Sell The Trend
Guide to Drop Shipping

2020 The Ultimate Guide to Drop Shipping – What is Drop shipping: What it is and How it Works

Guide to Drop Shipping If you are trying to start selling online through your own online store, but you do not have any products, you also have no experience or financial ability to purchase and store the products. You also want to avoid the difficulties of shipping and delivery to customers. So is there a way to do that? Is there a way for you to build your store, add thousands of products, and ship it directly to the customer without any interference from you? The answer is yes this method exists and it has been in use for several years all over the world and some have made huge profits by this method. This method is called Drop Shipping.

Drop shipping – Anyone who has researched how business can be online can surely have heard of this term.However, few people understand Drop shipping. For someone new to the online business world looking to break into the field of e-commerce, the Drop shipping process can seem a little scary, as it can be difficult to find a reliable source that tells you everything you need to know.

Have you ever asked? What is Drop shipping or how does Dropshipping work? Well, in this article, we have the answers you need in everything related to Dropshipping.

We are going to talk about:

  • What is Dropshipping?
  • How does Dropshipping work?         
  • Examples about how Dropshipping works
  • The most important features of Drop Shipping
  • What are Dropshipping Pros?
  • What are Dropshipping Cons?
  • How to start with Drop shipping
  • List of the best suppliers
  • What products can be sold through Drop shipping?
  • Drop shipping via social media
  • Drop shipping via Amazon and eBay
  • Some common mistakes in Dropshipping you should avoid
  • Common questions related to Drop shipping
  • Is it easy to open a shop and ship products?
  • Will the customer know that I am using Drop Shipping in my store?
  • Why would people buy from my Drop-shipping store and not from original stores?
  • How will I deal with the problem of late shipping?
  • How will I guarantee the quality of the products?
  • How do I receive my profits from Drop shipping?
  • What is the profit rate from selling by Drop shipping?
  • Is Drop shipping a legitimate business?
  • Is Drop shipping worth it in 2020?
  • Important quick tips for beginners

What is Dropshipping?

Simply, Dropshipping is a business model that allows entrepreneurs to open an online store to sell types of products, without the need for physical products to be found by the online store owner. Whereas, the entrepreneurs who use the dropshipping will have a group of suppliers who work to store products and goods in the stores of the suppliers themselves, until the sale of these products.

Guide to Drop Shipping
  • How does Drop shipping work?

The business owner or Retail Company cooperating with a Dropshipping supplier that manufactures and / or stores the products, packaging the products and shipping them directly to the customer. As for you, “as a business owner,” you only offer the products to your store, set an appropriate price for them, market them, and win the difference between the price from the wholesaler and the price from which the customer bought from your store, while calculating the marketing costs.

Your online store in Drop Shipping is just an intermediary, between the customer (the buyer) and the wholesaler or the factory, and therefore the profits here are the difference between the selling price and the purchase price.

  • Examples about how Dropshipping works

Let me show you an example:

You choose any product available on Amazon that costs $ 50 and displays it on eBay or your online store for $ 55 and there is a customer who purchased the product and paid the required amount and added its shipping address.

You will purchase the product from Amazon, and then write the customer’s address on Amazon, and the product will be shipped directly from Amazon to the customer’s address anywhere in the world.

To clarify more, the Chinese Ali Express website includes millions of goods and thousands of merchants, or what they are called suppliers. Most of them support the Dropshipping.

After researching the product that we want, we contact the supplier and say to him that we sell the products by Dropshipping and we liked this product. Then we ask him to reduce the price and we can inquire about the payment methods that support and shipping methods as well, and suppose that the product was approved by us, for example, $5 Dollars.

Then we copy the product pictures, description, and everything about it. Then we put it in our store as if the product is our own with the addition of profit and let the final price be $10, for example. In addition, when anyone purchases this product from our store, we buy it from the supplier and we ask him to ship it to that person’s address and thus profit $ 5 as profit without the buyer’s knowledge that the source of the commodity is on Express.

For this, you must add real and existing products and have suppliers who are able to provide these products with all credibility, the suppliers are wholesalers, either factories or major commercial companies, and they are mostly Chinese due to the strength of the Chinese economy.

Another example, someone has an online store that run with Dropshipping system. This store offers a set of electronic products.For example, the price of an emergency charger in this store is $ 20. If someone orders this charger and puts the address and shipping information, the store owner will purchase this charger from a third source such as Ali Express or Ali Baba at a price of $ 12 and give the original merchant the shipping address of the customer who requested the emergency charger from his online store.Consequently, the owner of the online store earned $ 8 since he sold and shipped goods that he did not own in the first place. Moreover, any entrepreneur working in the field of Dropshipping must have a relationship with a group of suppliers and dealers to obtain discounts and special offers.

  • The most important features of Dropshipping
  • You do not necessarily have to own an online store to start Dropshipping:

Many marketers use the famous electronic stores as an alternative platform to display products. For example, you can use the eBay store as a platform to display products from Ali Express using the Dropshipping method. After an eBay visitor views your product and makes a purchase request, you make a purchase order from Ali Express; the product arrives at the buyer’s address.You can also use social media as a platform to display products.

  • In Dropshipping your store does not play a major role in the trade process, but is just a broker:

The main pillars of trade are the factory, the wholesaler and the retailer (this represents most types of online stores in general).

  • Dropshipping does not require a lot of capital:

As the owner of the Dropshipping store, you will purchase from the wholesaler after receiving the purchase order from the consumer. You do not have to keep any stock; this will not make you need a large capital to start, but this of course does not mean that there are no expenses related to the establishment of the electronic store, and marketing expenses that you should consider.

  • Dropshipping is a totally invisible process for buyer:
READ  20+ Best Dropshipping Site Platforms - Sell Online without Inventory

Your own store is the interface that the buyer will deal with, and the product is supposed to reach the buyer with its store name and logo on its cover. The buyer in the Dropshipping will not know anything about the wholesaler who owns the product.

  • Drop shipping made e-commerce process very easy and fast:

The simple idea behind Dropshipping, allows anyone with some simple skills to enter the world of e-commerce. This represents an advantage for you, but it is an advantage for all your competitors as well, and then this leads to a very high level of competition in the Dropshipping. This results in the inevitability of reducing the profit margin in order to obtain good sales.

  • You do not necessarily have to rely on a single source of products:

In Dropshipping you can view thousands of products from completely different sources, this is a very important advantage, as the diversity of products will attract more buyers, and help to achieve more sales.

  • What are Dropshipping Pros?
  • You do not need a lot of capital:

Perhaps the biggest advantage here is that it is possible to launch an e-commerce store without having to invest thousands of dollars in inventory in advance, traditionally retailers have had to purchase large quantities of the product to sell and there are no guarantees that they will sell them in the first place.

In Dropshipping you do not have to buy a product unless you have already sold and paid by the customer. Without major investments, it is possible to start a successful business with little money. So what if you were able to get a free online store as well?

  • You can start easily and without complications:

Dropshipping is the most profitable business opportunity for businessmen. The good thing is that anyone with a little investment can easily enter the market. It is practical and suitable for anyone wanting to start their ecommerce store in 2020.

With Dropshipping, you do not need to worry about managing or paying for the warehouse, packing and shipping, tracking inventory for accounting reasons, dealing with incoming returns and shipmen, continuously ordering products, and managingstock level.

  • Flexibility of the operating site:

Dropshipping can be run almost anywhere using internet connection. As long as you can communicate with suppliers and customers easily, you can operate and manage your business.

  • Low expenses:

Since you do not have to deal with stock purchase or warehouse management, overhead is very low.As you grow, these costs will likely increase, but they will remain low compared to traditional business costs.

  • Wide range of products for sale:

If suppliers store an item, you can list it for sale in your online store at no additional cost. This means that you do not have to pre-purchase the items you sell, which allows you to offer a range of popular products to your potential customers.

  • Easier to test:

Dropshipping gives you the ability to list and sell potential products before committing to purchasing a large amount of stock. Dropshipping is a useful investigative tool for both launching a new store and for business owners looking to test customer appetite for additional product categories, such as accessories or brand new product lines.

  • What are Dropshipping Cons?
  • Profit is low:

Because it is easy to start – and the overhead is so little – many merchants will set up a store and sell goods at low prices in an attempt to increase revenue. Since they invested very little in starting a business, there is no problem with low margin for revenues.

  • Shipping is complicated:

If you work with multiple suppliers – as most Dropshipping stores do – the products in your online store will be obtained through a number of parties and this complicates your shipping costs.

  • Dropshipping does not give you much control over the product itself:

The supplier has more control over the product itself until some suppliers can absorb changes to your business product. To make it viable and affordable for the manufacturer, any changes or additions to the product itself usually require a minimum order quantity.

  • Inventory related matters:

The most complicating of your shipping costs is that the products in your online store will be obtained through a number of parties if you work with multiple suppliers – as do most of the Dropshipping stores -.

  • Mistakes a supplier makes when fulfilling orders:

Middle and low-quality suppliers and processors will endlessly frustrate lost items, failed shipments and low quality packaging that can damage your business reputation.You have to take responsibility and apologize for these errors.

  • Competition is strong in Dropshipping:

That low barrier to entry means a lot of competition, with the most popular markets suffering more than others do and this is because very little capital is required to start a Dropshipping business.

  • Legal issues:

Although this is not a common problem for Drop shippers, but we feel it is worth noting that some suppliers are illegal as they claim, you do not know where these products come from.

  • How to start with Dropshipping

Many of us do not know how to start, and we all know that the start is scary and somewhat skeptical. However, what we do not know is that the most important is the cornerstone. The majority of the successful people who are in the Dropshipping market or others from different fields say just start, and then everything will be fine. Here we will show the most important elements that you need in order to start your business effectively in the Dropshipping.

  • You can start with your own store:

There are many solutions and options available to create an online store, these solutions differ among them according to cost and ease, but any of them can be relied upon to create an online store for the purpose of Drop Shipping.

This is the best way to start trading with the Dropshipping method, as you create your own online store, make subdivisions for it by categories, and customize it well. Then you bring productsto it according to the niche that you want to work on.

  • Choose the Right Dropshipping Supplier:

The supplier, the wholesaler from whom you buy your products, is the key to success in the field of trade by Dropshipping, and for this reason we decided to show for you the most important sites that provide you with a shipping service. You can definitely choose from this list any supplier of the products you would like to start Dropshipping easily.

This is the list:

  1. AliExpress – the world’s strongest wholesale and Dropshipping site
  2. DHgate – the best website for selling electronics by Dropshipping
  3. SheInside – The largest fresh and fashionable apparel supplier
  4. Tinydeal – Chinese website specializing in drop shipping for electronic devices and smartphones
  5. Dropshipdirect – a website that specializes in drop shipping and has thousands of suppliers and tens of thousands of products
  6. Tmart – a site with a lot of diverse products, including shoes, clothes, accessories, electronic devices, etc.
  7. DealExtreme – a popular and worldwide well-known wholesale website located in Hong Kong
  8. MiniInTheBox – Provides tech-friendly accessories at great prices
  9. NEDIS – Germany’s leading website in the global market with over 17,000 products on sale
  10. PandaHall – the best place for beads, clothes and accessories with over 30,000 articles
  11. BangGood – very popular Dropshipping site known for its great deals, affordable wholesale prices, multiple offers and discounts
  12. BigBuy – Europe’s award-winning best-selling website for Dropshipping
READ  What Is a Winning Dropshipping Product? (Featured Examples)

In general, there are several factors to consider before choosing a Dropshipping supplier:

  • It is always best to choose a Dropshipping supplier who is experienced, reliable and efficient. You must also know how long the supplier has been working in Dropshipping business before deciding on it.
  • Shipping providers with no geographic limitations are recommended so Ensure that the shipping carriers ship everywhere in your country.
  • Remember that lengthy shipping processes are not acceptable and, you need a supplier who offers shipping methods that deliver products faster.
  • The supplier you choose should have modern quality control systems that guarantee each product will meet customer expectations.
  • Make sure to take professional product photos from your supplier if you are not willing to invest money in product photography.
  • The supplier of your choice must provide a guarantee of its products so that these guarantees guarantee that the product will function as advertised within the specified period and that it will also replace the damaged products shipped.
  • We know it is legitimate to charge Drop ship fees, but it does not mean suppliers can charge you exorbitant fees. The order fees should not erode into your profit margins.
  • Choose suppliers who use the latest technology to manage their businesses. The supplier must also have a website that allows you to place orders and cancel them easily.
  • Select Products for Dropshipping.

What products can be sold through Dropshipping?

  • A good Dropshipping product must fulfill three important criteria, the first is that it is profitable; the second is that it is in demand and the third is that it is easy to ship according to its weight and size.
  • We recommend choosing products that can sell for between $15 and $200.
  • Having an ‘affordable’ product means you are more likely to sell high volumes that gives you more opportunities to get customer feedback, which is important for credibility.
  • We do not advise you to sell products for less than $15 as this makes it difficult to make profits and requires you to sell a lot of shares to make your investments worthwhile.
  • We also do not advise you to sell products that cost more than $ 200 because this means refunds can really sting.
  • We recommend that you strive for the profit margin for a Dropship product to be at least 20-40%.
  • The best Dropshipping product is that it can easily be placed inside the shoe box. If its size exceeds that, it is very likely that shipping costs may become prohibitive.
  • Always be sure to look for small, lightweight products to ensure that you do not encounter any shipping problems.
  • We strongly advise you to avoid as much as possible fragile, unstable products that can be easily broken in transit as this will lead to a deluge of returns and negative feedback.
  • Electronics is often considered in this category, especially if you acquire it from a supplier you are not familiar with. We therefore emphasize the need to ensure the quality and reliability of the supplier.
  • A great Dropship product generates repeat business and that means a customer who buys your product will potentially buy it again – either when it runs out or needs renewing.
  • We can advise you to buy health and beauty products, as they are known to run out quickly and one needs to renew them every time.
  • We recommend you to invest in high-quality photos and sales copies of your product listings, as it will definitely reap benefits for a longer period.
  • Be always aware of the products that are popular with the public and show them on your store.
  • Branded / Designed products have very low profit margins, which makes them a bad choice for Dropshippers.
  • You must stay well and truly away from selling counterfeit products in order not to sign yourself in a serious legal problem that you are indispensable and not to endanger your Drop shipping business from the start.
  • You have to be careful and stay away from branded goods at prices that seem too good to be true, as they will often be counterfeit.
  • We do not advise you to sell very competitive products so as not to make your market share small and this may sometimes lead you to price competition, which you want to avoid at all costs.
  • Dropshipping via social media:
  • We can create a special Facebook page for a specific product, category, or general commercial page, then we can bring products to it and share them on the page, but you must make advertising campaigns funded on Facebook and appeal to people interested in your products.
  • You can also create Instagram-funded campaigns for your products. Instagram is one of the best ways to advertise now and it gives good results.
  • Selling your products via Twitter, and this is a great new way. For example, you want to sell a cat-specific product; you must search for Twitter-specific cat pages and write to the owner that you want to advertise for a fee.
  • Marketing your product via e-mail, where there are sites that provide you with this service for a fee, of course, where you create a message with the product you want to sell, its photos and all the details, then the message is sent to a targeted mailing list.
  • Drop shipping via Amazon and eBay

Where you can make your own store in eBay or Amazon, and then transfer your products to it. Therefore, you can take advantage of the large number of visitors to these two sites. Nevertheless, there is a great competition between merchants and you must strive hard to take your place among them by bringing good products, cheap prices, good shipping and payment methods. That is because you will deal in abundance with most customers, who want from several things such as fast and free shipping.

  • Some common mistakes in Dropshipping you should avoid
  • Expecting that your products are going to sell themselves:

When you are Dropshipping, you need to put all of the time that you save on shipping and fulfillment into marketing and SEO to drive traffic to your store and make you sales. You always want to put a priority focus on quality customer service and giving customers a positive experience with the parts of buying process that you can control.

Do not let the idea that you will be able to set up Dropshipping for your store and then have an instant moneymaker on your hands fool you. Always remember that competition in Dropshipping Square is strong and takes some effort.

  • Excessive dependence on one supplier or failure to test suppliers:
READ  How to Use the Aliexpress Dropshipping Center: Full Guide 2020.

When you get the order, you need to examine it closely, considering the packaging, shipment time and so on, and make sure that everything is top-quality.It is a good idea to continue to place test orders on a rather regular basis. Achievement is very important for any online business, and you want to catch any quality slips before they become a problem.

  • Stressing about multi-location shipping on every single order:

If you burn energy on shipping prices for every order, you do not spend this energy on creating a better shopping experience, growing your store, marketing, etc.Instead, you need to take a look at past orders and use them to work out a flat shipping rate, or probably a tiered rate based on cart value.If you have set your flat rate properly, shipping costs will even out over time.A flat shipping fee removes confusion. Flat rate and free shipping also has been shown to increase conversion rates—one of the main reasons customers abandon their shopping carts is because of shipping costs.Therefore, you always need to step back and evaluate whether or not Dropshipping makes sense for your store, and this is required at every stage of your business.

  • Paying for access to a Dropshipping Supplier:

If a Dropshipping supplier wants you to pay in advance, it’s probably because this way they earn their money.He does not care about a long business relationship with you. In addition, you do not want suppliers like him. All you want in your business is suppliers that will take you because you will work together for years to come. The two of you will make money from each other; it is a beneficial business relationship.

  • Competing with offline retailers:

You can find competitors in your field for sale in offline stores who have special policies that only apply to them, so this probably means that they will get better prices from you and they are able to offer more value than you are.

  • Common questions related to Drop shipping
  1. Is it easy to open a shop and ship products?

Yes, of course, this process is very easy, especially for those people who have good knowledge and simple skills in using computers and the Internet and previous experiences in purchasing from the Internet.

You can also easily use multiple platforms to open an online store like WordPress E-Commerce. You can also use tools devoted to the design of the markets running the Drop shipping system, such as using both Oberlo and Shopify together.

  • Will the customer know that I am using Drop Shipping in my store?

To be honest, we cannot know if the user can know if your store is using Dropshipping business or not.

  • Why would people buy from my Drop-shipping store and not from original stores?

Simply, because you are the best in the sale! This is what we recommend! You must have experience in marketing and sufficient knowledge of how to sell your products. Therefore, you can convince customers. This is definitely the essence of online work, including Dropshipping.

  • How will I deal with the problem of late shipping?

You must be honest with the customer by placing notes on the expected shipping time for each product and placing the worst possibilities in the matter of late shipping time. Even if the goods were shipped in a short time, this thing will be counted as positive for you, and if the shipment is late, there is no problem. You really were honest with the customers in the first place.

  • How will I guarantee the quality of the products?

As mentioned before, it is up to you, there are many suppliers of the same product. In addition, you, as a person who wants to provide high quality products to your customers, you should be in contact and agreement with suppliers who provide high quality products.

  • How do I receive my profits from Drop shipping?

You can of course receive your money on one of the payment methods that will be added on the site, whether bank transfers or electronic transfers on PayPal or Pioneer.

  • What is the profit rate from selling by Dropshipping?

We cannot determine a specific percentage because the percentage of profits depends on the products chosen and the strategy that you adopt for sale, as well as on your marketing strength.

In addition, if we wanted to offer an example of this, AliExpress does not set prices for sellers, but you can negotiate with the seller directly and get a discount that may reach 20% to 35% of the offered price.

  • Is Dropshipping a legitimate business?

Yes, definitely, Dropshipping is a business just like any other business it is completely legal.

  • Is Drop shipping worth it in 2020?

As we mentioned earlier, hard work is always required to start a business, so if you want an easy job and do not make any effort, Dropshipping is not the ideal way to build a successful business online for you.

  • Important quick tips for beginners:
  1. When you display goods from the site that you subscribe to with the Drop Shipping service, it is a mistake not to follow whether the goods are still available at the main store. Either you cannot follow the availability of this service on a daily or weekly basis, at most.
  • It is better to provide a good price in order to be able to achieve high purchase orders. In this context, it is preferable to take advantage of the offers of the site and the main factory and present them as offers on your own store.

3- It is better to deal in high quality products for you that includes earning customers and not only making a temporary profit.

4- It is recommended that you order one of the commodities from the site you are promoting and deal with the Drop shipping service to test the quality of his products and guarantee customer satisfaction.

5- It is recommended that you deal with wholesalers and offer wholesale products as well, as this achieves a distinct profit margin.

Conclusion:

Therefore, this concludes our comprehensive guide to Dropshipping. If you have made it here, you now know how to set up and kick-start your own Dropshipping business.Working in the field of Drop shipping requires a lot of time, research and good and continuous planning. I believe in the results of this work compared to other areas of work via the Internet. In addition, it does not require large capital and will provide you with a wonderful experience to know how electronic stores work in general. Moreover, many resources and tools can help you on your journey with the world of Drop shipping business. All you have to do is not to stop searching and asking.

Best Luck for all!

Sell The Trend

1 thought on “2020 The Ultimate Guide to Drop Shipping – What is Drop shipping: What it is and How it Works”

  1. Pingback: Learn Dropshipping and Ecommerce For Free in 2020. - Dropshipping Teacher | Dropshipping For Beginners

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top