What is dropshipping, exactly?
A definition you could give to Dropshipping is the following; dropshipping is an order fulfillment strategy in which a company does not maintain a stock of the goods it sells. Instead, the seller purchases goods as needed from a third party, usually a manufacturer or wholesaler, in order to fulfill orders. Simply put, you never handle the product. You buy the product straight from the supplier and send it to the customer. You never have to mail the goods yourself; your supplier provides the facility of it.
Here is an example to help you understand the principle of dropshipping:
For instance, let’s say I discover a $10 product on Aliexpress, create a branded website for it, and then sell it for $30. To promote it and increase sales, I use TikTok or Facebook advertising. Once orders come in, they are not processed by myself, but automatically forwarded to a third party. This third party does all the order processing for me. The remaining amounts are mine.
Do I invest money to start?
With just the shopify plan, domain, and some advertising costs, you can already start dropshipping with a miniscule amount of €100
What elements determine your dropshipping success?
People who are searching for quick money and those who want to make money over the long term are separated by a number of essential aspects of dropshipping. The following is a summary of the key concepts you need to understand before starting your first dropshipping business.
- Product: Whether you are new to dropshipping or have been doing it for some time, choosing a product that will sell is one of the most important components of the business. There are many different factors to consider while selecting a product. You can use a range of free (AliExpress & TikTok) and paid (Product Snipe & PPAds) options to find your winning product.
- Store: Building a high-converting store is another key element in the success of dropshipping. The first step in setting up your Shopify store is adding items. You can use Chrome extensions like AliSave to get shop product images. Set your own prices and exclude adding taxes on your goods. Deselect “Track Quantity” under “Inventory” while editting a product page. This because you are not storing any inventory by yourself. A high-converting sales funnel is critical in your product description.
- Marketing: Understanding how to promote whatever product or service you are offering is critical. There are numerous marketing platforms and advertising strategies to choose from. The most well-known platforms for advertising are Facebook, Instagram, TikTok, and Pinterest, and each of these platforms requires its own strategy for testing new products and scaling them up as soon as the ads perform well.
- Fulfillment: Working with reliable and trustworthy suppliers is critical to ensuring high-quality products and excellent customer service. Dropshippers frequently undervalue this aspect of dropshipping because they are only interested in earning money. Having a supplier who ships out low-quality products with long shipping times will ruin your business in the long run due to chargebacks and complaints. Fortunately, you are reading the blog of one of the most cost effective and reliable dropshipping agents in the industry 😉
- Optimization: A good dropshipper is constantly working to improve their business. It’s a never-ending learning process that will only increase your profits as you learn more about dropshipping. Consider optimizing your website design/layout, adding upsells and cross sells, hiring a customer service team, creating quick workflow processes to test more products, and so on.
Dropshipping is a simple yet effective way to start your own business with little initial investment. We hope this article has inspired you to start your own business and given you some ideas on where to begin!
Dropshipping is an excellent way to launch a low-cost online business.