What is Dropshipping?
The Dropshipping Business Model Explained
Dropshipping is an Internet business model, where the seller (dropshipper) creates a website (e-store) for online trade and accepts orders from website visitors.
After the order is paid at a retail price, the seller then forwards the orders to his supplier and pays wholesale. Wholesale price is lower than the retail price, so the difference in cost is the dropshipper’s profit.
Once you forward the orders to your supplier, your job is done.
The packaging and shipping process is handled by the supplier.
The dropshipping business model definitely has its advantages.
Let’s discuss those.
What Are the Benefits of Dropshipping?
Without doubt, the biggest advantage of the dropshipping business model is that you don’t need to create/produce anything yourself.
You also don’t need to have huge warehouses and carry all the inventory yourself.
And you pay the supplier only AFTER the customer has paid you for the orders on your website.
However, dropshipping business also implies that your customers will hold you responsible for delivery times and the quality of the products shipped. That is why it’s extremely important that you choose the right suppliers to partner up with.
(And indicate a reasonable delivery time on your website).
The advantages of running a dropshipping business:
you start with little or no investment, because you don’t need to buy goods,
you can test the niches and after the testing decide which niche is hot on the market,
you don’t bother with inventory or shipping process, because that’s your supplier’s job,
your supplier already has a catalog of products, you just choose from this catalog of what to sell.
The disadvantages of running a dropshipping business:
you don’t see the quality of the product because you don’t ever see it,
you have no control over shipping and delivery time; if your supplier makes a mistake, the customers will contact you as the seller.
Dropshipping: What Are the Profitable Niches?
When it comes to niches, honestly, you can sell anything, as long as there is market for it.
Check out your suppliers’ catalogs.
As a general rule these companies focus on trending products that sell well.
But I will still name a list of products and categories:
Shoes and clothes,
Products for children (strollers, toys, clothes, etc),
Basically it’s an automation system that will simplify your dropshipping business. It is with Oberlo that you can import hundreds of products (of your choice) to your website in minutes.
If you get into this kind of Internet business, you will realize how awesome Shopify is, and what a huge time saver Oberlo is.
The only minor downside, in my opinion, is that Oberlo pulls products only from AliExpress platform.
For some reason the automation process hasn’t been implemented with Amazon and Ebay.
However, while Oberlo doesn’t work directly with Amazon and Ebay you can still connect your Shopify to Amazon and then fulfill the order through Oberlo (as with usual orders).
Note: Even if AliExpress is your supplier store, remember to filter the suppliers on there!
Having the right suppliers is extremely important to having a successful dropshipping business in 2018 (and beyond).
Step 3: Build Your Audience (Or Use the Existing One)
Of course, you can’t have sales if you don’t have traffic (customers).
At the beginning stages, you can start with using your social media accounts to promote your store. Instagram, Twitter, Facebook, Pinterest – you name it.
Example:On Facebook, then first set up your business page, gain followers and then use Facebook ads featuring some of the products on your store.
Pinterest is known to have a great platform where most people come to with intent to buy.
Instagram is a widely popular platform to sell your products on as well.
But just like with anything else, do your research and learn.
Having proper guidance is important in everything you do!
How Much Money Can You Make with Dropshipping?
Here’s the thing:
When it comes to making money on the Internet, the sky is the limit!
Below I am attaching a video done by Johnny FD with his real screenshots of his earnings of his dropshipping business:
Keep in mind that dropshipping isn’t as easy as it may sound.
Just like anything you need to constantly learn and implement your knowledge into practice. Patience, time and dedication are extremely important to your success (in anything).
I want to share Jason’s video who shares his thoughts on how much you can REALISTICALLY make with dropshipping and e-commerce stores:
I hope these two videos clarify that:
there is no limit, BUT,
you need to put in the work to succeed.
It’s simple as that.
How I Make a Living Online: My Personal Experience
I’ve looked into dropshipping model in the past but there are a couple of reasons why I am not doing it right now:
I already had a few sites to run, my Amazon niche website being the main focus;
Lots of customer service if something goes wrong, I prefer answering the comments on a blog;
I’m enrolled in an investing course AND I’m in the post-surgery recovery period, so no energy for dropshipping.
While the dropshipping business model works for many, my preferred business model is affiliate marketing.
Here is the thing:
As of 2018, there are almost 4 BILLION of people on the Internet and they constantly search for things online.
This is where you come in with your helpful website to help those who are looking for information and point them in the direction of the stuff they are looking for.
Essentially, you are helping these people and in process you are earning revenue (at no additional cost to them).
Having your own website online is what connects you with your audience.
Once you build your website, as an affiliate it is your job to direct your readers/traffic to companies you’ve partnered with (for example, Amazon), and whenever your visitor buys something there, you receive commissions.
What Helped Me Get Started?
Without doubt, it’s Wealthy Affiliate. I joined in 2015 and never left.
Here is an honest video of what exactly to expect at Wealthy Affiliate:
It’s an amazing platform for those who want to learn how to make money online.
And the best part is that you have a unique chance to test-drive an ENTIRE program for FREE.