get Started Dropshipping?
- Additional Things To Keep In Mind
So, let’s say you found a watch on a supplier’s website for $10. You would then list it on your own website for $30. When the order comes through your site, you would then place your order with your supplier using your customer’s information, keeping the $20 profit, and having that product shipped directly to your customer. That’s it.
Now, I know what you’re thinking;
Why wouldn’t somebody just order the watch directly from the supplier’s website?
1- It’s A Big Internet
It’s a big internet and customers may not know about the supplier to buy from them directly.
2- Product Isn’t Everything
When people are buying things, they’re not just buying into products. They’re buying into the marketing, positioning, trust, brand and lifestyle these products represent. With drop shipping, you can focus on marketing your products and saying the right things, at the right time, and on providing real value to the right people. Because, you’re not warehousing any inventory, or dealing with most of the other challenges that come with running an e-commerce business.
Now, a couple of challenges that do need to be considered when dropshipping are finding credible suppliers with good quality products and making sure you have visibility and your customer’s fulfilment process. Honestly, you can find suppliers on your own. However, when your dropshipping completely on your own, you can end up spending a lot of time researching and negotiating suppliers to guarantee your customers’ satisfaction.
Another option is a tool like Spocket, which with a few clicks gives you access to millions of products to sell, and has dozens of features to make your life easier; like monitoring inventory levels, automatically calculated profit margins, fulfilling and tracking orders, monitoring shipping status, measuring delivery performance and a whole lot more.
Why Do People Get Into Dropshipping?
1- Easy to Get Started
It’s really fast and 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 get started, even though it’s probably smart to have one once you begin to grow.
3- No Inventory Management
You don’t have to worry about managing inventory, packing or tracking, which means you can focus almost exclusively on marketing, promotion and merchandising.
4- Easily Access to Millions of Products
You have access to millions of products instantly that suppliers are continually researching to determine what’s trending and what will sell.
5- You Set the Retail Price
So, you control the margins.
6- It is Very Easy to Scale
Dropshipping is really easy to scale because you can hire virtual assistants as your order volume increases.
Challenges Associated With Dropshipping
1- Higher Potential Competition
Because it’s really easy to get started, there’s a lot higher potential for competition. That’s why you’ll find a lot of advice out there that recommends you start off with finding a niche audience like cat lovers, or gamers. So you can operate with less competition.
2- Supplier Errors
There are supplier errors. Though uncommon, it is inevitable that a supplier will mistakenly ship the wrong product to your customer. If this happens, don’t take it personally and handle the return like a professional either order a brand new product from the supplier or offer a complete refund.
3- Shipping Times Usually Longer
Also, since many drop shipping suppliers are based in China, shipping times are generally longer, turning some customers off. ePacket it makes it easier, delivering some orders in as little as two weeks. But generally speaking, if you make your shipping times clear throughout the buying process, many visitors appreciate the clarity, especially if you’re selling an item in a niche where delivery times are a little less crucial.
How Do I Get Started Dropshipping Business?
- Start a free 14 day trial on Shopify
- Signup to Spocket app
- Find products from the Spocket app that you’d like to sell and add them to your store.
- Enable a payment gateway so you can start accepting money.
- Shopify payments is a great default option if your one of the supporting countries. Though you may want to enable a few other gateways like PayPal, Apple Pay, Amazon Payments or any of the 100+ payment gateways that Shopify was integrated with.
- Once you have all that, you’ll need to create a plan for sending traffic to your store.
- Try to produce quality content for your store. From eye-catching photography to engage in product photos to great post for your blog, your audience loves to know more about your products, and how they can be used, and the story behind them.
Additional Things To Keep In Mind
1- There Is a Learning Curve
Dropshipping is pretty easy to learn, but there is still 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, dropshipping business isn’t free. You’ll likely have to spend money to drive traffic, market your products, and handle returns.
3- There is No Overnight Success
This is not a get-rich-quick scheme. Dropshipping still requires you to work consistently for your store. True, you will need to dedicate less time compared to traditional e-commerce business, but it’s not going to succeed without your hard work. You will always need to invest time in improving your business.
4- Don’t Source Copyright Items
Most importantly don’t source copyright items; this is illegal around the world and can cause you some serious trouble. My advice, choose products from Spocket and network of trusted suppliers who make it a priority to avoid copyright infringement. That way, you can rest assured that you won’t infringe on any copyright laws and everybody remains in the legal.
Many dropshippers don’t rely on a single store for their entire income stream but operate a series of stores targeting various niches to build multiple sources of income.
If you’re completely new to dropshipping business, start small with a single product or a small handful of complementary 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 it is to start big and become overwhelmed.