Dropshipping Business:- Dropshipping is very popular topic these days it is revolutionary method of online business. Dropshipping is an online retail business where seller does not keep the inventory and products stock. When the seller got the order of the product, he purchase product directly from the manufacturer or wholesaler and shipped it to the customer. This article is dedicated towards details of dropshipphing business. If you want to earn quick money by Dropshipping business, then this article is just meant for you.
What is Dropshipping Business?
Dropshipping is a online retail business in which the store owner or dropshippers does not keep the stock of the products they sell on their website. When a customer places an order of certain product listed on dropshipping website, the website owner or dropshipper purchases that particular product from item third-party supplier or wholesaler and shipped it directly to the customer. In other words, the seller works as a connection between the customer and the supplier. Dropshipper handles the marketing and sales strategies while the inventory management and shipping responsibilities are handled by the supplier. In this process, the seller never physically handles the products.
How Dropshipping Business Works?
The owner or seller on dropshipping website is known as dropshipper. The mode of operation of dropshipping website is very easy; here we are sharing working procedure of dropshipping business in few steps.
- Dropshipping business works on the same principle of e-commerce websites
- Firstly Customer places an order on the seller’s dropshipping online store or website.
- The seller or dropshipper forwards that order and details of customer to the supplier or wholesaler of the product.
- Now the supplier packages the product and ships that product directly to the customer.
- The dropshipper pays the wholesale price of the product to the supplier. He keeps the difference of wholesale and retail as his/her profit.
- Dropshipper buys the product on lower wholesale price and sells that product in retail on higher price. In this way dropshipper earns a good amount 0f profit on every product sales.
Importance of Dropshipping Business
Dropshipping business is very profitable as you dont have to maintain inventory, stock of products and shipping infrastructre.
- Low Investment Startup: Dropshipping is low investment business because you don’t have to invest in inventory and stocks therefore the initial costs are on lower side as compared to traditional retail businesses where you have to maintain your own product inventory.
- Easy to Start: Setting up an online dropshipping store and finding suppliers and wholesellers is easy because of internet. You can start your online dropshiping business by creating an e-commerce platform on internet, you can also select from wide variety of suppliers and wholeseller available on internet as well.
- Wide Product Range: Dropshipping business allows you to offer a wide range of products to your customers or buyers without worrying about the issues of storage and inventory. Because shipping, inventory and stock all are managed by the suppliers.
- Flexible: You can run a dropshipping business from anywhere in the world with just an internet connection. This makes dropshipping a great option for digital marketers or remote entrepreneurs.
- Very Low Risk: You don’t have to invest in inventory in this online dropshipping business therefore you never get stuck in headache of managing unsold products or financial losses.
Features and Benefits offered by Dropshipping Business
- Ease of Business Operation: Dropshipping offers you freedom to test and add new products in product listing of your online shopping store without any significant financial risks.
- Scalability: Dropshipping offers scalability to you business. when your business grows you don’t have to wrry about expanding warehouse space, inventory, shipping or managing logistics because all these management will be handled by your suppliers.
- Focus on Marketing and Sales: With less time spent on inventory management, you can concentrate on better marketing and promotion of your products. It allows you to practise more user oriented work by improving customer experience.
- Global Customer Base: As we know that dropshipping is based on internet which allows you to reach customers of all over the world without setting up physical stores in different geo-locations. You can get orders from all over the world, this will helps you in expanding business, thus generating more revenue
- Dropshipping on Online Marketplace– Dropshipping also allow you to sell your products on popular market-places like Amazon, eBay, Dubizzle, Etsy etc. Selling products on marketplace means more options of generating profits.
Advantages and Disadvantages of Dropshipping Business
Everything has its own pros and cons, advantages and challenges. Dropshipping business also has pros and cons, we are discussing advantages and disadvantages of dropshipping below.
Pros of Dropshipping Business
- Very low investment is required for starting up dropshipping business
- Very low risk financial loss in case of business failure
- Easy to get started
- Very little technical knowledge is required for business operation.
- Wide range of products
- New products are easily available for testing.
- Independence to work at location as long as internet is available and flexible working hours.
- Ease of Scalability without any additional requirement of warehouse space or inventory management.
Cons of Dropshipping Business
- Reliability on third party supplier for business is the biggest challenge of dropshipping. All your business depends on product availability from supplier.
- Dropshipping depends on internet. If you don’t have internet, it is impossible to get any orders.
- Less control over shipping, customer service support and fulfilment process, thus providing bad experience to consumers
- Competition is very high in this business area of dropshipping.
- Low profit margins
- Products quality issues
How to Earn Quick Money by Dropshipping
Dropshipping business is very popular nowadays because of its accessibility, scalability, ease of management and low investment. Many people are running their dropping businesses successfully. If you want to earn money without investing much, then dropshipping is best available option for you. All you need is domain, website hosting plan and basic technical knowledge. This business will helps to earn you good amount of money without any location barriers, you can also work from your home. We advise you to start your own dropshipping business; here we are mentioning step by step procedure to start an online dropshipping store.
How to Start a Dropshipping Business?
- Choose a Perfect Niche: First of all you have to choose your niche. You should select niche after researching on internet.We would advise you to choose the niche in which you have your own interest, which excites you and which is trending in the market.
- Market Research: You have to analyze your competitors and target audience very closely to identify which products fits best. This will help you to plan marketing strategy and product selection.
- Now Create an Online Store: After selecting niche and market research you should set up you online dropshipping store. You can use online e-commerce platform plugins like shopify, woocommerce, bigcommerce etc toSet up your online store. WooCommerce, or BigCommerce.
- Find Reliable Suppliers: After setting up online store you should look for reputable & trusted suppliers or wholesalers who are offering dropshipping services. Check their product quality, packaging, shipping time duration, policies, service support etc and finalise the products.
- Integrate Products: Now import the products you want to sell, and display them on your dropshipping store. After setting up the competitive price publish the products for sale on your dropshipping portal.
- Marketing and Customer Acquisition: Implement powerful marketing & promotion strategies to attract organic user traffic to your store and convert visitors into customers.
- Manage Customer Service Support: You have to provide excellent customer support for successfull and profitable business operations. You should manage your customer’s inquiries, returns, refunds and other issues on top most priority.
- Monitor and Optimize: Tracking your performance, sales figures, and customer feedback will helps you to make data-driven improvements and profitable business strategies.
Process to Create an Online Dropshipping Store
Creating a dropshipping store only require some basic technical knowledge and you are all set to rocks!
Here we are sharing how to create an online dropshipping store in step by step procedure.
- First of all you have to select your preferred e-commerce platform. There are many e-commerce platform like Shopify, woocommerce etc, who are providing online dropshipping store services.
- Now Create an account on your selected e-commerce platform. You have to enter you basic information like name, age, date of birth, business name etc.
- Fill all the required details very carefully.
- Now choose the theme of your dropshipping store from the available variety of themes. We advise you to select theme that perfectly fits with your product categories and your brand name.
- Now customize your store for better visual & asthetic appeal. You can customize your store by adding your brand logo, creating product categories, setting up your navigation, and add necessary pages like About Us, Contact Us, etc.
- Integrate your dropshipping store with suppliers. For example AliExpress, AliBaba etc.
- Now display products on your dropshipping portal with price, product descriptions, and transparent shipping and warranty rules.
- Press Publish or go live button to show your products to the whole world.
- We advise you to keep seamless checkout and payment process for better customer experience
Conclusion
Dropshipping is still in its developing phase, if you want to start a dropshipping store than this is the perfect time for you. We hope this article helps you to get all the important details of dropshipping business. Visit our website for more digital marketing related blogs.