Dropshipping is the new way of doing business. Rather than having to store, manage and invest in your own products, with dropshipping, you simply upload a list of what you want to sell, then sit back and relax as your supplier takes care of everything else for you. No stock or storage costs are involved.
No need to even purchase a domain name. Some suppliers just use their supplier’s website address until an order comes through – they’ll use it if it is available at that time – otherwise, they don’t!
Logistically speaking, there are far fewer overheads too, so no need for warehouses or outlets so makes it very cost-effective indeed! The supplier stocks the item, ships it out directly to your customer, and notifies you when they’ve done so.
The supplier packages and ships all items and notifies you of that fact – you don’t even have to do anything!
You can order multiple products at once, set an order minimum or maximum, and add your company logo on the product pages. Even better, there is no limit on how many orders you process per day, which means increased profits on your part.
9 Things That Everyone Must Know About Dropshipping
Here are a few important things that everyone must know about dropshipping.
1. Some Products Yield Greater Profits
There are products that you can sell that will yield far greater profits than others. All of these have to do with market demand and its fluctuations.
In periods of economic growth, the prices of raw materials will rise, luxury items will remain stable and competitive, but other items will see a rise in price as a result.
2. Earn Through Commissions
You can earn commissions on referrals of your supplier’s products to other people, so providing they purchase the items within 3 months, you get a cut of their earnings too!
3. Some Suppliers Want Exclusive Rights
Not all suppliers allow this – only select ones do, but it is worth inquiring if you think it would be beneficial to your company or not. Some suppliers want exclusive rights to sell their items, while some even welcome this practice because it acts as a free advertisement for them! Either way, though, there should be no issue finding someone who offers referral commission schemes!
4. Suppliers and Customers Does Not Need to be At the Same Place
Your supplier doesn’t necessarily have to be where your customers expect them to be. There are no trademarks to say your supplier is in China, for example! Just remember that you have to be able to pass off the products as genuine items.
5. You and Your Supplier Doesn’t Need to Be at One Place
Your supplier doesn’t necessarily have to be where YOU expect them to be either, so it’s great if you don’t live in or near an urbanized area! You can find suppliers all over the world and some even allow dropshipping from other suppliers too, which means you aren’t limited by location at all – providing, of course, their terms and conditions apply too (not all do, though)!
6. Return and Refund Issues
The only risk involved with dropshipping is that if any of your clients return their purchases, then they will need to return to your supplier first before they honor a refund. This isn’t generally a problem, though, as the suppliers’ own returns policies are usually far more generous than most other companies! The rule of thumb is that if your supplier offers free shipping, then they are probably pretty good to deal with! Just make sure you read their terms and conditions before signing up or placing any orders.
8. Charge Your Desired Rates
You can charge whatever you like for the items, but many drop shippers offer discounted prices on products, so it’s also worth checking these out first to see what kind of deals they have available – after all, why not save yourself some money too?
9. You can Start from Your own Home
It is possible to start your own dropshipping business from home without anyone knowing about it – perfect for those who don’t want to be tied down to a particular area or location!
10. Niche-Specific Dropshipping is the Future
The competition is increasing day by day, which gives us only one solution: to go niche-specific. Narrowing down your competition by going niche-specific will give you an edge as you will be making money very early.
For example, if you start dropshipping in the furniture and home niche, then your chances of getting early success are higher, especially if you choose to work with MyDepot.com because they will allow you to work directly with the suppliers and manufacturers when you start niche-specific dropshipping.
Dropshipping is a great way to make money online without having your own inventory. It’s also free from risk, and it doesn’t demand you invest any significant capital upfront. Thanks to the Internet, it is now easier than ever before for people from nearly every part of the world to set up their own dropshipping business!