How To Start A Profitable Dropshipping Business

Although there are numerous business opportunities on the internet, finding a profitable online business has been a big challenge to many people. Many have missed lots of money-making opportunities due to a lack of proper knowledge. Others have lost fortunes in the process of investing because of ignorance and desperation. However, there are lots of positives with regard to investing and making money online. You just have to acquire the right knowledge and follow the footsteps of those who are already succeeding in the business.

In the last few years, more and more people turn to the internet in a hope of making some extra money. Anything from ridiculous clicking on ads or reading emails to opening your very own hosting company is promoted as the best way of earning money online. While some of these methods may provide you a decent online income, most of them never work.

Recently, a relatively new method is also being promoted as a good method of making money online, called dropshipping. But what exactly is dropshipping? Does it really work? What are the benefits and are there any risks involved in it?

In this article, we will try to find the answers to all of these questions by exploring the world of dropshipping.

What is dropshipping?

Dropshipping is a supply chain management method in which the seller accepts payment for an order, but the customer receives the product directly from the manufacturer’s warehouse. In a dropshipping business model, the seller acts as a middleman between the manufacturer and the customer. His profit is the price difference between the wholesale and retail price of the item sold.

Can dropshipping really work? Yes and no. for some people it works very well, but for others, it is a complete fail. There are many factors involved in making the dropshipping business model work, such as:

1.The product is sold

Usually dropshipping works only with high-quality products. If you try to sell a low-quality product, then your customers will request a replacement or refund so you will be at a big loss, since the shipping cost for the reverse logistics is going to be paid by you.

2.The price of the product

If the product has a competitive price, then drop shipping will work, but if your supplier will ask for a higher price than your competitors then the dropshipping business will not work for you.

3.Delivery time

If your supplier can not ship the products fast, then your customers will be unsatisfied, leaving you bad reviews and sinking your reputation.

4.Supplier honesty

In a dropshipping business, a good supplier means very much. There have been many cases where suppliers cheated the sellers, sent defective or cheaply made products to the buyers, so it is very important with which supplier you start the dropshipping business

What are the benefits of a dropshipping partnership?

Well, there are many benefits in a dropshipping partnership, but the most important ones are:

1.Lack of physical inventory

Since you sell using the dropshipping business method, all the products will be stored at your supplier warehouse, saving you lots of money on maintaining stock in a warehouse.

2.Increased products in your online store

Since you do not store the products you sell, you are not limited by your warehouse size in selling as many products as you want, on your online store. You may even sell products from multiple suppliers in your online store.

3.Reduces shipping prices

Usually the manufacturers that do dropshipping get lower prices on shipping prices because they ship thousands of products every day and they get better shipping quotes from the shipping companies.

So far so good. It looks like dropshipping is the right thing to do when selling online. But just as with anything that has a positive side, dropshipping also has a negative side. So what are the risks and hidden costs involved in a dropshipping partnership?

First of all, the main risk involved in a dropshipping business is that your supplier may scam you. He may send you a different product or even a defective product, and later claim that the product broke during transportation. And the cost of sending the product back would be covered by you, the seller. Another major risk comes from the buyers.

Buyers can scam too. They may receive the product, and later claim that the transaction was not authorized by them and that someone used their credit card without permission, so they would file a chargeback on you leaving you with no money and no product. Another downside of dropshipping is that the wholesale price of the dropshipped products is higher than buying them in bulk, so this is a point also worth focusing on.

What Makes Dropshipping Product Business Model Succeed?

The key advantage of choosing a drop-ship product business model for your existing or prospective online storefront is that the drop ship company will stock, store and ship out the products for you, thereby saving you precious time and energy.

In other words, every time that a product is sold via your website, the drop ship company will take care of extracting the needed item, packing it up for shipment, and then sending it on to the client who ordered it.

By utilizing this clever method of streamlining your online business, you’ll be able to focus on other aspects of running your day-to-day operation, while leaving the packing and shipping to the dropship company.

Disadvantages Of Dropshipping Business

Of course, dropship services are this type are not free. Therefore, it’s vital to comparison-shop for the most affordable and reliable dropship services. However, when you work with a reputable company, you’ll find that drop-ship services are actually extremely cost-effective. Because paying for dropship services is really the only “con” involved with the entire process, getting a great deal on your preferred services will ensure that you enjoy practical business support, without any drawbacks.

Since time is money, outsourcing the task of packing and shipping items to your chosen dropship company may actually be a great way to save cash in the long run. That’s why today’s smartest, savviest entrepreneurs are choosing to work with stellar dropship companies that offer affordable rates, as well as products that fit their niches to perfection.

You Need a Dropship Service that Fits Your Online Niche

In addition to finding an affordable dropship company, you must ensure that your preferred dropship service offers the sort of merchandise that you really want to sell. For example, if you’re interested in selling the most impressive brands to your online clientele, you will need to find a dropship supplier that can offer premier brands that have the instant “name recognition” that your customers will look for. Conversely, if you want to sell generic products which offer supreme value to your online clientele, you must seek out a dropshipper who can offer this type of inventory.

The basic business model isn’t complicated. When you sign on with a dropshipper, you will be able to advertise their products via your website. The dropship supplier will give you images that you may use to promote your online inventory. Then, when a customer buys what you’re offering, the drop ship company will spring into action, by packing and shipping out the item.

Dropshipping is an easy and uncomplicated way to streamline any type of online enterprise. If you want to sell products online, but you just don’t have the space to store an inventory (or the time and energy to ship products out yourself), you’ll find that dropship services make it so easy to get your business up and running.

Before selecting the right dropship service for you, do a little shopping around. Once you’ve found a reputable company, which offers the right products for the most affordable prices, you’ll be ready to make the task of running an online business so much easier

Different Methods Of Ddropshipping

Most online entrepreneurs use the services of a drop shipper for sure because wholesale drop shippers give the most benefit by far in the e-commerce industry. When you are ready to learn about the process of drop shipping, then you are almost ready to start your own online retail drop ship business.

There are three important things that you must know about in detail so that your chosen online venture will be a success. A drop shipping business needs to have a reliable drop ship supplier, a great niche and a top notch marketing skills. If you find the first two things then all you have to do is enhance your marketing expertise.


A drop ship supplier must be reliable because they will be the one providing your business with products. Since they will deliver directly the items to your customer, you will not have the chance to check the items yourself and therefore trust is very important. If they deliver bad quality merchandise to your consumers, the bad business will reflect on you and not them. Retaining clients when this happens is a very long shot and bad reputation spreads fast. This is the reason why you must find a trusted and dependable drop ship supplier.


Your retail drop-ship business must be competitive and you can do this by having a competitive niche. A product that is in demand will make selling it easier because people want and need it. Selling something that people will think twice about buying does not make good business sense. So stick with a niche that is basic and in season. Explore the clothing and electronics niche because this is something that does not go out of date.

Marketing Skills

Lastly, enhance your marketing skills. Create new ways so that consumers will come and visit your site. Once they become your customers, make sure to find ways to make them happy in able to retain their loyalty. Find great deals from your dropship supplier so you can pass them on also to your consumers.

The importance of good communication in dropshipping business

Poor communication skills and protocols will do you no favors in the dropship. Because of the importance of business relationships in this area, communication is a skill that you must have in order to be successful. When communicating within the dropship you should not just concentrate on getting your message across. You need to also ensure that the other party has understood what you are saying and has a realistic chance of implementing the requests that you have made. This sort of communication cycle is not unique to the drop-ship business but affects all other areas of our lives.

Before you even make a strong case for entering the drop ship business, you have to be prepared for all the communication barriers that may come your way. You also have to take positive steps in terms of making sure that your program fits in with the communication requirements of the business. There will be many challenges that relate to the way in which you deal with your customers and clients. However, if you have made communication a key tenet in your business plan then you have every chance of succeeding.

Good communication systems involve some effort and expense but they are worth their investment when it comes to securing your profit streams. As a minimum, you should have a working telephone line and a business email account. If possible you should also have a website where you can eventually start promoting yourself. The level of advancement in your communication systems will depend on your needs and capabilities. At the same time, you should always factor in the needs of your customers.

Use communication as a tool for building your dropship business. For example, if you have an inquiry about your products, do not wait for ages before you respond. If you do this the customers will move on to another more serious supplier. If you anticipate that there are going to be issued with the supply chain, then you need to make arrangements to increase the communication channels with the end-user.

At the end of the day, the type of communication skills that you employ will be crucial to the success of your dropship business. You will know that you are a bad communicator when your suppliers suddenly terminate the business relationship or the customers put some unflattering feedback on eBay about your dropship business. Good communication can prevent all these problems.

Building a reputation

When you are involved in the dropship, your reputation will be one of the most valuable assets that you retain. It will sustain you in difficult economic times and will ensure that your customers express a certain preference for your services. Likewise, if you sully your reputation then your life within the drop-ship business will be severely limited. You might even end up in the courts for fraud. One can never be too careful when dealing with a sensitive venture such as the drop ship business.

If you are in the business it is important that you are willing to ship items at the consumer’s request. Do not become dazzled by the attractions of quick profits at the expense of integrity. If there is a supply problem then you need to be honest with the consumer and make every effort to ship the items ordered at the earliest opportunity. Lies and confusion will not make the problem go away. It will just leave the customer with the impression that you either do not know what you are doing or are just plainly dishonest.

The key to maintaining good reputation and standards is to move within circles that value those principles. If you are in a dodgy scheme that requests retainers from its members then you will be tempted to break the rules in order to make a profit. Those little profits that you make from dubious practices can cost you your place within the drop ship business. If you happen to discover at a later stage that you have mistakenly entered into a bad scheme, then you need to devote your efforts into getting out. Guilt by association is not uncommon within the drop ship business.

Customers have to come first in any business enterprise because they are the backbone on which success is built. When they make an unusual request in terms of shipping, you should first check that it is legal. You can then try to accommodate them. That way they will know that you are delivering services that meet their needs rather than your expectations.

It is imperative to maintain accurate and proper records when running a drop-ship enterprise. Things such as invoices and receipts are essential for good business practice but also the law. Make sure that the items you are sending have the appropriate paperwork and comply with the legal standards of both jurisdictions.

10 Questions You Should Ask Your Supplier

What attracts most people to a drop shipping model type of business is the fact that it involves a low start-up cost, zero inventory headaches, the absence of physically shipping, and the freedom to spend more time marketing to mention but a few of the benefits associated with drop shipping.

However, pivotal to the success of your dropshipping business is the relationship you have with your supplier. I have known suppliers who disappeared into thin air without informing their clients and left them with the headache of finding another supplier. By the way, I advise all my clients to always find a second supplier, just in case one of your suppliers goes bust, runs out of stock, or is proving problematic.

There are 10 key questions you need to ask your supplier to avoid unnecessary hassles down the road. These questions will guarantee you know what to expect in a best or worst case scenario.

1. Are you a registered business and how long have you been in operation?

2. Do you have a terms and conditions policy and can you send it to me?

3. Who do I contact if I have a problem?

4. What is the best way to contact you? Phone or email?

5. What is your returns and refunds policy?

6. By what method can I pay you for orders?

7. How often will you send me an update of inventory you have?

8. What are your shipping rates and do you ship international?

9. How do I close an account with you?

10.Where can I get product images and description?

I believe you should have an answer to the 10 questions above from the supplier to your drop shipping business. If in doubt about any of the answers they give to the questions above, then I would advise you quickly move on and find someone else. While a dropshipping business affords you a low cost entry into the e-commerce world, be careful you have a reputable and honest supplier who will not act in a manner to tarnish the reputation you are trying to build online.

Also, ask them about the authenticity of the products they sell and how they get them. I have personally been scarred by a dishonest and inefficient supplier. I ignored the signs after I had dealings with him and received some answers to the question above. The same thing should not happen to you and I would love to show you how.

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