A lot of people want to get started in the web business, it’s a convenient way to earn money from the couch. We’ve been hearing a lot about Dropshipping for some time now, but what is it really about, can we actually make money and how does it work?
Dropshipping a real opportunity?
Going into dropshipping can really be a great idea, if you’ve thought out your strategy, have a good site, and can differentiate yourself from the competition. Keep in mind that there are also many drawbacks to consider before making this throw.
Over time you will find the product that will stand out, as well as the supplier you can trust, which will benefit your bottom line. So dropshipping is a good business idea, to work from home.
What is Dropshipping?
Dropshipping is a tripartite solution that has taken a big place in the latest trends to make money on the internet. We say tripartite because there is a relationship between you (your store) the customer and your supplier.
The basic principle is quite simple, you just need to have an online store, import products from a marketplace using different plugins and sell them. The big difference with a classic e-commerce is that you don’t have any stock and you don’t take care of the logistics.
How does Dropshipping work?
As said above, it’s pretty simple, you create your online store on a CMS-type platform like Shopify. You add related products from suppliers that are usually from the famous Aliexpress marketplace.
Once this is in place, your customer places an order on your store. The process is then started. Your store automatically sends the order to the supplier, who prepares it and ships it directly to your customer.
Be careful, do not forget that these CMS take a commission on the products sold. It is therefore necessary to imagine a pricing, which will let you enjoy a reasonable margin.
The advantages and disadvantages of getting into dropshipping
Creating a dropshipping store has many advantages but also some disadvantages, which you should be aware of before launching:
- The financial risk is reduced, because you do not hold any stock therefore 0 risk of unsold
- You can design a rich and varied catalog, very quickly
- No logistics, the ordering process is managed by the supplier himself
- The main disadvantage is the competition which is predominant in this area, so you have to find the right product niche
- You have to take into account the processing fees, which the supplier will apply, so think about your margins
- You have no control over the stock of products