Dropshipping is a business model derived from traditional e-commerce. The main difference is the possibility to sell online without having stock or the need for initial investment.
You may wonder … How is this even possible?
Well, online sellers sell through the Internet, either their own website or platforms such as Shopify, eBay or Amazon among others, the products of other suppliers. These sellers copy the information of the products of their interest and put them on sale, and only once the product has been sold, forward the order to the supplier who sends the product directly to the final buyer. This business model allows the dropshipper to sell products without the need to have stock or worry about storage or shipping costs. The fact that the product is transferred only once is sold avoids the need to invest in the merchandise beforehand.
Who would buy something that sells for a lower price somewhere else?
We all know that time is money and time is not abundant. We don’t always have the time (or the desire) to compare prices on different websites, so most people who want to buy something online follow these steps when making an online purchase:
- They browse through known platforms and marketplaces such as eBay or Amazon searching the item of interest.
- They buy the product of their choice at a price range that seems “appropriate” to them. But to be realistic… how many of us would know how to price products like a flowerpot or a leash for your pet? Let’s take as an example that the product purchased has a cost of $15.
That’s where the famous role of the dropshipper comes into play. It charges the $15 and forwards the order to the supplier:
- He goes to the website of the supplier where he pays $ 8 for the same article, the difference being his own profit.
- Purchases the product by entering the shipping data of the final seller for the shipment to be done directly to the final owner. This way the product he has sold is delivered to the buyer without ever going through his hands.
In this way, you have achieved a profit of $ 7 without even seeing or touching the product sold.
Let’s now imagine for a moment that this same process happens with thousands of products available in the online store, we can get a general idea of the benefits that can come to generate.
|Inventory||Requires own storage||The supplier has the stock|
|Ordering and shipping||Prepare deliveries and shipping||Direct shipping from the vendor|
|Initial investment||Requires previous purchase of the stock||No purchase until sale|
Why is dropshipping so attractive?
What makes dropshipping so attractive – and so competitive – is the fact that anyone can do it. All you need is Internet connection.
It’s very important to be clear that although it’s within everyone’s reach, it requires a certain amount of patience, time and dedication.
It’s time to put an end to the myths of ‘start selling today and earn $ 30,000 tomorrow from your sofa’. All in good time, and to a certain extent. As any business requires prior knowledge and study so it is important to keep up to date and be informed of what to sell, how to sell it and at what price.
There are many selling platforms through which you can start selling, from Hustle Got Real we will keep you up to date on the advantages and disadvantages of all of them and will continue to give you tips on how to get started.
Here are some hints to keep in mind when you get started, we’ll tell you more about it on our blog!
- Choose the right product and your niche.
- Negotiate agreements with the suppliers.
- Do not leave aside the SEO of your store.
- Keep your client satisfied! Your store reviews will be the key to your sale.
Recommended dropshipping suppliers
Take a look at our recommended suppliers and start choosing your products for sale.