Dropshipping! What is it and How Does It Work?

Dropshipping is one of the easiest businesses to start. You can launch a full-time or part-time dropshipping from home. It sets you free from inventory management.

As a dropshipping business, you only need to generate a sale and send that order to the supplier. The supplier handles inventory and delivery. This way the business owner can focus more on marketing and branding.

The best thing about dropshipping is that you do not need to own the product. For example; Uber does not own any cars, and Airbnb owns no hotels.

What Is Dropshipping And How Does It Work?

According to Amazon, dropshipping serves as the middleman, where you sell products to customers without managing inventory.

Various companies like Amazon and Shopify offer complete functionality from supplier connections to logistics tools.

It is the reason most of the dropshipping businesses are running on these two platforms.

Even if you are a newbie, this guide helps you to launch your dropshipping business.

What is DropShipping?

Dropshipping is a way of running an online store where a third party handles the inventory.

Your job is to find customers, generate sales, and send orders to the suppliers. It is a lucrative business with growth opportunities.

According to Statista, the value of Dropshipping will grow to $476.1 billion by 2026.

Instead of buying stock and selling it to customers, you use business connections.

• Choose from a range of products from available suppliers to sell to your customers.
• Set the markup. And you make the sales. Then, logistics companies pick up the products from your suppliers and ship them to your customers.
• Never see the stock as it is never in your possession.
• Don't pay for inventory management.

How Does Dropshipping Works?

Dropshipping businesses start when sellers connect with suppliers to sell products to the customers.

Here is the process to start a dropshipping business.

1. Agreement: The dropshipper and seller sign a contract to run the business efficiently.
2. Platform: Sellers display products on Shopify or Amazon. Customers place orders on the eCommerce website.
3. Order from Seller to Dropshipper: Seller sends the order to the dropshipper, and then the dropshipper sends the order to the customer.
4. Customer receives order: Order delivered at customer's address.

There is an exception to the 3rd point. In some cases, the seller itself sends the order to the customer's address.

Benefits of Dropshipping:

Low Maintenance Cost:

Dropshipping starts with a minimum cost. You save yourself from inventory management costs. You do not need a store to stock products. It is the best business idea for small businesses. All you need is to invest time to best your competition.

Trending Products:

Dropshipping is an ideal way to sell trending products. It is easier to manage multiple products and change the product catalog whenever you want. For example, during the holiday season you can sell travel tickets, but the rest of the year you have been selling travel bags.

Zero Product Cost:

You save yourself from heavy product research and development costs. You can use that money and resources on marketing and brand building.

Easy to Start:

Dropshipping is free from traditional eCommerce hurdles. You can start your own dropshipping eCommerce business without inventory, warehouse, shipping, tracking, and shipments. All you need is to establish customer satisfaction with marketing.

Test and Scale:

You can scale your dropshipping business on multiple platforms. It is easier to scale your eCommerce business with Amazon, Etsy, eBay, and Shopify.

Can I Make Money through Dropshipping?

Yes. Dropshipping is a profitable business model. It is best for small businesses. Dropshipping is not as profitable as eCommerce.

Yet it is a low-risk business where you do not need to own products.To make money with dropshipping, you need to choose the right niche, find the best suppliers, market your store, and ensure timely delivery.

Dropshipping Community:

Reddit's r/dropshipping community is the best place for beginners. It is the community of people engaging in dropshipping business. You can ask questions, get reviews, and find out the ways to promote your dropshipping business.

Benefits of Reddit's r/dropshipping community:

• Expert Tips
• List of best dropshipping products
• Product reviews
• Dropshipping platform and marketing tips.
• CJ Dropshipping tips
• Alibaba Dropshipping tips
• List of best dropshipping suppliers.
  

Conclusion:

Dropshipping allows you to provide products to your customers without ever having to buy stock.

You connect your customers to the suppliers, and the entire process is facilitated for you.

It is an easy way to better serve your customers without laying out funds you don't have.

Stay tuned with us to for more updates.

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Best Dropshipping Tips for Newbies

The ecommerce game is a tough one, and the owner who have an online store can now just enjoy the newest business model for their shop: dropshipping. And it’s understandable, since dropship stores are low cost, give a lower risk and are the beginner’s new friend.

According to Google Trends, the interest in dropshipping has got up to 89% and we’re talking about companies such as Doba and Dropship Direct

Best Dropshipping Tips for Newbies: Easkme

The dropshipping apps will do nothing but help you in the dropshipping process and in delivering the best products. Dropship on Demand has by far the best tools to help you build your ecommerce business in no time.

There are some things you should know before opening your first online store. You’ll find the best tips on how to manage the dropshipping game.

Choose a niche

It’s best to go for a narrow niche when it comes to your first online store, just like Amazon did. If your story is too general, it would be harder to attract clients and to build your brand – remember that this is the key to site trust.

Ask yourself what you’re passionate about, then do some digging to find out the trends of the industry. Then think about the targeted audience. After, you’ll need to look at the demand and competition.

Find out who’s the best supplier

Remember that what you sell represents you. These next two steps show you how to pick the right supplier:

Make a list of suppliers. Check all the details that you have about the suppliers, including the products and their reviews. This way, you’ll make sure they’re credible,and the products are full of quality.

Take a look at the list again and narrow it down, by comparing the prices and guarantees. Also, see if they include epacket services.

Your website is your image

Dropshipping is known for cutting low the costs, but your website should still be the best on the internet. It takes a lot of time to build up customer experience – it’s easier to do it when you invest a bit in your home page, for example. If your store is optimized properly for both customers and SEO, things are already different.

Also, make sure that the description of the products has quality, not quantity and that it has no errors in spelling. The pictures should also have a good quality and your shipping and returns policies are crystal clear, for everyone to understand.

It’s best to do take a look again at the competition since you could also find inspiration for your own website. There are e-commerce Facebook groups full of people who are there to give you the best tips and help you at all times, especially if you’re new to the business.

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