What is Dropshipping?
Dropshipping is an eCommerce business model that Customer places the order and pays the retail price to Retailer (you), Retailer forwards the order details to Supplier and pay the wholesale price. And then Supplier ships the products directly from their warehouse to the Customer. Profits come from the difference between the retail price and wholesale price. No need to carry inventory, low risk, less investment. You can run a dropshipping business online from anywhere in the world and sell worldwide.
What are the benefits of dropshipping?
1. Less Capital Is Required
2. No Inventory, Easy to Get Started & Low Overhead
3. Location Independence & Wider Product Selection
4. No shipping & You buy wholesale and sell retail
What are the disadvantages of dropshipping?
1. Inventory Issues
With no inventory, investment and cost, you will find many competitors doing the same.
2. Supplier Errors
If the supplier doesn't ship on time, the customer is gonna scream at you, not at the supplier.
3. Shipping & packaging error
A consignment, if not packaged well and handled with care, leads to high returns. And high returns rate is detrimental to any business etc..
How to Start Dropshipping Business?
1. Prepare two cards for payment and collection.
2. Select the sales channel and sign up a store to dropship.
You can dropship to many sales channels, such as Shopify, WooCommerce, eBay, etc. If you want to reduce running fees and self-hosted on your domain, the WooCommerce will be suitable for you. Shopify, a popular eCommerce platform, that enables you to create your own site too, but unable to create your own domain. For eBay, obviously, you can get traffics from it.
3. Select the most profitable dropshipping products from reliable dropshipping suppliers.
This is one of the most key factors and depends on how many sales you can get. Also, it’s a difficult thing for beginners. Here is a guide to find winning products from AliExpress for you if you are going to dropship from Aliexpress
4. Import products to your store
Import the product content and images from suppliers to your store. You can use our tool ShopMaster to import and publish in bulk, which streamlines and optimize your workflow.
5. Market the products to get traffics
Post your products to social media such as Facebook, Youtube, Instagram, etc. to get traffics to your store