Using this model, you can multiply your usual monthly income by several dozen times. Let's figure out what dropshipping is in more detail.
The essence of dropshipping is that the seller (You) acts as a link between the supplier and the buyer. The intermediary creates an online store, enters into a contract with the manufacturer and sells the selected products. They earn in this case at a margin. For example, the wholesale cost of a product is $ 25, and you sell it for $70-80.
An important feature of the scheme is that the products are sent directly from the wholesaler to the buyer. Thanks to this, you will not have to spend money on purchasing, renting premises, hiring employees, packaging.
In order to do dropshipping, you just need to find a good and high-quality wholesaler (as a rule, searches take place on the well-known AliExpress), choose an e-commerce platform and launch sales. You will also need a relatively small contribution. This moment disappoints many, but it should be remembered that it is possible to start a successful business from scratch only in fairy tales.
Summarizing, it is worth highlighting the main advantages of dropshipping:
- The minimum number of worries for both the seller (you) and the supplier.
- The possibility of a quick and rapid start.
- The amount of the margin is set by you.
- There is no need to rent a warehouse, hire employees, deal with transportation and packaging issues, which means no additional expenses.
- All you need is network access and a laptop.
- The ability to launch several sites with completely different products.
- No risk associated with the downtime of the goods in the warehouse.
How much can you earn on dropshipping?
It all depends on which markets the seller is targeting. If sales are concentrated in the USA and Western Europe, you can earn income from 15,000$ per month. In Ukraine and CIS countries, the figure is 2,000-3,000 $ per month.
How to find a supplier for dropshipping
The key to the success of a dropshipping business is high-quality and responsible suppliers for an online store. The logical question is where they live and how to look for them. We have several alternatives for you:
- In the search bar ― enter a keyword (for example, "clothes”, "toys") and add the magic phrase "buy in bulk”, "from the manufacturer” and so on.
- At fairs, forums, conferences, manufacturers often organize such meetings, where they present their goods and talk about the terms of cooperation.
- Through competitors ― on the website of online stores, look carefully at the photos of products and tags, there you will find the name of the wholesaler.
- In the catalogues of suppliers, manufacturers are just as interested in selling products as dropshippers. They create online catalogs where you can evaluate their products.
- Local producers are advantageous because their warehouses are relatively close to the buyer. As a result, the goods are delivered very quickly.
- Through joint procurement services, these are sites where several sellers can place a joint order.
Choose your own option and you will be happy.
You can create an online store for dropshipping using site designers or open source platforms. The choice depends on how well you understand the technical part.
|You choose hosting for an online shop||The site provides a host|
|Minimum space for store personalization||The ability to completely make a shop for yourself|
|Plugins and modules for new functions are added manually||There are a certain number of themes and visuals|
|Suitable for personal and business purposes||There are several plans to choose from on paid platforms|
|A large team of employees and users||The size of technical support may be limited (not in all cases)|
|The user can fully control the site||Fast business startup, without full control of the platform|
Make a list of all the pros and cons and then you will understand what will be the best option in your case.
A successful online business is impossible without a dropshipping platform. To launch a store, you need an e-commerce platform where, in simple words, customers will see your product and pay for it. The most popular options include:
- Amazon is a well-known service for selling goods. Dropshipping is a very popular practice on Amazon. There is a lot of information about the promotion of the store here, so everyone will be able to master the features of the process.
- eBay is one of the largest platforms in the online sales market. Of the advantages ― a huge number of buyers, and, therefore, high chances to increase profits. Of the disadvantages - a lot of limitations.
- Shopify is probably one of the coolest sites. Lots of personalization tools and cool chips.
The best places to purchase goods will be the well-known Alibaba and Aliexpress. Each of the services has certain features that should be taken into account before starting work. By choosing the optimal platform for your case, you will be able to quickly launch sales and receive good feedback from customers.
Dropshipping on Amazon
Dropshipping on Amazon has a number of features. Their study should be given time and effort, because if the rules of the service are violated, the account will simply be blocked. It is worth emphasizing that Amazon is not only a huge sales market, but also a huge competition. You will have to fight for customers.
One of the recent innovations is that your name should be indicated on the packaging, leaflets and goods that the customer receives. The name of the manufacturer or supplier is not mentioned. Also, the seller is not responsible for refunds ― the wholesaler does this.
Also, you can not buy goods from other online stores and specify the delivery address of your client. Firstly, the buyer receives products with the logo of another company, which confuses him. Secondly, the European Personal Data protection policy is violated in this way. That is, it is allowed to sell goods only directly from the manufacturer.
Although dropshipping is an acceptable activity for Amazon, there are a number of restrictions. If you decide to use this particular e-commerce platform, learn their policies so as not to break the rules.
Dropshipping on eBay
On eBay, as well as on Amazon, restrictions have been introduced prohibiting direct deliveries from another trading platform to your buyer. It almost killed dropshipping on the platform. If earlier the resale of products from Aliexpress (which is the main source of suppliers) and other similar platforms flourished, now their percentage has decreased much. Roughly speaking, only products from the manufacturer can be displayed on eBay. Of course, there are methods that help to "circumvent" the rules, but they create unnecessary problems for the seller. Comparing eBay with, for example, Shopify, the first service loses by a large margin.
eBay's policy can be understood: dropshippers resold relatively inexpensive goods from Amazon or Walmart with multiple margins. Users of the site received a cheap, low-quality item with the logo of a completely different store. This state of affairs did not reflect well on the reputation of the service, so we had to take measures. By the way, the new rules have greatly reduced Amazon's income.
In summary, it is worth emphasizing that it is definitely a bad idea to engage in dropshipping on eBay for novice sellers without experience. This is exactly the case when it is better to look for easy ways.
Dropshipping with Aliexpress
The scheme of direct deliveries with this platform looks very simple. First of all, you need to find a good wholesaler. It is possible to evaluate products based on photos and customer reviews. Found something that fits - write to the seller. Next, analyze his communication style and responsiveness. Do you want to be 100% sure? Follow the customer's path: order the product and pay attention to its quality, delivery speed and packaging. If everything is fine - cool, discuss the terms of cooperation.
After that, you can safely post the product in your online shop and wait for the first customers. When the orders are issued, give the information to the manufacturer and he will deliver the goods in the best possible way.
Aliexpress is not for nothing considered the best option for beginners. Everything is simple and clear here, the main thing is to understand how the system works.
Dropshipping on Ali baba
Ali Baba service is not as popular as Aliexpress. On the site, as well as on AliExpress, you can find a huge number of different products at a wholesale price. And this is exactly what a dropshipper needs. It is worth noting that Ali Baba is more focused on wholesale sales.
The dropshipping scheme on the site looks like this: you sell in your online shop, for example, phone cases (not having them available, of course). After the customer places an order on your website, you accept the payment and pass the information to the manufacturer. The latter independently packs and sends the goods to the buyer. As is the case with other services, you earn on the difference between the purchase and retail price.
The main thing is to approach the issue of margins wisely. Focusing on the domestic market, remember that in this case you will earn on the number of sales, not on margin.