Dropshipping allows you sell to customers without holding any inventory. You don’t need to pay for products upfront. It is a great way to venture into entrepreneurship.
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Dropshipping allows you sell to customers without holding any inventory. You don’t need to pay for products upfront. It is a great way to venture into entrepreneurship.
Thinking dropshipping as one of the easiest ways to start making money online straight away is the biggest scam there is. You will need an e-commerce platform to set up your store, as well as pay for hosting. Most people choose Shopify when it comes to dropshipping. You can only start selling when you are on a paid Shopify plan, which the lowest starting at $29 per month.
Hosting fees are around $14 per year, so all in all you’re looking to spend at least $312 each year to get started. While you could get off and running on this amount, I’d recommend including a small budget of around $100 for advertising.
Unless you have a blog, Shopify doesn’t generate much organic traffic so you’ll mainly get visitors to your store through paid ads.
The biggest attraction to dropshipping is at potentially how hands-off it is. You set up the store, choose products in a niche as advertised by vendors and list them on your store. The vendors will help you package and fulfill the orders, so you just worry about the store’s interface and responding to customers’ queries.
The kickback to dropshipping is that the business model can have small profit margins. Since you have little control over a product’s production line, you stand to earn very little compared to other e-commerce models.
A lot of people think the easiest way to get rich is by dropshipping, at least their money isn’t tied down on stock. There is no silver bullet for starting a drop shipping business and no such thing as a get rich scheme. Building a successful business requires hard work!
You have to find your niche, dedicate few months to research of product and determining the niche. Once you’ve done with a product, try to find the top suppliers and interview them all. Call each one and have a talk about pricing, stock levels, discounts, shipping, returns, damages, everything. It’s time consuming, but it’s the single most important part of this process. Do not ever drop ship from China. USA, Europe wholesalers only, or else the long shipping time and no returns will kill you quick. If you’re serious about building a long-term business, I recommend starting your own e-commerce store.
Find suppliers that are offering outstanding Service. Making customer service a priority set your dropshipping business up for success!
You will work with multiple suppliers, they will send you updates spreadsheets simultaneously, there might be too many work to handle quickly and without mistakes.