What is Dropshipping? How to make money online with dropshipping?
Finding a source of passive income from MMO is one of the goals that many people are aiming for. In the process of finding an effective and lasting way to make money online, you must have heard about dropshipping.
1. What isDropshipping?
Dropshipping is "selling without shipping". It is a retail method where the store does not need to store the goods in stock. Instead, you pass on your customer orders and shipment details to another manufacturer or supplier. These people will then deliver the goods directly to the customer. With this mode of business, the retailer does not need a warehouse and the goods in the warehouse nor care about the transportation of the goods.
You can put it simply that you buy the product at a low price place and sell it somewhere for a higher price and make a profit from the difference. The profit you make is the difference between the supplier and the price you sell to the customer minus shipping costs. The difference more or less will depend on the type of product and how you choose the supplier.
2. Who is Dropshipping for?
Any job that wants to be successful also needs to invest in both effort and money. Depending on your financial capacity as well as the time you are willing to spend, you can consider dropshipping work part-time or devote all your time to it. In addition to those who consider dropshipping as the main profession, determined to work fulltime, there are also many people who want to find a left-hand job to earn extra income. And here are 3 groups of subjects that are very suitable for this job:
∎ Clerk: If you are an office worker, have 2-3 hours of free time per day. Want to find another source of income other than salary. Then making money online by dropshipping is very suitable for you.
∎ Student: It can be said that students are very suitable for dropshipping. Because this is the object with a lot of free time, but not too much capital to do business.
∎ Online sellers: When you first started selling products online, knowledge and experience are the factors that you are lacking a lot. Knowledge of market analysis, product finding, sourcing, shipping, marketing knowledge. Dropshipping will equip you with those basics so you can confidently enter more difficult markets.
3. What are the steps to starting a business with Dropshipping?
⦿ Step 1: Select the product, the supplier has the right price, negotiate the price and shipping method with the supplier. This is a very important step, you must choose a reputable supplier with quality goods and stable prices. Choosing the right supplier will determine how much profit you can make and whether dropshipping is successful.
⦿ Step 2: Select the sales channel. You can post products on store on e-commerce sites like amazon, ebay, or on your own website through shopify ...)
⦿ Step 3: Customers will go to your store to buy goods and pay you money via Paypal account, Payoneer or a Paygate accepted by the place you sell
⦿ Step 4: Purchase and send to customers. You use the money your customers pay you, go through the buying supplier and ask the supplier to ship the product to your customers.
⦿ Step 5: Supplier packaging, shipping. At this step you can track order information and take care of your customers.
⦿ Step 6: Summarize the data, calculate the profit of each product and have more suitable adjustment plans.
4. Advantages and disadvantages of Dropshipping?
⦿ Does not spend a lot of capital: The biggest advantage of this online business is that you do not have to invest in storage and transportation. If in the traditional business model, when you start the business, you will spend a small investment in storage costs.
⦿ Flexible location: For a business person with dropshipping work place is not a problem, you only need a computer with Internet connection to work. As long as you can easily communicate with your customers and suppliers.
⦿ Easy to start, fast turnaround time, Flexible, Suitable for business beginners, students, newbies.
⦿ Do not worry about inventory, there is no case of importing a pile of goods that cannot be sold, no need to find and rent a store.
⦿ Commissions received immediately upon completion of each order. No need to wait for 3rd party approval.
⦿ Low profit: this is the downside of this form, because it costs less initial investment, so this is the form that many people choose to participate in, thus pushing the competition up.
⦿ It is difficult to manage the quality of goods sent to customers well.
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