What is dropshipping? How it’s done? | ListList.com

Online merchants are constantly trying to make money by trying new trading routes. In this process, some methods work and others don’t. Despite this, dropshipping (e-commerce without stocks) has become very popular lately, emerging from e-commerce models that do not hold water. Thus, everyone began to wonder what is dropshipping. In this list, we have collected answers to the questions you are interested in, for example, what is dropshipping, what is the logic of dropshipping, does it make sense to learn how to dropship, and is it possible to make money with dropshipping? First of all, let’s start by answering the question of what is dropshipping.

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What is dropshipping?

Dropshipping, which means dropshipping or dropshipping for e-commerce, is a business model that allows merchants to sell online. Suppliers play a leading role in this business model. The seller lists products that he does not store or store on the e-commerce site. The buyer orders goods directly from the seller. The received order is transferred to the supplier or manufacturer. After this stage, the supplier takes over the shipment of the goods. The supplier sends the goods ordered by the buyer from its warehouse. Thus, the supplier does not engage in marketing, and the seller sells without production and storage. The profit from sales is divided between the parties in accordance with the agreement between the seller and the supplier. In this business model, the seller acts as a link between the buyer and the supplier. Now that we have understood what dropshipping is and what is not, let’s continue.

How is dropshipping done?

Entering this business model is a low-risk process. The hardest part is getting your products to grab attention and sell. The first thing we need to do; is to do your research to find the supplier or manufacturer that is right for you. Once you have found the right supplier, you can proceed as follows:

• First you need to decide on the list of products that you want to sell.
• In order for products to be displayed on your website or online store, you must integrate XML with your vendor.
• In order for your products to be ready for sale, you must set their prices, descriptions, and images.
• To increase sales of your product and grow even more, you must apply the right marketing strategy.
• When a customer buys your product, this information is shared with your supplier. The supplier then packs the goods and sends them to the buyer.
• The profit received in accordance with the contract that you have entered into with the supplier is divided.

Since there is no need to store in Dropshipping, it is much easier and faster to open a store and sell on e-commerce sites.

Advantages and disadvantages of dropshipping

Advantages:

• It has low initial capital and low workload.
• There are no costs for suppliers such as production, storage and shipping.
• There is no need for large organizations, it can be managed by one person.
• Since it does not require much capital, the risk ratio is low.
• It is possible to work with many suppliers operating in different sectors at the same time. As the number of suppliers increases, so does the range of products.
• The seller is only responsible for the goods sold. The supplier bears the storage costs.
• There is no need for courier agreements as the supplier ships the products to the customers.

Flaws:

• Since this is a business model based on commission logic, the profit is small.
• Entrepreneurs are numerous because they require little capital. Therefore, we have to compete with many suppliers.
• From time to time you need to lower the prices of our products in order to stand out. This will greatly affect your earnings.
• Since you are not the person who physically deals with the products, it is difficult to ensure that each product meets quality standards.
• Sellers must resolve all issues that customers experience, including issues that are the responsibility of the supplier.
• At the same time, mistakes made by the supplier during the delivery process negatively affect the seller.
• The seller is obliged to listen to the buyer who has problems with the purchased goods.

How to choose suppliers and products in dropshipping?

The choice of suppliers and goods is quite complicated. To simplify this process, you need to use the dropshipping market.

Supplier selection

• Situations such as fraud often occur in this business model. So good research is needed.
• Instead of working with dozens of vendors, it’s much more profitable to work with a few you trust.
• Read online reviews about the supplier and the products they supply.
• Meet with the supplier face to face before entering into any agreement with the supplier. Also ask for product samples.
• Find out details such as packaging and shipping that the supplier is responsible for.

Working with the right supplier or suppliers will increase your sales opportunities and allow you to grow in this business.

Product selection

Millions of products are sold online. Therefore, the choice of goods will be very difficult. Before choosing a product, we recommend that you check out the popular or top-selling products on the Internet.

• The first step is to define a profile of a client to whom you will sell well. Because in dropshipping, narrow markets and the mainstream may not bring good profits.
• To avoid problems such as copyright infringement, be sure to obtain the necessary approvals from suppliers before making products ready for sale.
• You can select products that are sold over and over again to cash in on the release. Cleaning products are a good example of this.
• With good research, you can turn to products that you find promising.
• Sometimes products go out of style. In such a case, you can change suppliers and products.

Dropshipping Platforms

There are not many e-commerce platforms where you can dropship. We have listed some of them below.

• Amazon
• n11
• AliExpress
• trendyol
• etsy
• all here
• eBay
• gone

Does it make sense to learn dropshipping?

Some of the people who have or have not received dropshipping training may succeed with this business model while others fail. Of course, it is important to do research and get a good education before you start working. However, some tutorials lead to fraud or misdirection. For this reason, it is necessary to do a good research before taking training from a person or place on this topic.

Can you make money with dropshipping?

Dropshipping is a low risk business model. However, while some people make good profits, others suffer losses. Because this business model is very competitive. However, the choice of suppliers and products must be made correctly. Therefore, as in any business, there are various risks in this business model. For this reason, it is necessary to do a good research and choose the right supplier and product.