First Things to Know Before Starting dropshipping Business

Posted By: Selina Lau, Published: 31/03/2019 Times Read: 231 Comments: 0

First Things to Know Before Starting dropshipping Business


Difficult to go to the top? Reluctant to hit the bottom? dropshipping lets you become a middleman so you can connect dropship suppliers to your customers and make everyone happy - especially you. But how effective is it? Is it profitable? In this article, we'll discuss how to use dropship and whether the pattern is right for you.


What is dropshipping?

Let us first solve the problem of "What is dropshipping?"


In short, dropshippers coordinate product sales and delivery between manufacturers and customers. For e-commerce, you first work with one or more dropship vendors and then sell their products in your online store.


Dropshippers do not have any actual inventory to manage - their sole responsibility is to sell other people's products on their website and share the share of the purchase. The dropship supplier will be responsible for the rest of the work.


Because most suppliers are not household names, they are happy to provide you cutdown to get additional exposure opportunities. Dropshippers receive special discounts and sufficient commissions for “assist” sales so they can use this business as their primary source of revenue...depending on their sales.


Is dropshipping profitable?

The main responsibility of Dropshippers is marketing. Their job is to sell the products of little-known manufacturers to the public. If the manufacturer is well known or has been established, then they do not need an intermediary first and may not participate.


How much profit you will earn depends on how well you know about e-commerce. For example, it's not as easy as opening a store and populating someone else's product. If you want to make healthy profits, you need to use e-commerce design best practices (especially checkout) to build your website, use large social networks to attract shoppers, and use e-commerce analytics to constantly sharpen and optimize your Design choices. These digital marketing services are basically the fees paid by the dropship provider for you.


Dropshippers earn more money when you have reliable traffic; however, you can always build your community from scratch. The most important part is the foundation of the application of e-commerce: social media / digital content marketing, online store design and e-commerce analysis.


dropshipping Business Advantages and Disadvantages

If you think that selling other people's products sounds easy to make money, then think again. The direct sales business has many advantages, of course, it also has its fair disadvantage. Please check the list below to see if it is right for you.



The smallest initial investment. Starting your own dropshipping business requires very little startup - but the cost of designing and hosting your site is quite high. You do not have to pay for manufacturing, shipping or housing stock.

Low overhead. Once your store is up and running, you still have to pay a low fee. You can even work in your home office to save even more money.

Easy to manage. Since the distribution provider handles the logistics of transportation and inventory, you can focus all your energy on improving the site itself.

Flexible. Most of your work is digital, so you can make money from anywhere in the world and choose your own working hours.

A wide range of products. Since dropshippers are not physically in contact with the product, they are free to offer a wider product line. This has great potential for specializing online stores (for example: Cellphone Protective Cases & Covers ) or for presenting an integrated department store style.

Product experiments are risk free. With a wide range of products, shop owners can try new or unverified products. Because you didn't lose money by flop, the risk is small; your only loss is the screen space used to advertise the product.



Low profit margins. Not much is earned per sale is the other side of the "low overhead" coin. You may not invest too much money in your business, but you won't spend too much on each sale. That's why you need a lot of sales to keep yourself.

Sell unfamiliar products. Selling the products in your hands is much easier than the products you see in the pictures. But this is not always a problem; you are free to choose the products you sell and the products that are not sold.

Complex transportation problems. Most dropshippers sell products from multiple vendors. If a single customer purchases products from different suppliers in the same order, the shipping costs will vary. You have two options: buy extra shipping yourself to ensure customer satisfaction, or pass extra fees and manually calculate the total price.

Delayed updates. The degree of separation between you and the dropship vendor means an extra step that can delay the update. For example, if an item is out of stock, you may not receive a notification until the customer attempts to purchase it.

Supplier reliability. Like any business enterprise, you must be careful about who you work with. Some suppliers are more reliable than others. So, if you choose the wrong ones, you will have headache of explaining to your customers why their goods are late.

Tags: dropshipping, phone cases


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