The Real Truth About How Does Dropshipping works?

A lot of people get into Dropshipping business without really doing their homework or knowing what exactly is Dropshipping and what are the factors that are involved into it. You need to a lot of research when you are starting a e-commerce business. In today’s scenario internet is filled with a lot of information on how Dropshipping works. There are so many Dropshippers out there who run their blogs on how to start your Dropshipping Shopify store or things to keep in mind before starting Dropshipping business.

In this article, we will talk about important points on how Dropshipping actually works and what are the factors involved in the process. It is really important for you to know what you are getting yourself into before starting anything as you don’t want to spend thousands of dollars on your business and not get enough profit out of it. We want you to now exactly how Dropshipping works so that you don’t do the same mistakes.

What is Dropshipping?

You all know what Dropshipping really is. So, in simpler terms Dropshipping is basically reselling products which are from he manufacturer directly or provided by a wholesaler or any kind of supplier. Holding any inventory is not needed when it comes to Dropshipping business even when you are selecting thousands of products. You can simply resell products on your website without having to store them.
Shopify is one of the successful platforms to start a Dropshipping business. it provides a lot of plugins and tools to manage your orders. You can easily find suppliers which provide products to overseas customers. You can then sell these products with high profit margins in your region. This business model is very flexible as you don’t have to hold any inventory. You are basically reselling products that are in demand without risking much. You can Dropship anything from bags to clothes and from mugs to big items like boats. Products like jewellery, electronics, gadgets, furniture etc. can also be Dropshipped.

How to add value to your Dropshipping store?

First things that you need to do is to find a niche product for your store. That niche should be in demand and not a lot of people should be selling it. You are basically creating your own market and you are testing your own ads against different demographics available on platforms like Google and Facebook. For instance, if someone from your audience wants to buy a backpack and your company Dropships bag from other sellers, you will have to advertise backpacks which you are getting from other sellers and sell it to the consumer who was interested in buying it. Now, what happens is that the supplier charges for example $12 for a backpack and then you can sell the exact backpack for like $50. Isn’t it a fair amount of profit that you are getting? It is indeed great profit. So, that is how you can money via Dropshipping.

Sometimes there might be cases when people who were earlier buying the same bag from you for $50 get to know the price that the manufacturer is charging you for the same bag and that is $12. They start to buy these bags from the manufacturers directly and start selling it for price lower than what you are selling that for. For example, they sell the bag for $25. Now, you have to abridge your profit margin. You may start selling that bag for $25.

You also need to remember that Dropshipping is not a one-way process where you will only get profits. You also have to spend a lot of things like advertisements and marketing. Your profit margins end up being very low after all that you spent on the growth of your Dropshiping store. You are business if you mess up any order or have any glitch. So, in order to avoid any mistake which can lead you out of this business, you must know what Dropshipping exactly entails. There are a lot of Dropshippers out there providing information on how to generate thousands of dollars through Dropshipping store but the reality is that they are making a major part of their profits from all those blogs and mantras that they offer to you about Dropshipping instead of the Dropshipping store themselves. You must know the idrectiond that you are going towards before doing anything so that you can have a good profit pit of your business.

When you follow all these guides and systems about Dropshipping business model you will get a lot of competitors on your way to the process of Dropshipping as they all are following the same system. This is bound to happen even if you get enough sales. Then you will have to drop your products and look for another niche. Its very easy to get other people to get into things that you are doing and making their presence in the same market.

These are the reasons why it sometimes becomes difficult to grow a Dropshipping business. When yi make money at a very rapid rate it brings some pros and cons with it. We will tell you what are the pro’s and cons involved in it.

Cons:

Your profit margins can be very tight and you could potentially go out of business very quickly. There are people who made as much as $100 per month initially but when they get into actual finances the problem arises. What could happen here is that their supplier may run out of inventory and you have thousands of dollars order to fulfil. In this case you will not be able to ship products because the manufacturer stopped producing those products. When your manufacturer is not able to ship items to you then you will not be able to fulfil your orders. In this case your store will get reported on platforms like Shopify. In this case you will be forced to shut down your store. You will have to refund all the money that your customers have paid and all your profit margin will go into vain.

The main thing that you need to remember is to not hurry to get rich in this business. You need to be really constant in your game of Dropshipping. There is no shortcut to this business. You need to work really constantly to do get things done. You will have to test your ideas, invest your money in it and keep growing your business.

There are Dropshippers who keep freplicating the process in which they get success once. You can keep on doing the same and take it as a full-time job. You need to know what the Dropshipping business world entails before getting into this business. There is a lot of information about Dropshipping available on the internet that you can read and get to know about so many things. Don’t buy their programmes which everyone is using though. You should be really careful in what you are choosing and what not. Don’t fall for generalised information.

Dropshipping is not as easy as people make it appear. Its not a bed of roses but you can accomplish it if you do things in the right manner.

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count: