Looking to start your dropship business? Want expert help on how to drop ship products to sell but confused with conflicting drop shipper reviews online and a plethora of drop ship programs and drop ship business ideas to choose from? Well, you surely are not alone scratching your head with how to start selling products without inventory.
In this post, we will be learning about definition of drop shipping and how to drop ship products without putting a hole in your wallet. The post would also help you simplify the complexities behind different drop ship products, drop ship companies, and drop ship wholesale suppliers.
Definition Drop Shipping-What Is A Drop Ship Business
Dropshipping can simply be classified as a retail fulfillment (drop ship fulfillment) method wherein a dropshipping retailer owns a dropshipping eCommerce store and showcases the products belonging to a dropshipping supplier (a manufacturer or a wholesaler). It is important to note here that the retailer doesn’t keep the products it sells in stock. Instead, it buys the item from the dropshipping supplier once a customer has visited the retailer store and purchased and paid for a product.
The supplier, on receipt of payment from the retailer, packs and ships the products to the customer on behalf of the retailer. In other words, the retailer does not get engaged in inventory, packaging, and shipping but only in promoting and selling products. On the other hand, the supplier does not get engaged in promoting and selling products but only in inventory, packaging, and shipping.
In simple words, dropshipping is a form of supply chain management model wherein the retailers don’t have to worry about inventory, packaging, and shipping. All they need is to just promote and sell the products of suppliers and earn handsome profits on sales.
Drop shippers work as intermediaries between suppliers and customers. Once a customer places an order and pays for it to the dropshipping retailer, the retailer transfer information about the order to the supplier while keeping the difference between the price paid by the customer to him (the retailer) and the price paid by him (the retailer) to the supplier as the profit. The supplier, upon receipt of the wholesale amount from the retailer, packs and ships the order to customer on the behalf of the drop shipping retailer.
Dropshipping Model Vs Affiliate Marketing Model
There are many differences between the dropshipping model and the affiliate marketing model.
The comprehensive process of dropshipping involves the dropshipping retailer’s store, the customer, and the supplier. Customer visits the dropshipping retailer’s store, orders a product, and pays for it. The store transfer details of the order to the supplier. The supplier ships the product to the customer on behalf of the dropshipping retailer. For instance, if the price of a product on the wholesale is $100, the retailer can sell it for $150 to make a profit of $50.
In the dropshipping model, the retailer is absolutely free to set his own prices and makes his profits through arbitrage.
Affiliate Marketing Model
In the model of affiliate marketing, the affiliate sells the products of a company that he is marketing for a specific commission. There are countless programs on the internet for affiliate marketing but the commission to be earned by the affiliate is generally set by the company whose products are being marketed and sold by the affiliate. Unlike dropshipping, the affiliate does not have the freedom or authority to set prices on his own.
In the affiliate marketing model, the affiliate works at a fixed commission and earns this amount on the basis of the number of products sold through his reference.
Who Should Dropship? Who Is It For?
Dropshipping is ideal for:
- Entry-level entrepreneurs
Dropshipping is ideal for Beginner Entrepreneurs who are looking to start a new online business without inventory. The good thing is that these entrepreneurs have a flair for understanding the concepts. With little to no risk involved, the entrepreneurs can easily and quickly take their online business to a whole new level.
- Budget Entrepreneurs
It is a well-known fact that budget entrepreneurs are wizards of mathematics and tricks. They carefully and comprehensively evaluate all the pros and cons, including their profit margins and possible losses, and keep benchmarks for their next success. Dropshipping products on eCommerce platforms like Shopify and WooCommerce are ideal businesses for them. For budget entrepreneurs, drop shipping is all about passive income pipelines.
- Side Hustlers
Side hustlers already have a permanent day job and all they want is to make some extra bucks on the side. They are ready and open to utilize new technologies to help them earn more money. Initially, they may require training but they will be ready to take things into their own hands once they understand how the whole dropshipping process works.
- eCommerce Store Owners
Selling products online is the bread and butter of eCommerce Store Owners. Therefore, starting a drop shipping business will be nothing but extra gravy on their plate. These store owners have a high chance of becoming successful as they already have an understanding of the market, buying patterns, customer preferences, the advertisements that convert, and the market they want to target.
How To Start Dropshipping?
You can easily and quickly buy an amazing Shopify dropshipping store from BE BIGGY to kick start your dropshipping business in 2019. The best thing is that BE BIGGY would deliver a ready-to-go-live turnkey Shopify dropshipping eCommerce website to you within just 24 hours of its purchase by you. This simply means that there is no endless wait for you to become the proud owner of a fully-automated web store that comes preloaded with a wide range of the best products to sell on Shopify.
Not only this, these trending products to sell online and bestselling items to sell on Shopify are shipped to the customers of your store from some of the most promising and reputed names in the world of Shopify drop shipping suppliers. Grab your Shopify dropship websites for sale now!