What is Dropshipping?
1) You look for a manufacturer or wholesaler of goods that offers drop shipping opportunities
2) You make a deal with for them to sell their goods on your website
3) When a customer purchases from your website, you notify the manufacturer, and they send it out
No stock or warehousing needed!
Benefits to Dropshipping
- Very Little Capital Needed – you don’t need a huge amount of money for inventory purchase.
- Low admin costs – no storage space needed so you save on high warehouse and inventory management cost.
- You want to scale up no problems – Increase your drop shipping eCommerce business by simply getting more suppliers for new and trending products!
- Can be started anywhere – Dropshipping business can be run from anywhere! All you need to get started is an internet connection and a website.
Drawbacks of a Dropshipping Business
- Profits are Lower – In view of the fact that you do not own the product you’re selling the margins are lower. You effectively receive a discount from the supplier for promoting the product.
- High competition – As the barriers to entry are very low, huge numbers of people are involved in this
- Business model. This is where with our expertise you have a higher chance of succeeding and making a huge profit.
- Some Supplier is unreliable – If the customer does not get the product that has ordered, the buck falls with you.
The Dropshipping Process
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Step 1: The Customer places an order through your eCommerce website. The customer than make an
address will be in the shipping box and your name on the invoice.
payment to you, which goes straight to your Paypal account.
Step 2: You send the order to your chosen dropshipping supplier. There are a variety of ways to do this. Either via an email to the sales rep or through an automated XML system
Step 3: The supplier or wholesaler charges you via your Credit card and then dispatch the order. You ensure that the supplier put your website name and return address inside.
Step 4: After a few days, the supplier sends you a shipping tracking number. You then inform your customer that their item has been shipped together with the tracking ID. Depending on your website system, this could be just a simple click of the button.
Step 5: Customer receives the shipment. They are happy with the product. You then pocket your profit.
Your profit is the difference between what you paid the supplier for the product and the payment you received from the customer excluding any other expenses.
The Supply Chain
The supply chain is the route a product takes from manufacturing to the supplier and then finally the customer.
For dropshipping, we have three group of actors:
- Manufacturers – These are the factories that make the product.
- Wholesalers – These are the companies that buy the product in bulk from manufacturers, then sell to retailers
- Retailers – Anyone who sells the products direct to the public, for instance, you.
Who Offers Dropshipping?
Dropshipping is a service anybody within the supply chain can offer.
When the manufacturer ships its own products direct to the customer, it’s dropshipping.
Wholesalers and retailers also offer this service, though the price is marked-up at each stage of the supply chain.
How to Find Dropshippers
Unfortunately, with the ease and popularity of dropshipping, many unscrupulous companies try to take advantage of this business.
Fakes dropshippers are usually just deceitful retailers and middlemen who offer drop shipping services … for a price …
They sell to the public – If a wholesale supplier offers products to anybody at “wholesale prices”, they are simply a retailer.
So, beware of fake dropshipping sites!
Real wholesalers and manufacturers will not charge you a “monthly membership” fee for the privilege of using their services.
Search Google for Legitimate Wholesalers
Traditionally, Wholesalers don’t do much to advertise their services, and they don’t do a lot of online marketing. Therefore, when doing a search for “(my niche) wholesaler”, you may have to search through a few pages on Google until you find some legitimate suppliers.
Some words to try in your search:
Once you’ve selected your supplier, it’s time to set up your shop front. You can try and set up your own website, which may take you quite a few days to accomplish assuming you have a good knowledge of HTML. The other option is to go with a template provided by an e-commerce site such as Shopify or a plugin like WooCommerce.
Another option is the Alibaba, Aliexpress model. This is a huge marketplace of products and suppliers. You can shortcut your search for Wholesalers by using the Aliexpress model.
To pull all those suppliers to one website, you have of course AliDropship Plugin! It’s the unique WordPress based solution to assist with the creation of AliExpress drop shipping stores and easy importing of Ali products. You can have your own website built in minutes. This tool is so easy to manage, that even an infant can launch a drop shipping store with its help!
Key benefits of AliDropship plugin:
– Affordable price with no limitations
– Fully compatible with WooCommerce
– Simple and user-friendly interface
– Easy product search and instant upload
– Live stats and auto updating
– Built-in themes optimized for high conversions
– Free lifelong support and updates
You can have your AliDropship plugin forever now.
So, when starting an online business, it lets you easily avoid the hassles of things like developing products, tracking inventory, setting up warehouse space, and maintaining a confusing shipping/receiving infrastructure.
Drop shipping is considered a low-risk business model making it great for new entrepreneurs.
Are you ready to start drop shipping business?
Order your own website today!
A great alternative is to have a custom-built ecommerce website of your own unique individual preference. Should you want a 100% hassle-free start, you can order a turnkey custom drop shipping store from AliDropship professional team and begin getting revenues right away.
As soon as it’s done, you can start marketing it and making money from day one.