A Handy Guide to Dropshipping

Never heard of the term dropshipping before? Let’s take a look at what the term means and how being a dropshipper is a lucrative way to make a living nowadays. It works when buyers purchase products from a wholesaler and has them shipped directly to the customer, rather than having to store the goods and forward them on yourself. This means that the wholesaler is responsible for the handling, packaging and delivery of the product. It is a way of reducing the work of the middle man in a transaction and you are that middle man.

The Benefits of Dropshipping

The process is a very interesting one and due to its simplicity, it is proving to be hugely popular. Not all dropshippers will operate in the same way as there are different options available but whichever module you choose, dropshippers can help you get good value for money as a buyer. The advantages of being a dropshipper go deeper than just making money and include all of the following:

  • It is very low risk
  • It allows buyers access to a large selection of goods
  • It lowers the investment needed to start up a business
  • There is no need to operate a handling location, which saves time and money
  • It is highly scalable

How Easy is Dropshipping?

Running any type of business requires hard work and commitment, but the risks when using a dropshipping business module are dramatically reduced as you don’t have to hold on to expensive stock that may not sell. It is certainly a viable way to make a living running an online business and it has the potential to be very profitable, as long as the products you are selling are popular, affordable and visible.


How Do I Begin?

There are two main options to choose from when starting a dropshipping business, namely:

  1. Use websites like Amazon or eBay
  2. Create an ecommerce website

The second option will usually offer you the most success, as it allows you to build a long term business that is affordable to set up, instantly profitable and highly scalable.

Submitting your orders to the supplier is usually done via email or over the phone and some of the larger suppliers may require you to submit an order through a specially set out CSV or XML file.

Paying the Supplier

One thing that any good dropshipper will need to learn is how to pay the supplier. First of all, it is a necessity to have a business credit card (Visa or Mastercard) and this will go on file with the supplier so they can take payment whenever an order is processed. However, once a relationship has been established, the supplier may be prepared to build up a bill that is usually paid off in bulk payments in 30 days.

Dropshipping is a good way to make a living online and with minimal investment needed and very low risks associated, it is a hugely appealing concept to anyone looking for an additional income or to make a long term business module.

Leave A Reply