You can do online business in many ways, for instance, affiliate marketing, direct sales, dropshipping etc. You can do online business through third party sites like ebay and Amazon, or from your own site. If you are selling through your own site, you either refer buyers to the ecommerce sites and earn sales commissions, or sell directly from your own site. Referring buyers to other ecommerce sites is called Affiliate Marketing. Alternatively, you can also sell through your store without actually acquiring or manufacturing products. What you will be doing is selling the product from your site and then sending the shipping info to the store that is actually selling the item. This is called dropshipping.
What Exactly is a Dropship Business?
Dropshipping is a business model where you sell products from your online store without actually manufacturing products or acquiring products. In other words, you do not have to build up your inventory for dropshipping business. You sell products through your store, however, the supplier will deliver the products to the buyer directly from his warehouse on your behalf.
How to Start Your Own Dropship Business
If you want to sell online and become an online entrepreneur, dropship is the best to get started with your online business. Actually, dropship is not only a great business for new entrepreneurs but also for pros. The reason why dropship is best is that you do not have to spend money to manufacture or acquire products. Here are some of the benefits of dropship business:
Low start-up cost: You do not have to maintain an inventory and do not need a warehouse to store products.
You do not have to bother with shipping as the supplier directly ships to the customers on your behalf.
Making Money on Autopilot. You do not have to spend a lot of time for product development, acquiring, storing, and shipping as you are not dealing with any of these. All you have to so is forward the buyer’s shipping address to the supplier.
Easy to Get Started: You build your store and start promoting on social media and search engines and you are done. You do not have to do a lot of hard work.
How to Build a Dropship Business
The most important thing for dropshipping business is creating an online store. The online store is a website with products listed.
In order to create a website with the products, you need ecommerce platform. There are a lot of ecommerce platforms, however, the most popular are shopify and woocommerce
Shopify is a premium ecommerce platform that can be used for a dropshipping store. You can try for free for 14 days, after your trial ends, you will have to pay $360 per year. You also have to pay for addons like oberlo in order to build products on your store. Therefore starting dropshipping with shopify can be costly.
Woocoomerce is a wordpress extension which is available for free. You can find a lot of woocommerce plugins (free and paid) to build products on your store.
If you do not want to build your own dropship store, you can also buy established or a starter site on Flippa or ExchangeMarketplace.
How Much Can You Earn From Dropship Business?
How much money you can make depends on how popular is your store and how many products you are selling. If your shop has a lot of buyers, you can make a lot of money. How much money you can make from a single product depends on the price you are charging for the product. Generally speaking, your listing price is higher than the price supplier is charging for the product. For example, if your supplier is charging you $10 for the product, you might add $5 extra and sell the product for $15. When a buyer buys, he sends you $15, you keep $5 and send $10 to the supplier. You made $5 from the product.