Dropshipping allows college students to become active participants in the worlds of e-commerce, offering the flexibility to manage custom papers written and keep track of inventory seamlessly.
This article will discuss the “dropshipping” business model and how to succeed in the highly competitive world of ecommerce.
An international college student can open an e-commerce shop in 2018 with ease. E-commerce offers students the opportunity to create a business that suits their busy schedules and finances.
You should be able to understand the following information by the end of this article:
- Dropshipping: What is it? How does it work?
- Here are some things you should know before you start dropshipping
- Dropshipping: The Pros and Cons
- The Supply Chain
Dropshipping: What is it?
Dropshipping is a popular model for e-commerce because it removes the stress and hassle of shipping and managing.
Dropshipping is a model of retail fulfillment where the wholesaler ships the product directly to the customer.
E-commerce entrepreneurs don’t keep stock of their products, but they outsource it to wholesalers for a small fee.
Dropshipping offers another advantage: you don’t need to purchase a product until you sell it.
This is an important bonus, considering most business models require that the product be purchased before a sale can be made.
Selling is a job that requires no shipping and handling. This allows you to focus on your business.
Dropshipping is a popular model for e-commerce because it removes the stress and hassle of shipping and managing.
Dropshipping is a model of retail fulfillment where the wholesaler ships the product directly to the customer.
E-commerce entrepreneurs don’t keep stock of their products, but they outsource it to wholesalers for a small fee.
Dropshipping offers another advantage: you don’t need to purchase a product until you sell it.
This is an important bonus, considering most business models require that the product be purchased before a sale can be made.
Selling is a job that requires no shipping and handling. This allows you to focus on your business.
Dropshipping
- A customer pays for a product
- Send the order to your supplier
- The product is shipped by your supplier
Dropshipping is when a manufacturer agrees that products will be shipped directly to the customer.
Let’s now learn more about dropshipping and how it works.
Pros
Low start cost
It is easy and inexpensive to start an e-commerce dropshipping company. A website purchase, a Shopify account and purchasing the required learning tools are all necessary to start a dropshipping company.
There will be other costs associated with starting a business, but it does not require much money.
No need to worry about shipping
Dropshipping is a great option for international college students who don’t have the space or the money to store and ship their products.
This responsibility is delegated to your supplier. You can now focus on marketing and advertising your online business without worrying about shipping and storage.
After you have made a sale, you only pay for the product.
The best thing about dropshipping is that you only pay the wholesaler or manufacturer after the customer has paid you.
This means that you will only be charged for the product if you have already sold it. This is a great way for college students to make money online, even if they don’t have a product or enough cash to buy inventory.
Most products can be dropshipped
Wholesalers and manufacturers can be found for almost all the products that you are interested in selling. Finding a supplier who will ship your products directly to you at a fair price is the challenge.
Dropshipping is a difficult business venture.
You can run your business from any part of the world
You aren’t responsible for shipping and handling the product so you can theoretically work anywhere around the globe.
You can open a shop anywhere you have an internet connection and a laptop.
You can still manage your business, even if you go to visit your friend at The University of Southern Florida.
Cons
Less control on fulfillment
Shipping and handling will be outsourced, so expect to have more issues.
Drop shipping is a common business model for e-commerce. There are many dropshippers. This can lead to miscommunication.
Dropshipping your products can make handling customers a daunting task.
Lower Profit Margin
Because there are few barriers to entry for e-commerce, the competition is fierce.
Dropshipping is easy and doesn’t require a lot of money to start. Your profit margins will be small.
Profit margins are reduced by high levels of competition
Customer Services
Dropshipping is a way to manage your customer service. Your logo and return address will appear on the package when the wholesaler ships product to your customer.
Dropshipping companies won’t be contacted if there is a problem.
What you need to know before you get started
Supply chain is the most important word to learn before you get started in dropshipping.
The supply chain is the sequence of events that lead to the creation of a product. The supply chain is a collection of all steps required to make a product available for purchase.
Three key players are involved in production and distribution.
How the Supply Chain Works
Manufacturer
The manufacturer is the first in the supply chain. The manufacturer is responsible for creating the product. This is the best way for you to maximize your profit.
Because you receive a product from a manufacturer before any other person in the supply chain, the price is always the lowest.
The price of the product will rise once it is shipped to a wholesaler. This can reduce your profit margins. Manufacturers have high minimum purchasing requirements, so you’ll need to purchase in bulk.
Wholesalers
The wholesaler is the next step in the supply chain. The wholesaler typically buys bulk from the manufacturer.
Wholesalers can purchase minimums of products because they have large capital.
After receiving the product, wholesalers will mark up the price to sell to retailers. Although wholesalers have a lower minimum purchase than manufacturers, their prices tend to be higher.
Retailers
A retailer is not a physical store. Retailers are anyone who sells to the public.
An e-commerce retailer is a person who manages the supply chain. This is the place where the product will be most expensive in the supply chain.
The price is then inflated by retailers who sell the product to customers.
