Ever thought of trying out online business ideas by becoming a dropshipper but don’t know where to start? Or, are you interested in trying a way to make money from the internet by running a dropshipping business but don’t understand the concept?
Don’t worry, we’ll cover everything in this article, complete with an explanation of what Dropshipping products is and preparations for starting to become a dropshipper. The steps that we explain below are also quite easy for beginners to follow, you know. So, let’s get started right away!
What Is Dropshipping?
Dropship is a sales system where the dropshipper sells products from suppliers directly to buyers without having to stock up on the goods first. The packaging and delivery process to the customer will be carried out by the supplier, but the sender’s name uses your name as the dropshipper.
Then, what is a dropshipper? A dropshipper is a party that acts as a seller, intermediary for consumers and suppliers in the process of buying and selling products.
So, the dropship business is a business model that is carried out by selling supplier’s products at a higher price, but shipping is using your name.
The way dropshipping generally works is like this:
- You raise the price of the supplier.
- Customers buy products from you.
- You order the product from the supplier.
- The supplier sends the product to the customer.
- You receive an advantage.
Apart from the proliferation of dropshipping, the dropship business has its own advantages and challenges that can be taken into consideration.
Here are a few things you should know before jumping into the world of drop shipping.
Drop shipping advantage
Following are the advantages of being a dropshipper:
1. Easy Enough for Beginners
The first advantage of dropshipping is that you only need a gadget and a stable internet connection to start a dropshipping business. You do not have to follow complicated business procedures or follow special conditions from other parties.
2. Low Business Risk
Furthermore, the advantage of being a dropshipper is that the risks that may arise are quite low. The only thing to consider is that you have to choose a trusted supplier, especially in terms of communication. Because, you have to ensure the availability, conditions, time, and method of product delivery to consumers.
2. Small Business Capital
You don’t need to think about inventory costs or hire people to manage this business. Business capital will be much smaller than expected. The only cost you need to think about is how high you need to set your profit margin from the price set by the supplier.
4. Many Product Choices
Then, another advantage of dropshipping is that you can sell various products from many suppliers. Because you don’t need to stock up on goods, you can directly sell many types of products to consumers.
5. Flexible
Because business can be done via a laptop or cellphone, you can work anywhere. However, make sure you are always alert to communicate with suppliers and customers to ensure matters related to products and shipping.