What is Dropshipping?

Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the drop shipping model, it purchases the item from a third party and has it shipped directly to the customer.

In other words you sell products that you do not own or handle yourself. As soon as you make a sale, you will relay the order to your dropshipper who will then proceed to ship the product to your customer.

Since you don’t need to stock or handle the items you are selling, it’s possible to start a drop shipping business with limited funds but it will require an immense amount of hard work.

Dropshipping businesses act as product curators, selecting the right mix of products to market to customers. Remember, marketing is a cost you incur, in both time and money, helping potential customers find, evaluate, and buy the right product. You’ll also have to include the cost of providing customer support whenever there’s a product or shipping issue. Last but certainly not least is the original price that your supplier sells the product for.

Is dropshipping profitable? Yes, dropshipping can be profitable to merchants. Dropshipping is a low-risk business model that allows you to sell products to your customers without incurring huge running costs like a wholesaler would have.

Hazards include high shipping costs, low profit margins, and little quality control. Drop shipping on its own is a perfectly legitimate method of order fulfillment. Just remember to protect yourself with a Drop shipping Agreement Contract.

How do I start dropshipping for beginners?

1. 1. Choose where to list your items for sale.
   2. Research a dropshipping supplier that can fit your needs.
   3. Research the items you plan to sell and the market for them.
   4. Start listing your items online.
   5. Collect orders and send them to your supplier.
   6. Automate your business.

Suppliers can normally provide some very good quality pictures of the product for you to showcase in your dropshipping store.

The best dropshipping tools are:

• • Oberlo — Shopify plugin and directory.
  • SaleHoo — Members-only database of 8,000+ suppliers.
  • Spocket — Shopify database with good reviews.
  • Wholesale2B — Versatile supplier and dropshipping hub.
  • Inventory Source — Time-saving dropshipping automation tool.

Can you dropship and sell your own product?

Dropshipping is a great way for you to start your own business. Instead, with dropshipping you employ the services of a third party company to produce your products. They then package and distribute them to your customers directly, meaning that you can sell your own products without even having to see them.

Dropshipping is a retail fulfillment method in which an online store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product. Here’s how dropshipping works:

Setting Up: The retailer (dropshipper) creates an online store and selects products to sell, typically from suppliers or wholesalers who offer dropshipping services.

Listing Products: The retailer lists these products on their website or online marketplace (like Shopify, Amazon, or eBay) with their own prices and descriptions.

Customer Orders: When a customer places an order and makes a purchase from the retailer’s store, the retailer forwards the order and customer details to the dropshipping supplier.

Supplier Fulfillment: The dropshipping supplier then picks, packs, and ships the product directly to the customer on behalf of the retailer. The retailer does not handle the product.

Customer Receives Product: The customer receives the product with the retailer’s branding and packaging, often unaware that it came from a third-party supplier.