Probably you would have heard of dropshipping, which is a brand new method of making money online without really putting any money up or without holding any inventory. Dropshipping seems like an elaborate system, but it’s quite simple. Below, you will find what is dropshipping all about, how it does it works, its pros, cons, and more. So keep reading!
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What is Dropshipping?
Dropshipping is simply an eCommerce fulfillment method. Traditional eCommerce operations require you to store and deliver the products that you sell. Dropshipping is much simpler, you don’t need to stock inventory or worry about delivery charges. That will be taken care of by your supplier. People order products through your store, you will purchase them from your supplier and ship them to your customers directly from your supplier thereby gaining profits. That is it!
How Does Dropshipping Work?
You have your supplier, so that’s you are going to be purchasing wholesale from. Remember, there are two different prices inside namely wholesale and retail. Wholesale price is what you, the seller is buying for and retail price is what you are selling for. So your customer over here buys products for the retail price and you buy the same from your supplier for wholesale price.
Here’s how the system works. First, you purchase or you find the product from a supplier like AliExpress, eBay, or any other dropshipping company. Then you list it on your dropshipping store. For instance, you buy a product for $2 and you’re selling it to your customer for retail say $12.
The next step is the customer buys the product from you. So your customer goes to your store and buys it for $12. You take that order and you send it to your supplier. So once the supplier has your order, what they do is directly ship the product to your customer.
What this means is, throughout this whole process, you are not touching a single piece of inventory. All you are doing is just hosting this service and driving the traffic to your store and then you are sending the order from your store to the supplier and they take care of the rest. Thus dropshipping is very simple and very easy to do.
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How To Find Trending Dropshipping Products?
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Pros and Cons of Dropshipping
Dropshipping is a great way to sell products online. However, it does have its pros and cons.
Pros
- It is very easy to get started fast
- No up-front inventory cost required
- You can easily test new products
Cons
- No quality control over products
- Long shipping times for orders
- Need more customer support
- Refunds tend to be a lot higher
Conclusion
Dropshipping seems to turn up in a lot of places. But attaining success here requires some effort. Though the business model has advantages, it has few complexities too. You should be ready to face those and overcome the challenges so that you can really gain lots via dropshipping. Also making use of AdSpy can give you the details about the tricks and tactics of your competitors. Eager to find those? Redeem our 100% verified AdSpy Working Code AFFSAVE immediately!