What is dropshipping and how does it work?
Dropshipping is a subversive practice of e-commerce business
Dropshippers don’t keep products in stock, they are go-between the customers and suppliers. This goes on like this: customer finds the item posted by the dropshipper and orders an item online, then the dropshipper contacts the supplier and ships the item directly to the customer.
This retail fulfillment method is very suitable for entrepreneurs as you don’t have to open stores and spend a good fortune on the additional dropship services. Instead, you open a storefront, find a good wholesale supplier, and use your marketing skills to find customers online.
Advantages of dropshipping
First and the main advantage of the dropshipping is that it’s so easy to start and it doesn’t require starting funds. It’s a low-risk of e-commerce which allows many people to join the business easily. You don’t even need experience in marketing or retails, dropshipping is quite easy to understand and seize.
Disadvantages of dropshipping
There can be some disadvantages like stock shortages. As you don’t own the stocks, you can’t control them and out of sudden you may run out of dropship products. Moreover, some prices may get higher and your profit can significantly be reduced. There can also be some issues in customer service – even if you track the item customer ordered, you aren’t sure that the item will be delivered as described and shown of the picture. And delivery times can change due to many different reasons which are out of your control. That’s why the reliability of the suppliers is a crucial part.
How much money can you make with dropshipping and if it is profitable
Your profit can vary according to the items you sell and the intensity of your business.
Some successful dropshippers remember their first year and usually, the profit through the whole year was on average 15,000$-17,000. Some of the amateur dropshippers managed to gain even up to 40,000$. But you have to keep in mind even it sounds easy, you have to perform well. Remember, the phenomenon of luck is not viable and it’s the hard work that makes things work.
How I can be successful at dropshipping
To be successful in dropshipping, first, you have to find your niche. You should do the full competition research and find out what’s selling best or which kind of marketing tricks do go on your niche. Then you have to find a reliable dropship supplier – we suggest you find one with many good reviews and proofs. And, the last but not the least, you have to write down the concrete plan of your business – dos and don’ts, your expectations and goals.
As there are many benefits of dropshipping that may sound amusing, you should stay laser-focused and keep an eye on new trends, successful dropshipping websites, and sellers. Try to use other people’s experience but always have a backup plan that will allow you to modify your business in case of unforeseen circumstances.