Dropshipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer.
The main concept of dropshipping is selling products you don’t actually own.
Working with dropship partners is not only a product acquisition model, but also includes product fulfillment. The process works by taking orders from your online business and forwarding them to your supplier/dropship partner. They in return, ship the product to your customer on behalf of your company.
The key to making money with drop shipping is making a profit on the price difference between what you charge and what your dropshipping partners charge you.
The biggest benefit to dropshipping is the ability to offer a large selection of product without purchasing inventory upfront and managing that inventory. Dropshipping can also be a great tool to help diversify your inventory and test products since it's just a matter of adding the new product to your store.
When going with a dropshipping business model, you can either work directly with manufacturers (who offer dropshipping) by contacting them directly or you can work with a dropship aggregator. An aggregator works with hundreds of manufacturers and makes it easy to sell thousands of types of products without the need yourself to maintain relationships with each individual manufacturer.
Your profit is the difference between what you charged the customer and the price the dropshipper charges you. Typically with dropshipping your profit margins are slim, around 40%.
Keep in mind, that although these aggregators make it easier to sell a variety of products, they take a cut of your dropshipping margins. Additionally, many will make you pay a yearly “membership” or “sign up” fee.
Dropshipping is by nature, the cheapest option to get started. Therefore, dropshipping is for people that would prefer to keep startup costs as low as possible and people who diversify but have no time. Dropshipping is also a great option for someone that doesn’t want to hold and manage inventory.
Benefits of Starting A Dropshipping Business
- Low Startup Costs - The biggest advantage of dropshipping is the low startup costs. You can successfully start the business with about $80 or N35,000(NGN). Your Dropship store can successfully be operated with your mobile phone.
- Low Risk - Since you don’t actually purchase your inventory upfront you aren’t taking the risk of having items you can’t sell.
- Streamline Sales - Dropship partners will take on the tasks of picking, packing and shipping your product for you. The dropship option provide convenience and efficiency, so you can manage your business from anywhere in the world.
Some of the challenges one can encounter in the business are:
- High Competition - Because dropshipping has such low barriers to entry, you can bet that a lot of people are doing it. 'Any, only few people know about Dropshipping for now'. To overcome this, make research and find out the amount other people are selling the same product, then add your profit margin in a way that the price will beat competition.
- Inventory Out of Stock - One of the other major disadvantages of dropshipping is backordering. Because you’re relying on someone else’s inventory, the occasion may arise where you place a shipment request to the wholesaler, but the product is sold out.
Some comapies will setup your Dropshipping Store for you at a minimum cost. But a lot of fraudlent persons are out there defluading unsuspecting people even with the name of a well know brand, especially AliExpress and Shopify.
This is one of the most lucrative business anyone can do. You can be an owner of a Dropship store even without lifting a finger and, you will be making massive profit daily.
You can get my complete guide(E-book) on Dropship Business and leverage on my experience in the business to make a successful Dropshipping Business capable of generating N200,000(NGN) or $600 in monthly profit.
The book cost N3,000(NGN) or $12 only.
Information contained in the book include:
- how to successfully run the business from any country you resides.
- how to start the business with less than N35,000(NGN) or $90.
- how to make a monthly profit of up to N200,000(NGN) or $600.
- lists of legit Dropship aggregators or partners and how to get them to set up your own store in no time.
- how to spot fraud in the business.
- free E-book on AliExpress Dropshipping Store setup.
- and every micro details about Dropshipping Business.
In addition, I will also get assist you in starting the business successfully.
For payment details and further enquiries contact:
Phone: +2348035217265
Email:
dillionworldblog@gmail.com
customercare.dillionworld@gmail.com
