You may have come across many businesses online and offline. But, dropshipping is certainly something that can generate a lot of money working online but only in the case, if you do it right. Business is not all about luck or opportunity, it demands more attention than a life partner to be successful that is why it earns you a lot more than a job. If currently, you’re doing a job. Then you really need to acknowledge this.
I am sure reading the above quote, you have already made up your mind to do business. But, it is not as easy as it sounds. As I said above, it requires real attention. So let’s come back to our topic, Dropshipping!
What is Dropshipping?
It is an online e-commerce business where the merchant owner doesn’t keep the products he sells in stock. Rather, he just takes orders online with a little margin from a customer by showing him products and buys the same product from a 3rd party and put his customer shipping address in it.
The main difference between dropshipping and standard retail is, your store doesn’t have any stock or inventory. Rather, the merchant purchases inventory as needed from a 3rd-party – Normally, a wholesaler or product manufacturer.
Who can start the Dropshipping Business?
Like any other business, drop shipping also requires true dedication. If you’re expecting 5 figure income in 5 weeks of part-time work then you’re going to be extremely disappointed. You need two investments to start, that is money and time. To be more specific, a person should:
- Have at least $50 to $70 to set up a platform.
- Have basic knowledge of how online e-commerce stores work
- Know how to advertise a product with the cheapest plus effective method.
How Does Dropshipping Work?
Have you ever purchased something online from Amazon or eBay? You saw a product and ordered it quickly. Just like that, you will have your own store like Amazon or eBay. But, you will not have any inventory or stock. When a customer orders a product listed on your store by you with a little price margin. You receive the order and ask your supplier to deliver the product to your customer’s address.
Below is the illustration of how dropshipping works, so you can have a better idea.
It is an extremely remunerative business opportunity for entrepreneurs. Anyone having a little or no investment can easily start the drop shipping business online by creating a store that shows different products from all over the world and can have hundreds of dissimilar products of customers choice. It’s still worth a try to start in 2019.
Here’s the list of benefits of running a dropshipping business:
- It has no barrier to entry. Anyone having little or no money can take part in.
- You will not pay any upfront for products you sell. But, hosting and domain charges are essential.
- Very low risk of any kind of loss because you don’t own any inventory.
- If a product is not selling, no problem. You can replace it with a better one.
- You can also publish your own products to get more profits.
- If you don’t get it running after trying everything. Then quitting option is also free of cost.
In the next post, I’ll explain how to start a drop shipping business with the cheapest and effective way