Until now, you’ve probably heard somewhere the term dropshipping (or drop ship) on MMO forums, business discussion groups, …
In this article, we will explain exactly in detail the dropshipping form and the knowledge needed to start a dropshipping business and the simplest way to find your dropshipping suppliers in 2020.
What is Dropshipping?
Dropshipping is a form of online selling through which you are a retailer (retailers) will connect directly with suppliers (suppliers) to supply products to customers instead of having to import goods and store in your own warehouses.
Getting an example in the simplest terms, the operation process of an order will be as follows:
#1. Customers buy a product for $500 from you
#2. You take the request and place an order with the supplier for $400
#3. The provider receives your message. Then shipping to customers with your information. You have a $100 profit.
Thus, customers only know you are the only party providing merchandise for them. The entire process is invisible because of taking place based on a previous agreement between you and the supplier.
But in fact, Dropshipping Business is not free as said, you can get started with your own dropshipping business for under $50 per month:
- Domain Name: $10 per year
- eCommerce Platform: Shopify – $29 per month on Basic Shopify (after a free 14-day trial).
- Automation App for optimization.
It’s really a low-cost for business starting.
How does Drop Shipping works?
Originally, when you are planning to start a business by opening an online store or social networking business, what do you need to do next?
You will have to find ideas about the product, then find the appropriate product supplier through consideration and comparison.
Next, to get really good prices, you need to order a certain quantity from the supplier to distribute to your warehouse and store.
And after that? Of course, try your best to solve all the goods you have taken.
The problem is that you will not know which products will sell well and not even know if you can sell all the products you have imported or not.
Why don’t we get a comparison between the original business with a dropshipping one?
|Online business model||Original Model||Dropshipping Model|
|Products Capital||500$ (5 products)||0$|
|Sold||600$ (3 products)||600$ (3 products)|
|Profit when closing||70$ + 2 unsold ones||300$|
Why Dropshipping Model?
Through the table, You can realize that even though the business results were the same, all 3 products were sold and closed, one side gets 70$ and another one gets 300$.
And the bottom line is dropshipping.
Of course, you can argue that you can make a profit of $ 450 with the traditional sales method mentioned above.
However, that is unlikely to happen when a statistic indicates that more than 50% of online Shopify stores have closed without selling any orders
So, the great important thing about dropshipping is that you can set aside a budget for advertising your products through sales channels because you don’t have to spend money to buy products before you starting.
How long does Dropshipping take until you get the first order?
When it comes to the Dropshipping business, patience and consistency are the top 2 criteria to grow your store in the long run. It will take time for your store to make a profit, but doing so is absolutely worth it.
The time it takes for your first order “depends on you”. You may receive your order the first day, or a few days later, it may be a month or several months. Having an order will depend on the effectiveness of your marketing strategy.
The core is that you should seek digital marketing knowledge to do a good job of marketing products, helping you to earn many orders as soon as possible.
How to find your dropshipping supplier?
In order to be successful with dropshipping, you need to know the customer experience and choose a reliable supplier. Most importantly, you should also find yourself a reliable supplier with quality products.
Here are some suggestions for finding a reliable supplier:
The cheapest one is sometimes not the best one
First, a T-shirt called “Summer T-shirt” with high quality and fabric is listed for $ 20.
However, a lower quality shirt for sale with the same name costs $ 10. To reduce the sale price to $ 10, instead of using cotton, they use polyester.
If you are a customer when discovering 2 shirts of the same name, design with 2 prices on shopping, which one will you choose? Of course in most cases they will choose the cheaper one without knowing the truth that the quality is lower.
At that time, to ensure revenue, the company producing high-quality shirts had to reduce the quality of shirts to ensure competitive prices. Since then a low-quality shirt $ 10 is now completely replaced for a high-quality shirt $ 20.
Find Sellers with a positive rating above 95%
For any sales network, the rating system for sellers is really important. Imagine a person yelling at you that this salesperson is cheating when you are shopping in a market. Will you continue shopping there? Probably not.
And the same goes for purchases online. Find sellers who have the highest positive ratings and listen to customers’ opinions about them.
Dropshipping suppliers’ response speed
Why don’t you send an instant message to sellers to check their feedback? Check their response time, English level, and dropshipping understanding of your request.
If it is an automated answering system, you can completely ignore cooperation with them.
At the same time, it would be great if you partner with dropshipping suppliers who respond sincerely and enthusiastically with a desire to answer for you.
Choosing a platform for finding Dropshipping Suppliers
It is also known as drop shipping if you know someone close to your house and signs a commitment to be your supplier when you have an application.
But think outside the box, why do you have to start a zero-dollar business with a supplier near your home when the world has a large dropshipping system that you can fully join?
The popular Dropshipping supplier platform is also developed to give beginners an opportunity.
For example, you can learn eBay dropshipping, amazon dropshipping, aliexpress or Alibaba dropshipping to learn more and develop your orientation.
Besides, platforms like 1688, Zara, Hypedc, Myer, … can also be options you can consider.
You already know a lot about Dropshipping – Now what?
A good plan is always the criteria to implement any business ideas. Don’t forget to research your audience, identify the products you want to sell and find your supplier of goods, it’s time to build your eCommerce store.
Don’t forget to use automation tools for your store so you can continue making money while you sleep.
Wishing you success developing your own Dropshipping model!