What is Drop Shipping?
What is Drop shipping? Today, we’re going to talk about Dropshipping, what it is, and how you can get started. I’ll also give you some actionable steps to start your own dropshipping business today. We’ll be discussing the various elements of what goes into starting, operating, and growing your own dropshipping business.
If you’ve been looking for way to start an online business, but you don’t know where to start. Drop Shipping is a viable way of starting an online business. With drop shipping you have full control in scale and what you would like to sell. Let’s say you don’t know what you should sell. You don’t have the money to invest in products, and looking around. You don’t have any place to store inventory.
That’s what dropshipping is all about. You see, with dropshipping, you can sell stuff online without the products ever being in your hands. All you need is a computer, an online store, and a basic understanding on how to market and sell online.
What is a Drop Shipping Business?
Here’s how it works. First, you find what you want to sell from a supplier then list that product on your own website at a price you set. Promote your products and when someone places an order for that product, they pay the retail price, and you make a profit.
Once your customer make a purchase, you’ll place the order with your supplier. The order is place at their wholesale price. Finally the wholesaler ships directly to the customer. So, let’s say you’ve found this watch on a supplier’s website for $10. You would then list it on your own website for $30. When the order comes in through your website, you then place your order with your supplier using your customer’s shipping information, keep the $20 profit. Have the product shipped directly to your customer from the Wholesaler.
That’s it! You’re probably thinking, why wouldn’t somebody just order the watch directly from the supplier’s website? There are a few reasons for why not. First, it’s a very big internet and customers may not know about the supplier to buy from them directly. Second, when people buy things, they’re not just buying products. They’re buying into the marketing, positioning, trust, brand and lifestyle.
With dropshipping, you can focus on marketing your products and saying the right things. This is called brand awareness. By build brand trust people are more willing to spend their money with you. And providing real value to the right people because you’re not warehousing inventory.
Is Dropshipping worth it?
There are challenges with drop Shipping. You must know you will have to take on those challenges like any other business. Now, a couple of big challenges that need to be considered are, finding credible suppliers with good quality products. Your reputation is on the line so it is imperative that you vet all suppliers. Don’t rush products to market without doing proper research. Make sure you have visibility into your customer’s fulfillment process.
However, if you dropship completely on your own, you can end up spending a lot of time researching and negotiating with suppliers to ensure your customers’ satisfaction.
You might try Oberlo, which lets you connect with millions of products, and dozens of other features that make things easier… Monitoring inventory levels, automatically calculating profit margins, filling orders, tracking shipping status, and measuring delivery performance, among others.
With Oberlo Supply, you get to partner with vetted, trustworthy suppliers offering great quality products, faster shipping times, and awesome customer service with thousands of different products available for you to choose from.
Drop Shipping Process
You can get started by starting a Shopify store, installing Oberlo, and finding and selling products online. People get into dropshipping for several reasons, namely the fact that it’s fast and easy to begin and the fact that the investment costs are really low.
You also don’t have to have an established business entity, though it’s wise to have one once your business grows. You don’t have to worry about managing inventory, packing or tracking, which means you can focus almost exclusively on marketing, promotion and merchandising.
Millions of products are available instantly, and suppliers are constantly researching to determine what’s trendy and what sells. With dropshipping, you control the margins because you set the retail price. And the extra volume of orders you receive calls for virtual assistants.
But there are some drawbacks to dropshipping as well: Firstly, because it’s so easy to start, there’s a higher chance of competition. It is for this reason that you will often find advice that recommends finding niche audiences – such as cat and game lovers and gamers – so that you can enter the market with less competition.
In addition, there are supplier errors. Although unlikely, a supplier is bound to ship the wrong item to your customer on occasion. If this occurs, don’t take it personally and deal with the return as a professional – either offer a refund or order a brand new item from the supplier.
Moreover, since many dropshipping suppliers are located in China, shipping times are usually longer, which turns some consumers off. So make sure to handle and issues like a professional. What does it take to get started ?
The 1. step would be to start a free 14 day trial on Shopify.com Step 2. Install the Oberlo app on Shopify.com Step 3. Find products within the app you’d like to sell and add them to your store. Step 4. Go to the payment gateway and enable it to start accepting money. Although Shopify Payments is a great default option, you may wish to enable other gateways like Paypal, Apple Pay, Amazon Payments or any of the other 100+ payment gateways Shopify works with.
What is a Drop Shipping Business?
When you have all that, you will need to put together a marketing strategy to drive traffic to your ecommerce site. I won’t go over that here, but you can read more about traffic generation by following the link. Lastly, try developing quality content for your store. From eye-catching photography and product videos to engaging blog posts. Your audience wants to learn more about your products, how to use them, and the story behind them.
We’ve gone over all the things you need to know to get started, but here are a few more things to keep in mind. Dropshipping is fairly straightforward, but there is a learning curve, and you will encounter challenges along the way.
There are plenty of people out there making a lot of money dropshipping items, so mistakes can serve as learning opportunities if you have resilience along the way. The capital investment difference between dropshipping and traditional e-commerce is significant, however dropshipping is not free.
No Overnight Success
There’s no overnight success in this business, and it’s not a get rich quick scheme. You’ll need to spend money to drive traffic and promote your product. Even though dropshipping does not require you to work consistently for your business, you still need to do work consistently for your store.
Investing time in the business isn’t just about generating sales. Investing time into the business is the key to success. I recommend choosing products from Oberlo Supply instead since they have a network of trusted suppliers who do everything to avoid copyright infringements.
As a result, you can be sure that you’re not breaking any copyright laws. If you’re brand new to dropshipping, start with a single product or a small group of complementary products from a single supplier. I suggest starting small and building inventory rather than starting big and becoming overwhelmed. And finally, once you feel comfortable with dropshipping, diversify.
Several dropshippers operate their own stores by targeting different niches to build multiple sources of income rather than relying on a single store.