What is Drop Shipping
We're going to talk about Drop shipping, what it is, and how you can get started. I'll also give you four actionable steps to start your own Drop Shipping business today.
So let's say you've been thinking about opening up your own online business, but you don't know where to start. You don't know what you should sell. You don't have any money to invest in products, and looking around, you don't have any room for inventory.
Well, that's what Drop Shipping is all about. You see, with Drop shipping, you can sell stuff online without the products ever being in your hand. All you need is a computer, an online store, and a basic understanding of how to market and sell online.
Here's how it works. First, you find what you want to sell from a supplier and then list that product on your website at a price you set. Next, when someone places an order on that product, your customer pays you the retail price you've set and you make a profit.
Then you'll place the order with your supplier at wholesale price and have it shipped directly to your customer. So let's say you found this watch on a supplier's website for $10. You would then list it on your own website for $30.
And when the order comes through your website, you would then place your order with your supplier, using your customers information, keeping the $20 profit and having that product shipped directly to your customer.
That's it. Now, I know what you're thinking. Why wouldn't somebody just order the watch directly from the supplier's website? Well, there's a couple of reasons. First, it's a very big Internet, and customers may not know about the supplier to buy from them directly.
Second, when people buying things, they're not just buying into products, they're buying into the marketing, positioning, trust, brand and lifestyle these products represent. With Drop Shipping, you can focus on marketing your products and saying the right things at the right time and on providing real value to the right people, because you're not warehousing any inventory or dealing with most of the other challenges that come with running an ecommerce business.
Now, a couple of challenges that do need to be considered when Drop shipping are finding incredible suppliers with good quality products and making sure you have visibility into your customers fulfillment process.
Honestly, you can find suppliers on your own. However, when you're drop shipping completely on your own, you can end up spending a lot of time researching and negotiating with suppliers to guarantee your customer satisfaction action.
Another option is a tool like Oberlo or eBay, which with a few clicks, gives you access to millions of products to sell and has dozens of features to make your life easier, like monitoring inventory levels, automatically, calculating profit margins, fulfilling and tracking orders, monitoring shipping status, measuring delivery
performance, and a whole lot more.
performance, and a whole lot more.
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