What is Dropshipping and how does it work to earn money?
Managing an online store without buying merchandise, or without having to manage shipments, is completely feasible if you have a good understanding of what Dropshipping is and how it works.
Without a doubt, this business model will make your life as easy as possible and will allow you to earn thousands of dollars monthly if you learn to manage it.
What is it for you to do? Boost your online sales, while the wholesaler is responsible for making shipments to your customers.
Many people have doubts about whether this business works, the short answer is: Dropshipping does work , and you can start this business today to start generating a new source of income, from your computer and anywhere on the planet.
Learn more about Dropshipping:
Understanding what Dropshipping is will help you successfully balance your finances, and above all, start profitable businesses that will bring you ever closer to financial independence.
In this article we will explain how this business model works, how much money you can earn with your online store , and how you can boost it through certain marketing and market research strategies.
The idea is that you become familiar with all the benefits of Dropshipping so that you can operate your own business successfully.
What is Dropshipping:
When you understand what Dropshipping is, you will not only strengthen your entrepreneurial attitude, but you will also have the necessary knowledge and information to motivate you to start your own business online easily and safely.
To begin with, this is a business model based on the sale of products online , without even having them in stock. This means that you can create an online store and start generating substantial income by selling the products of a third party.
To do this, you must establish agreements, negotiations and alliances with a wholesaler, or with the manufacturer of the goods you want to sell digitally, because ultimately he will be in charge of making shipments to your customers.
Dropshipping has become the ideal alternative for those who want to make money from wherever they are, without having to deal with the logistics of shipping.
How Dropshipping Works:
The first thing you should know if you want to create your own online store to sell someone else's products is that you do not need to have a warehouse since you will not have the physical merchandise in your possession.
In simpler words, your job will be to offer the products to your customers, since the rest of the process will correspond to the wholesaler, who is better known as a Dropshipper.
The operation of this business:
If someone tells you that you need to invest a large sum of money in merchandise to start your online store, they would be telling you a big lie.
Or, most likely, you do not know what Dropshipping is and the immense potential it has to earn money online monthly.
Gone are the days when you were forced to make a large initial investment to buy products, store them, sell them and ship them to your customers on your own.
Dropshipping simplified the Internet sales process in an impressive way, since you do not have to deal with the logistics of storage and shipping.
Basically you just have to create your e-commerce store and make sure that it is fully operational so that your potential customers can make their purchases without problems.
For its part, the manufacturer or wholesaler will be in charge of always having them in stock, that is, they must have them available in their warehouse, so that this dropshipping of shipments works with total efficiency.
5 Simple steps to understand Dropshipping:
Below we will show you the five steps you must understand to run a Dropshipping business:
- You create your online store through the ecommerce provider of your choice and start selling products. For example, you can use Shopify for this.
- Your customers visit your store and make a purchase from you at a set retail price.
- You buy the product from your Dropshipping suppliers at a wholesale price.
- This wholesaler sends the products anonymously and directly to your customers because they have them available in their warehouse.
- Your customers receive their products in the established time. In general, the Dropshipper is also in charge of managing the possible returns that your clients may request.
How to make money with Dropshipping:
Today, Dropshipping is one of the most lucrative jobs from home you can imagine, given its enormous practicality and effectiveness when it comes to boosting online sales.
In essence, your job as the owner or administrator of your online store is none other than to attract customers and generate more and more sales.
Basically you are the intermediary between the supplier of the products that you offer in your store and the final customer, therefore, every time a sale is made, you will have to contact said supplier so that they proceed to make the shipment.
The business model, or the way you make money with Dropshipping, is due to dropshipping where, for every sale you make, you get a commission. In addition, you have the possibility to set the price for the products you offer in your ecommerce, which adds greater appeal to this model.
Providers and channels to earn money with Dropshipping:
Currently there are other mechanisms to earn money from home through Dropshipping, and they are based on establishing favorable agreements with certain providers.
For this reason we want to list some of the most attractive on the market to triangulate your shipments without problems:
1.SaleHoo:
This company of New Zealand origin has a fairly extensive list of wholesalers or Dropshippers.
More than a supplier, SaleHoo is a very extensive directory (in fact it has more than 8,000 wholesale distributors, manufacturers or liquidators). Most of their suppliers are known to be located in the UK, US, Australia, New Zealand and China.
Today it is a widely used tool by online resellers who are interested in getting products at wholesale prices.
SaleHoo allows you to do quick and efficient searches by brands, names, categories and more. When you get what you are looking for, you will have to use its interface to contact the suppliers and thus specify your wholesale purchases (to later start your Dropshipping business).
How much money can you earn thanks to SaleHoo?:
This will depend on the market niche you want to enter, the product in question and the supplier with whom you decide to establish wholesale agreements.
However, we can give you a small example to give you an idea of how lucrative SaleHoo can be for you .
Portable treadmills, also known as treadmills, are listed for around $95 on SaleHoo, while on other e-commerce sites like eBay, the best price for this product is $189.95.
This means that if you decide to sell this product in your online store for $189.95 USD, (after achieving a wholesale price of $95 USD), you would be generating a profit per unit of $94.95 USD.
Link: Create your SaleHoo account
2. eBay:
To earn money with eBay through this business model you only need to have a seller account (this means that you do not have to create an online store to start billing).
Right there you can choose which products you are interested in selling in your account, as well as negotiate with another wholesaler, merchant or supplier, so that they can take care of making your shipments quickly and reliably.
When you have defined these previous steps, it will only be left for you to dedicate yourself to promoting your products, boosting your internet sales , and creating a good reputation as an online seller.
To earn money, the best advice we can give you is to contact a wholesaler in Asia.
By buying from China you will be able to manage better profit margins, but you must take into account that customers will have to wait at least 30 or 45 days to receive their products.
How much money can you earn thanks to eBay?:
One of the best-selling products on eBay is men's caps. The most popular ones are available in China for $3, then sell on eBay for $24.
Mathematics is not wrong: if you sell them for $24 dollars, you will be generating a profit of $21 dollars for each unit sold.
3. AliExpress:
Without a doubt, Aliexpress is one of the largest Dropshipping platforms in the world.
This platform for the sale of products that come from China operates in more than 200 countries, and is one of the favorites of people who want to earn money doing Dropshipping.
This is because they handle very low wholesale prices, and above all, because they have a huge catalog of products (it has more than 100 million products).
Most AliExpress customers are resellers who have understood very well what Dropshipping is and how they can take advantage of it to earn money.
To begin with, you must find an attractive product on AliExpress, reach an agreement with its supplier and finally offer it in your online store.
4.Amazon:
In this list we could not leave out Amazon since it is one of the most influential e-commerce platforms on the planet.
To earn money with this global ecommerce giant, in addition to the Amazon affiliate program , you need to create a seller account and synchronize your provider's product catalog with this marketplace.
The rest of the work is done by Amazon through its Dropshippers and excellent shipping logistics.
How much money can you earn thanks to Amazon?:
You should know that Amazon will charge you a fixed rate month after month, as well as a commission for each sale made in your seller account.
So your profit or benefit will be the difference between what your customers pay you, and what you pay the supplier or wholesaler with whom you have decided to work through Amazon.
The advantage with Amazon is that its traffic is practically guaranteed, and it is also a very reliable ecommerce , so sales can be made more easily. However, the competition is just as high.
5. How it can be integrated with Shopify:
If you have already understood what Dropshipping is, you should be aware that your online store must be run on a platform, and this is where Shopify comes into play .
This is one of the best ecommerce platforms on the market, and that is why more and more people use it to create and manage their stores with ease and convenience.
Currently Shopify has several tools and applications that will help you choose your products, or sync them with your store instantly. For example, Oberlo is a Shopify app designed especially for:
- Sync products automatically.
- Track orders.
- Find products from many different vendors.
Essentially, once you get the products you're interested in selling, Oberlo immediately syncs them with your online store information.
Successful Dropshipping Strategies:
To significantly scale your Dropshipping business, generate more sales, and significant income, we recommend putting the following strategies into practice:
Discover potential market niches:
Don't let yourself be distracted or confused by the vast number of categories available for Dropshipping.
On the contrary, it is best that you focus on discovering valuable market niches that bring you closer to the potential customer who is willing to buy your products.
That is, instead of selling different products, focus on selling a very good product that captivates your ideal client so that they ultimately decide to buy it.
Sell products that are profitable:
Dedicate all the time you need to research products that truly offer you a good return.
The good news is that there are many Dropshipping providers that have very powerful tools to identify the best selling and lucrative products, and therefore, you should make the most of it.
Once you determine the product that you will sell in your online store, you must evaluate what your main competitors are doing to promote it, or to make it profitable.
Evaluate the quality of the product, compare the costs of sale, and analyze its benefits and profitability to know exactly if you are doing the right thing, or if there is something that you need to change before operating your online store.
Choose a good Dropshipping provider:
This is vital to achieve success with your Dropshipping business because, as you already know, your provider, or Dropshipper, will be in charge of all the logistics of storage, shipping and returns of the products you sell in your online store.
Study their reputation, the quality of their products, delivery times and the responsibility with which their wholesale business operates so that you can make sure that everything is in order.
Do not hesitate to consult the reviews and opinions of other companies that have worked with the provider that has caught your interest, as this will be very useful to define whether or not it is convenient for you to work with him.
Create an attractive online store:
If you really want to make money from your online store, it needs to be intuitive and attractive to your customers, so you need to make sure it looks good and is easy to use.
Make its interface nice, but above all, make sure it works optimally so that the experience of your users is completely positive.
This implies that the payment gateways work smoothly, that the products are always available, that the design of the store is visually favorable and much more.
Online course: Create your online store in Shopify with Dropshipping
Promote your business:
If you already have your store up and running and you are ready to make money through Dropshipping, then you are obliged to promote your business through various marketing actions.
Some of the most effective and popular are positioning in search engines -organic and paid-, better known as SEO and SEM respectively, content marketing, email marketing, or direct promotion on social networks.
These strategies will help you publicize your Dropshipping business, capture potential customers faster, increase your web traffic and increase your sales exponentially.
Recommended books:
Start making money with Dropshipping:
Earning money with this business model is absolutely possible, the first thing you should do to start is to understand very well what Dropshipping is.
So go ahead and create your own online store and develop a dropshipping strategy that allows you to successfully improve your finances from the comfort of your home.
Remember that you can earn thousands of dollars a year if you focus on doing things right, and especially on selling a product that offers you profitability and a good profit margin.
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