How to Make Money from Dropshipping

Author: Blogging Light

If you have ever aspired of earning money in an easy way, then you may have heard of Affiliate Marketing, Google AdSense, Blogging, etc. But, I bet, less than 50% of my readers must have not heard of the term best products for dropshipping. Well, it’s natural for us as we are not engaged with things of this kind. But, mark my words, Dropshipping is the next big thing for me, you, and for all those who wish to earn money smoothly. So, let’s have a discussion on its exact meaning and many more useful aspects of the same in this article. So, let’s start and dive deeper into this post and learn how to make money from it.

In this article, I am going to discuss the following.

Table of Contents

  1. Introduction to Dropshipping
  2. Process
  3. How to set up your online Dropshipping Business to make Money
  4. Advantages & Disadvantages

Let’s start with the Introduction.

1. Introduction to Dropshipping

Dropshipping is a process in which the seller doesn’t keep a stock of the product he sells, instead of in case of an order, he produces that product from another place and gets it shipped directly to the purchaser (customer). So, in unofficial terms, Dropshipping is a kind of Affiliate Marketing. In both cases, we sell other's products. Moreover, Dropshipping allows you to deal with products around the world.

2. Process

Now, being done with its meaning, before getting started with store setup, first, take a look at the entire process taking place in How to start a dropshipping business.

  • A customer comes to your online store (will learn how to set up one in the next stop) and will place an order on your store, agreeing to your prices as shown on the store.
  • Now, this order heads to your supplier (one of many you can choose, whom you trust) and pay the wholesale price to him.
  • After receiving the payment and all the necessary details like order, address, etc., that supplier will ship that product directly to the address provided.

Yes! That’s it! You are done with the order. So, Dropshipping is the best way of earning if you aren’t willing for an investment. Now, read in the next section, how to set up your own online store for Dropshipping.

3. How to setup your online Dropshipping Business to make Money

Now, its right time to get started with our online Dropshipping business. For that, follow the below-mentioned steps.

? One of the key steps is to choose an appropriate niche for your business. It is important to note that the niche you choose, must fulfill the following criteria:

  • It should be laser-focused and popular among the customers.
  • The niche should have higher-priced products because the amount of work required to sell a $10 product is the same as that for a $100 one.
  • Find something that is inexpensive to ship as greater the shipping cost will be, more customers will overlook that product. Also, you can offer free shipping in order to attract more customers.
  • Don’t ship anything that’s readily available throughout the streets.
  • Create your own brand and sure your audience is actively searching for your products online.

All this will help you in getting the most appropriate niche that will be worth investing (here investment means your time).

? Properly analyze your competitors as you will be competing with giants like Walmart and Amazon. Offer some unique discounts that one cannot find on these Dropshipping giants. Only then, people will consider you first than these.

? Be a partner with a secure supplier as a wrong one can ruin your business in a second. For example, if Amazon’s supplier supplies you with a damaged product, what are the chances that you will order anything on Amazon seeing the same supplier? It will be zero percent and this leads to a loss of a potential customer.

? Building a powerful and well-structured e-commerce website is a must and as a beginner, you can go with Shopify. Once your business gets established and revenue starts coming in, you can build your own WordPress e-commerce site under a small budget.

? Lastly, you should be able to analyze and calculate how your customers originated, which part they took on your website to get the sale done. It enables you to scale what worked and what doesn’t.

In this way, you can set up your online How does dropshipping works business from scratch.

4. Advantages and Disadvantages

Now with our Dropshipping business being set and your income from it depends on various factors which are in your hands, now let’s discuss some of the Advantages and Disadvantages of Dropshipping.

Advantages

  • No need to store any inventory at your side.
  • Minimal investment is required.
  • One can ship any product of his/her niche or any other.
  • Requires a fewer number of staff members.
  • The owner doesn’t have to pack or ship products on his own.

Disadvantages

  • Not all companies agree to dropship.
  • Expensive cost of handling.
  • Some suppliers are inconsistent with their supplies and don’t inform when they get out of stock beforehand.

So, this article will definitely help you in starting your own Dropshipping business from scratch.