What is Dropshipping

Categories: Online Business.

Nov 7, 2018 // By:Wyatt S. Mora // No Comment

Dropshipping is a great success thanks to the context of globalization and the development of new technologies that are currently enabling the development of online sales. Starting in the United States and Canada, the dropshipping technique has experienced significant growth on other continents but is still not very popular with Internet users and entrepreneurs. Representing a new and rapidly expanding market, dropshipping has become an increasingly widespread activity, particularly in Europe. Many of you would be tempted by this particular form of e-commerce, which can be a second source of income. For this reason, it seems necessary that you know more about the subject: in a concrete way, what is dropshipping? What do you need to know about this if you want to get started? Several points need to be clarified in order to allow you to start this activity without any problems, which could become a real opportunity for your next investments.


Definition of dropshipping

Dropshipping refers to a type of online business where the products presented by the sales site are sent directly by the supplier so you do not have any stock. Your site is an interface between the end consumer and the supplier who will ensure the delivery himself. With a simple internet connection and a computer you can sell dropshipping, which gives you a certain geographical and physical freedom. The main concern of the e-merchant will then be to promote its product range.

He will have to ensure the management of his site and the smooth running of sales: respect of the delivery time, reliability of the supplier, traffic acquisition… Compared to the characteristics of traditional commerce. The financial advantages of not managing stock are a good source of motivation for you to create your own online sales site. Although the supplier is responsible for delivery, you will be the first to benefit from the quality of the services they provide. If being an intermediary in selling online can become a job in its own right, it can also be a simple part-time activity, a way to make ends meet without having any particular technical knowledge.



Advantages of dropshipping

The products you sell on your site are stored at your supplier. As a result, there is no cost associated with the premises to store the items. In addition, you will not suffer from the problem of the fact that your stock has not been exhausted at the end of the accounting year. These are details that will be the responsibility of your suppliers. As you will generally be oriented towards the sale of the items presented on your site, this activity will turn out to be a low-cost investment that generates a high income due to the minimum working capital requirement. In other words, you will be able to resell an item at a much higher price than its original price.

Secondly, you will be your own boss, which gives you total control and freedom to manage your time. You can select the items you want to sell and therefore you can choose the target audience, I advise you to focus on enthusiasts (motorcycle, golf, football).


Find the product to sell in dropshipping

Although dropshipping is one of the most advantageous activities, there are nevertheless some prerequisites that you should know before entering the world of online commerce: which products will you market? Where will you find these products? What categories of customers do you want to attract? What are the expenses involved? As is the case for any company, you will need to conduct a market research to decide which product categories you will sell on your site. To find your product for sale I advise you to download my guide: Find a product for sale in dropshipping in 5 minutes. The choice of products is an important but decisive step for the success of your company.

Following this, it is essential that you select your suppliers. A good supplier must be reliable and experienced in the field. In addition, their location, the quality of their services, their equipment and their organizational capacity will have to be taken into account. These details are essential if you do not want to run into scammers or be seen badly by your customers when you start your business because often Chinese dropshipping suppliers often offer quite long lead times. To avoid falling for this, there are several characteristics that suppliers must meet. You can try it yourself by placing the first orders; you can check if the products are in conformity with the order, if the delivery time is respected… For my part I chose to use mainly AliExpress dropshipping to find my suppliers, but if you want French dropshippers I made an article on the subject: find a French dropshipping supplier. Also note that you will have to track the stocks of the products you have posted on your site because you do not stock them yourself: do the products put online still exist? It can happen that your customer places an order but your supplier no longer has the item in stock, which can be really annoying for the image of your site. Make sure your products are available from your supplier and update your platform for this purpose. Finally, as you will have noticed, investing in dropshipping takes more time than money; you will have to manage your schedule and be available for your customers.



Administrative formalities to become a dropshipper

Selling online in dropshipping requires a company status, the simplest status to start without big constraints and to test your market is the auto-entrepreneur status. In fact, I wrote an article to help you become a self-employed entrepreneur.

Finally, dropshipping has several advantages. The difficulties remain present but are not insurmountable; success in this business will depend on your ability to promote your online store and your products via facebook ads and SEO for example. At the same time, you will need to build a real long-term relationship with your suppliers. Once you start, you will be able to increase your income, you will even be able to make e-commerce your main activity. Dieshipping is therefore ideal to start in e-commerce at a lower cost. It is an investment with minimal expenses but which will ensure you an interesting turnover if you implement the right method.

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