(Video)What Is Dropshipping

Drop shipping is a simple, inexpensive to get started, and your business can be run in your spare time or turned into a full-time business, if you wish to branch out.

With drop shipping, you don’t have to worry about having money to invest in inventory, or about dealing with finding warehouse space or shipping out packages. Simply add products to your online store, place orders with the drop shipper, and have them sent directly to your customer.

This post will examine the following regarding this topic :

  • Drop shipping, how does it work?
  • Top 7 Advantages of drop shipping
  • How to avoid common pitfalls of drop shipping

Drop shipping, how does it work?

Dropshipping 101

Drop shipping business model works this way :

  1. A customer places an order on your online store.
  2. You send the order to your supplier.
  3. The supplier ships your order directly to your customer in your name.

Let’s examine more about the drop shipping business.

Top 7 Advantages of Drop Shipping

Drop shipping is a great way to start an online business for these 7 reasons :

1 For beginners to online retailing , getting started with drop shipping is fairly easy. You just need to find a supplier, create a website and start selling.

2 Low start up cost. For most brick and mortar retail stores , you have to purchase inventory to sell. With drop shipping you don’t have to buy any inventory. Your only expenses are costs in creating your website and applying for a tax ID ( if applicable to the country you’re based in ).

3. Low overhead cost. Your online store doesn’t have the need for stored inventory, so you would not incur the cost of renting a warehouse to store the goods. Your only fixed cost would be that of maintaining your website.

4 Huge product selection. Most products can be drop shipped. In fact Salehoo.com offers a huge product selection. The Salehoo directory that showcases 8,000 suppliers and 300,000+ products!

5 Low risk. You don’t have to worry about any inventory.

6 Versatile location. You can run your online store from your home country or anywhere you travel on the globe! What is necessary to run your online store is the internet and your laptop.

7 Easy to scale your business. You can grow your online business without having to worry about labor costs or inventory.

How To Avoid Common Pitfalls of Drop Shipping

With the advantages of drop shipping, we must also examine the common pitfalls of drop shipping and how to avoid them.

1 Stock shortages. Sudden stock shortages are one of the most common problems that sellers have with drop shippers. To lessen the discomfort of this for both your customer and yourself, keep the lines of communication open with your supplier. Also update your customer in a good time frame, remember you can offer great customer service.

2 Sometimes you can’t combine products into one shipment for your customer. This can happen because multiple suppliers was needed to fulfill your customers order. You can ensure that the FAQ page on your website states that multiple suppliers may be used to fulfill an order.

Conclusion

Dropshipping is a business model that you can be successful in if you follow these 7 basic steps :

  • Identify Your Niche
  • Choose a Product
  • Find a Dropshipper
  • Make Sure the Dropshipper is Good
  • Prepare to do Business
  • Create Your Website/Blog
  •  Create an Ecommerce Store

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