How To Make Money Doing Dropshipping

There are those who have a lot of ability to sell a product. The person to whom it is offered may not want to buy it. However, after applying countless persuasive techniques, they manage to convince her and she ends up buying it. In fact, she becomes convinced that she needs it and she ends up using it. In other words, they are capable of selling ice to the Eskimos.

Sure, this technique is effective when the sale is done face to face . But, at present, it is common to use technology to carry out different types of work, which includes the purchase and sale of products, objects and even services of our own or those of third parties.

Of course, as is to be expected, in this field, other commercial techniques are applied. Since there is no direct interaction with the potential buyer, the seller must make use of other tools to persuade and induce users to buy . These techniques can be images, testimonials from other buyers, a striking logo, etc.

Would you like to investigate more on this point? Do you want to sell online? What do you need to achieve it and be a successful seller? During this article, we will be talking about a term that is closely related to the buying and selling process. It's about Dropshipping.

Have you heard about him? You know what it means? What is it alluding to? If not, don't let the parrot go! You are not the first nor the last person who has or will have the same problem.

However, thanks to reading this article, you will know what it refers to and, not satisfied with it, you will find out how it works , what are the advantages it offers, the disadvantages that must be considered and what you must do to create a Dropshipping service , so that you can carry out the process correctly.

What is Dropshipping?

Dropshipping is nothing more than a business model , which makes it possible for the owners or administrators of an online store to sell products to their customers, without having to have them in their warehouse.

Through this type of e-commerce , sellers do not have to deal with the common problems of conventional sellers. For example, while a physical or common store must buy the product and store it until the sale is made, Dropshipping allows you to sell, bypassing this purchase and storage process.

Contrary to what it might seem, this business model is not something new . Since 1999 it has been implemented by large companies in the electronic business world, such as Amazon.

How does it work?

  1. The first thing you should do is set up a Dropshipping store, where you will love to show the different products you want to sell.
  2. In case the products are liked by people, you will make sales . Which you will have to charge directly, even if you do not have the product in your stock.
  3. Then, you have to fulfill the order by placing an order with the supplier and paying the supplier for the product at cost price.
  4. When you have made the payment, you will start a process where the supplier is in charge of making the shipment , directly, to the buyer.
For Dropshipping to be successful, your final sale price must be higher than your cost price . That way, the margin of difference will be the profit left for you.

After reading how it works, we could say that it is a simple and profitable procedure , since it only requires that you do a good promotion of the product, to make sales, without giving money in advance. But what other advantages do they offer?

Its advantages

Some of the benefits that you can enjoy are the following:
  • It is not necessary that you invest a lot of money: one of the great obstacles that online store entrepreneurs have is the initial investment. However, by applying Dropshipping, you can jump that barrier.
  • It has fewer fixed costs : since there is no need to buy stock, the store will lack many fixed costs, except those that are typical of the web, such as hosting, Internet connection, etc. As well as variable expenses that are related to sales.
  • It has great growth potential : another reason why it is a viable business is that, with effort and professionalism, the business will grow, until it becomes a great business.
  • You don't have to take care of preparing the orders : this is one of the most tedious tasks and one that adds less value. But, with Dropshipping, you will save everything that is related to this, since the one who will take care of it will be your supplier. You will only have to make the sale, charge the customer, pay the supplier and issue the order for the product.
  • Its management is easier: since the only workers will be the entrepreneurs themselves, it is much easier to make things work. In addition, since you do not need a warehouse, you will save having to hire employees to perform manual tasks.
However, the world of Dropshipping is not a path full of roses , it also has its complications or negative side.

Its disadvantages

  • High dependency on suppliers : This is especially annoying when you decide to work with a supplier that ends up being lame or failing to meet their commitments. Since you will be responsible for the transaction, if a customer buys a product and it arrives late or defective, it will be your responsibility to change or return it. In fact, you may, in some cases, be left with a defective product that you have paid for with your own money.
  • There is a lot of competition : since it is a way to get money quickly and easily. The war that is generated between the competitors, many times leaves prices on the ground and, sometimes, your own supplier also makes retail sales and, therefore, ends up becoming your competitor.
  • A lot of positioning work is required : for this, you must know how to control the positioning in search engines, use SEO tools well and have money to carry out different advertising campaigns online. Only then will there be sales.
  • You earn less money than with a conventional online store: since you earn less money, it is necessary to make a greater number of sales, so that you can obtain the same profits that a conventional online store generates.
  • But, if even after knowing the disadvantages of Dropshipping, you want to continue, how can you create a service of this type?

How to do it right?

If you are want to launch this business model, these are the steps you must take:
  1. Find a niche that is profitable . For this, it is important that it does not have saturation, that it does not have a lot of competition, that it provides a need to cover, that it is profitable and that it is easy to position.
  2. You must negotiate with the Dropshipper . From this negotiation, the conditions that will govern the proper functioning of the business will be generated, which includes the prices of the products and their delivery.
  3. Create the online store . This implies the creation of a catalog of the selected provider's products, the treatment of the images that are free of copyright, the descriptions of the same using the SEO requirements, etc.
  4. Receive orders and make shipments . Ensure that deliveries are made within the agreed period. Likewise, both the package and the items must have the retailer's brand name and include an invoice.
  5. Evaluate the operation of the business . To do this, it is necessary that, through a call or an email, you carry out a short survey or ask questions to be aware of what the results of the purchase were and what should continue to be worked on.
This concern to provide a better service is highly valued by customers, manages to build their loyalty and allows them to make frequent purchases.

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