What is Dropshipping ?

What is Dropshipping? An Introductory Guide to Developing a Profitable Online Business

Dropshipping, in today's online world is quickly becoming one of the cheapest ways to start an online business. But what is dropshipping, and how does it all work?

What is Dropshipping?

In simple terms, dropshipping is a type of retail business, where the seller does not keep products in stock. More specifically, a dropshipping seller sells a product to a customer, and the seller gets the product from a third party supplier, who is then responsible to send that product to the customer. In the end, the seller is never in physical possession of the product, nor does he/she ever touch the product at any point.

The Dropshipping Process:

1. You launch an online store using a platform like Shopify or WooCommerce.

2.

The Dropshipping Process:

1. You launch an online store using a platform like Shopify or WooCommerce.

2. You find products from suppliers (like AliExpress or CJ Dropshipping) and list them on your store.

3. A customer places an order on your website and pays you the retail price.

4. You submit the customer's order to the supplier and pay them the wholesale price.

5. The supplier sends the product directly to your customer.

6. You keep the profit (the retail price minus the wholesale price).

Benefits of Dropshipping:

Low startup capital: You don't buy inventory.

Flexibility: You can run your business wherever you have an internet connection.

Scalability: You can add new products with no storage to manage.

Lower risk: You are only paying for the goods after you sell them.

Things to Think About:

Low profit margins due to competitive landscape

Much more difficult to try to control shipping times, you are reliant on a 3rd party

You have less control overall of product quality and delivery times

Tips for Success in Dropshipping:

Find and select a niche that has some demand and low competition

Be customer service oriented and reliable to build trust

Choose reliable suppliers and do the research

Spend those marketing $$$ on digital [facebook ads optimal - early].

Build a brand and attractive, professional looking website.

Is Dropshipping the Way for You?

If you want to start an online business without a lot of risk, dropshipping is a good way to go. It requires a lot of work and strategy, but if you do it right, it can be a profitable and sustainable way to make money.

Conclusion

Dropshipping is an astute way to build an online business without financial liability, and offers convenience, flexibility, and the ability to create a globally recognized brand, despite not holding the inventory. But you won’t find success overnight in dropshipping. It will take effort, and proper selection of products, suppliers, and customer service. You can turn dropshipping into your gateway to financial freedom in a new digital economy if you are willing to do the work.