Dropshipping is a direct supply business that does not require such an expensive thing as a warehouse. In fact, the business is built on intermediary services between the manufacturer and the consumer.
A classic example of dropshipping is an online store of some Chinese goods. Shop in in this case is simply a showcase of a specific segment of the Chinese market. Such online stores often sell phones, smartphones, tablets, and accessories for them and make a profit as an intermediary who collects and processes orders, and also accepts payments. That is, the dropshipping system is an intermediary service between a wholesale supplier or manufacturer and the end buyer.
Benefits of dropshipping
- The initial capital investment for this type of business is relatively small. They consist only in the price of creating and promoting the site.
- Costs for operational activities are also small - site administration and order processing are required, as well as implementation feedback with buyers.
- There is no need to spend money on purchasing and storing goods.
- Without high costs or initial investment, the price of the product is very competitive.
- An intermediary can change the assortment of his store by working with several manufacturers and suppliers.
- The buyer receives the goods on behalf of the dropshipper, thus developing the brand of the intermediary company.
Risks of dropshipping
- The supplier is responsible for the delay in delivery of the goods or its loss, but the intermediary bears the image risks, because the client deals with him.
- Due to the fact that the buyer cannot check the quality of the product in advance, he may remain dissatisfied with it and his complaints will be addressed to the intermediary and not to the manufacturer.
- Updated Russian legislation places tax barriers on imported parcels whose value exceeds 150 euros.
- The payment scheme “money in the morning, chairs in the evening” is still considered dubious by many Russians.
- When working with foreign suppliers, you will have to study the nuances of complex Russian currency legislation.
Scheme of operation of the dropshipping system
- You need to decide on the specialization of the online store and select suppliers.
- Now you need to create a website and bring visitors to it.
- When ordering a product on the website, you need to create a request for its delivery, accept payment and transfer the money to the supplier minus your intermediary commission.
- It is necessary to control the process of delivery of goods.
- If the buyer identifies a defect, the goods must be returned back to the supplier. In this case, the buyer either gets a refund or a similar product is sent.
Dropshippers usually have several payment methods: plastic card, bank transfer and electronic money. You can organize such payment acceptance using special services.
How to choose a supplier?
- The supplier's products must be competitive and in consistently high demand.
- The supplier must guarantee a refund or exchange of goods in the event of a defect.
- Delivery times do not have to be short, but must be completed within the specified period.
- The reliability, quality and service life of the product should not be below the market average.
- Product safety is paramount! The product must be safe for the consumer and have all the necessary certificates.
- The payment method with the supplier must match the payment methods on your website, otherwise difficulties may arise. For example, if you only receive WebMoney or Yandex.Money, and the supplier accepts payment exclusively through PayPal for converting one to the other, you will pay a decent commission every time.
- Both the dropshipper and the supplier are in the same boat, and the success of the entire event depends on how well they manage to interact with each other.
The e-commerce industry is gradually developing, so dropshipping is quite promising direction. Dropshipping is an opportunity to immerse yourself in the intricacies of trade without having warehouse space and large capital, but at the same time getting a high-margin and competitive business.
Dropshipping (or reselling products) is a great way to start a business without having to worry about inventory or shipping. The scheme is quite simple: you put the product up for sale on your website and, having received the order, write to the supplier so that he sends the product to the buyer on your behalf. We will look at this scheme in more detail in our (slightly expanded) translation of an article from the Shopify blog.
The most difficult thing when doing dropshipping is finding a reliable supplier. But there is a great marketplace for this.
With AliExpress, you can easily find items to sell in your store without worrying about inventory or shipping. You can pay for goods at wholesale prices, and the seller will send them directly to your customers.
Why AliExpress is suitable for dropshipping
AliExpress is a huge marketplace with a large selection of products that you can sell in your store. Due to the fact that most sellers on AliExpress are foreign manufacturers, they offer their products at quite competitive prices.
Although AliExpress positions itself as an online retail marketplace, most sellers on AliExpress understand that the majority of their buyers are resellers, so they are interested in dropshipping.
Plus, dropshipping with AliExpress is very easy.
You don't need to purchase products in advance, so you can test different products on your site without any hassle. financial costs. You can start dropshipping with AliExpress today without investing a penny.
Most sellers on AliExpress upload great product photos that you can use on your site, and also provide detailed descriptions so you can describe the product in your store.
And finally, the dropshipping scheme is very simple - having received an order on your website, you place an order on AliExpress and indicate the client’s address for delivery.
Below we will describe this process in more detail, and also tell you what to look for when choosing a product and seller, as well as how to set yourself up for success. In general, everything is not so difficult.
Why would someone buy a product from your store if they can buy it themselves on AliExpress?
When doing dropshipping with AliExpress, your competitive advantage will not be the price or uniqueness of the products offered. After all, this is arbitrage trading.
Good marketing and proactive customer search can be your competitive advantage. Branding, creating content, and providing excellent support can also help you increase the value of your business in the eyes of your customers.
Creating a store
Now that you understand how dropshipping with AliExpress works and what you should focus on on your site, you need to launch the site. For this you can use the platform Shopify , this is one of the simplest and most popular platforms for creating online stores. Or you can look for alternative and less expensive options that offer a free plan, such as Tilda, Shop-Script etc. But don’t rush, first think about what exactly you are going to sell. Then you can choose a design that matches your chosen niche.
Choosing a niche and products
First and important step in creating your store is to decide on a niche. If you don't know where to start, look at what product categories AliExpress has and decide what you're most interested in and what you'd be most interested in selling.
Once you've decided on a niche, it's time to start choosing the products you want to resell in your store. In our example, we chose sneakers as a niche.
AliExpress sells a lot of products, too many. To avoid headaches, choose quality products from a reliable supplier.
We have compiled a small list of criteria for choosing the right product. These criteria are not backed by research and are based only on our experience, but they may help you find reliable sellers. Here's what you need to pay attention to:
No brands, fakes or imitations. It is better to refuse branded items so as not to resell fakes and imitations. Choose unbranded products. If a product has a logo, then it is better to refuse it, even if this logo is real. There is no need to take any risks since you are not an official representative of the brand and you cannot be sure whether the product will be genuine. This can greatly reduce the selection of items for resale, so it's best to choose a niche where the brand doesn't matter - such as electronic accessories or clothing.
Free shipping with tracking capabilities. Whenever possible, choose products from sellers who provide free shipping with tracking of the package all the way. Read the product description - sometimes the delivery method varies depending on the order amount, and cheap parcels are tracked only in China. It is best when the seller provides delivery by ePacket - it is not only cheap, but also very fast.
More than 300 orders. If a product has a lot of orders, this indicates several things. Firstly, this product is in demand. Secondly, the supplier of this product is most likely reliable, since some of these orders may be repeat orders. When searching for new products, you can sometimes sort products by number of orders.
For the latter, you can use the Chrome extension - AliExpress Assistant . It is also available for Firefox, Opera and Yandex browser. This extension shows a more detailed seller rating.
Low price and the possibility of a potentially high markup. Depending on the goods that you plan to resell, choose goods worth 1-20 dollars (approximately 60-1200 rubles at today's exchange rate). Thanks to this, you risk less if the product turns out to be of poor quality and you lose money, and you can also make a large markup on such products and sell them for 20-50 dollars (1200-2800 rubles). For example, on AliExpress you can find sneakers for 20 dollars and sell them for 50. This way you will receive 60% of the net profit.
A lot of good photos products without logo. Just in case, check that the photos are actually provided by the manufacturer and not stolen from another seller. You can do a Google image search to see if the photos were taken by the seller themselves or were taken from the manufacturer.
Sociable and helpful seller. Don't be afraid to ask the seller questions before placing an order. A good, reliable seller will quickly answer all your questions. Sometimes you can even get a discount. If the seller does not respond to messages, this is clearly an alarm bell.
Adding products to your store
Now you have decided on a niche and products, and launched a website. Now it's time to add products. Don't just copy images and product descriptions from AliExpress. If you want to succeed, take adding products more seriously.
Add your own product descriptions. Descriptions for most products on AliExpress are not written by copywriters, and the description usually does not fully reveal the benefits of the product. In addition, current descriptions are usually only available on English language, and Russian machine translation in most cases turns out to be indigestible. Creating unique content will serve you well in the long run (Google ignores copied content) and will allow you to create product pages that sell.
Please indicate expected delivery time. It's a good idea to indicate on the product page (or somewhere else on your site) that the customer will have to wait at least 20 days to receive their order (depending on the supplier). Most suppliers are located in China and delivery times range from two weeks to several months, depending on the shipping method. Besides, we all know how Russian Post can work :)
Use an app or widget to track your order. Since the delivery speed with dropshipping is faster than in regular online stores, your customers will most likely often ask you where their order is. So that your customers can see the order status, you can use a special application for Shopify , or you can add a special postage tracking widget to your site, for example, Post-Tracker.ru or Post2Go.
Offer free shipping. This can become your competitive advantage. Most sellers on AliExpress ship for free or at low cost, so we recommend offering free shipping to your customers.
Please indicate appropriate prices. It is best to indicate a price approximately twice the original price. 50% of net profit will make your business viable and will also cover your marketing costs.
Add products to your store using apps. There are special applications that will greatly facilitate and speed up the process of adding products from AliExpress to your store. For example:
- Oberlo - app for Shopify
- Expressfy - extension for Chrome
How to Use AliExpress for Dropshipping
It's quite simple - when you receive your order, buy the desired product on AliExpress and enter your buyer's name and address. The AliExpress seller will take care of the rest.
It's a good idea to create a spreadsheet in Excel or Google Docs with a list of all the products in your store, your price, the seller's price, and a link to the product on AliExpress. This way, once you receive an order, it will be easier for you to find the right supplier on AliExpress, as well as monitor price changes.
Instead of a table, you can use special applications. For example, the Oberlo app for Shopify that we mentioned above will help you more easily place orders on AliExpress and monitor price changes. Price changes can also be tracked through the extension AliExpress Assistant.
When placing an order on AliExpress, it’s a good idea to let the seller know that you are doing dropshipping. Then the seller will not include any receipts or coupons in the package for your client.
On the checkout page, you can add a message to the seller. We recommend writing a message like: “We’re dropshipping. No promotions & invoices, please!” It is better to write the message in English, since most sellers do not speak Russian.
After placing your order, you will soon receive a message that your order has been shipped. The speed of preparing goods for shipment depends on the seller.
After this, you can change the order status on your website and allow the customer to track the package using the method you previously selected.
Ready! All you have to do is wait until your client receives the order. When the package is delivered, AliExpress will send you an email asking you to confirm receipt of your order. It’s worth taking a little time with this - make sure that the client has received the parcel and that everything is in order with the goods. If something is wrong, you can write to the seller or open a dispute on AliExpress to resolve the problem.
What about returning goods or funds?
Most sellers on AliExpress do not provide return options. Therefore, you will need to deal with the return of goods or funds in several ways. Problems when ordering through your store can most often arise due to the fact that the package did not reach the recipient or your customer was dissatisfied with the purchase.
If the package did not arrive on time, you need to deal with the seller on AliExpress. You can either contact the seller directly or open a dispute through the buyer protection system.
If your client is simply dissatisfied with the purchase, we offer to return his money. If the product is damaged, ask the customer to take photos and send them to the seller on AliExpress, and solve the problem with him.
Growing your business
Once you've completed a few orders, it's time to start looking for ways to grow your business and make more money.
Over time, you will learn to separate reliable sellers who supply quality products from unreliable ones. It is worth considering building business relationships with reliable sellers. This way you can get lower prices and priority when processing your order.
Most sellers on AliExpress use Skype. If you find yourself ordering from the same seller often, it's a good idea to ask for their Skype contact information and build a business relationship. Show the seller what you can bring him big number orders. Then some sellers may allow you to place your logo on the goods, and also include custom invoices/receipts or inserts with your logo in the package.
Start dropshipping
One of the benefits of dropshipping with AliExpress is the ability to quickly test and evaluate ideas and products. Not sure if a certain product will sell? Add it to the site and see if there are orders. No orders? Just remove the product from the catalog and try something else.
Because you don't have to pre-purchase items and regularly check stock availability, you take almost no risk. Create a website and start growing your business. And add it to the site to promptly respond to customer questions or complaints.
Don't miss the next post. We write rarely, but aptly, about online support and marketing
Features of organizing sales using the dropshipping system.
Dropshipping is a great option for making a profit without investment. To engage in this type of activity, you do not need a warehouse or initial capital. This is a simplified system of wholesale sales, but at retail.
The formulation itself is quite complex, but in reality everything is much simpler. At some sites, clothes or shoes must be purchased in sizes, so you will have to collect them in order to buy the entire box. This is the time during which the reservation for the product itself may become irrelevant. Sometimes entrepreneurs are forced to invest their own money in order to close the loan amount. Then they simply sell on their pages the remaining goods that no one has booked. It's an investment and a risk.
Dropshipping does not imply collecting sizes or lots. You find wholesalers or manufacturers who are ready to work according to this scheme. Most often, to purchase one unit at wholesale prices, you just need to register on the manufacturer’s website, indicating that you are a dropshipper. That's it, now you have access to all retail products, but at a wholesale price.
First, you need to find partners who are willing to work with dropshipping. This is not easy to do, since in most cases the wholesale price is not at all low. But there are still Russian manufacturers who operate using a dropshipping system at low wholesale prices.
List of Russian wholesale sites for dropshipping:
- stock-sale.ru
- viktoria-opt.ru
- vilnoshop.ru
- dropshopping.ru
- postavshhiki.ru
- dropshopping.ru
- aplix.ru
- ulmart.ru
- russia-dropshipping.ru
- optlist.ru
- suppliers.rf
- za-optom.com
- optomtovar.ru
Here you can find a suitable store with the necessary goods. The main advantage of working with Russian sites is fast delivery and ease of communication, since the language is your native one. If discrepancies arise, they can be easily resolved.
Nowadays, many dropshippers work with China. This is really very profitable, since the prices are minimal, so you can make a good markup, increasing your profit. But the disadvantage of such cooperation is long delivery, so it is necessary that the client agrees to wait.
Main sites for dropshipping in China:
- ru.aliexpress.
- com tinydeal.
- com sammydress.
- com bestchinashops.ru
- clothing-dropship.com
First, find sites that you are willing to work with, that is, where prices are low and they are ready to sell to retail at wholesale prices.
Instructions for operating the dropshipping system:
- Your task is to copy the photo of the product, place it on your page or in your online store and set the desired price.
- You can create a sales page on any website. This could be Avito or a regular VK page, just remember, now the site administration is actively blocking trading pages, so be sure to create a group.
- That is, you set a small markup that will cover delivery costs and a small percentage of profit.
- Now you simply receive an order from a customer and transfer it to the manufacturer or wholesale company. Indicate the recipient's address and all details in the order.
- The wholesale company will send the goods to the address you specify. It's simple, you don't need to rent a warehouse or initial capital.
Not all manufacturers are ready to work according to this scheme, since the goods are produced in sizes. Naturally, some sizes are purchased more than others. This leaves the manufacturer with a lot of clothes or shoes of the same size. It is difficult to sell such shoes; you have to organize promotions to sell such goods. But novice manufacturers are happy to work with such a scheme. Since this is a large source of funds.
Despite not a large number of There are a lot of goods sold and dropshippers, so the supplier has constant orders and money. He can track which model is selling out the fastest and increase production of that product.
Common dropshipping systems:
- You need to find a wholesale site that works according to this scheme and register.
- Some manufacturers require proof that you have a retail outlet. But this is also quite simple. Register on Avito, or any other site where you can sell and buy everything. Create a page selling clothing from this supplier. Photos can be taken from the manufacturer.
- After registration and confirmation, your status will change to “JV Dropshipping” or something like that. Each supplier has its own designations.
- Now you can order clothes or equipment at a wholesale price, purchasing only one unit.
How to organize dropshipping on VKontakte?
The scheme is quite simple; first, establish contact with the supplier or manufacturer.
Organization of dropshipping on VKontakte:
- Create your own page or group
- Post photos of your products
- In the comments, please indicate the description, dimensions, and price.
- Now actively add everyone as friends
- Necessary maximum amount clients
- When receiving an order from a buyer, ask to transfer money to your account
- Now place an order with the supplier and upon receipt of confirmation pay the required amount
- Enter the recipient's details and delivery address
- The difference between your cost and the manufacturer's is profit
How to organize dropshipping on VKontakte With Aliexpress online?
If your clients don’t mind waiting, then you can safely work in the Dropshipping system with Aliexpress. After the buyer’s order, you leave the order with the seller on Aliexpress. The fastest way to establish communication is through online chat. Each store has a “chat” button, where you can discuss all the details online with the seller about the order, sizes and delivery time. This significantly reduces the time for receiving both the order and the goods. Thus, you will reduce the delivery time to a minimum.
With Aliexpress online?
This sales system has a number of negative and positive aspects. For the seller, this is an opportunity to gain a decent customer base by selling quality goods. The dropshipper himself, that is, the intermediary, can make good money without investing anything in the business.
Pros of dropshipping:
- Possibility to purchase goods from one unit at wholesale prices
- Ability to set your own markup
- No need to rent a warehouse
- No need to invest your personal money
- There is no need to store things at home, since everything comes to the buyer
Disadvantages of dropshipping:
- Inability to control product quality
- Often the size chart does not coincide with actual measurements and you cannot help the client correctly determine his size
- Competition is constantly increasing, which is why sales are falling
Anyone who has been able to develop a regular client base earns quite good money. The main thing is to choose the right manufacturer who makes a quality product and set a low markup. After all, it is the low price that attracts buyers. Ideally, it is best to create your own online store, develop it and invest in advertising. This way, you can attract clientele. Moreover, it is better to sell goods not from one manufacturer, but from several.
As you can see, dropshipping is a great way to make money without investing anything.
VIDEO: Dropshipping
What is dropshipping – 7 steps to start own business+ 8 tips for beginners + 4 features of dropshipping.
Not many aspiring businessmen know what is dropshipping, and this ignorance prevents them from developing and building a business correctly.
How to take your business to the next level with dropshipping?
How to become a successful businessman?
What is dropshipping - definition and scheme of action
Today, many people conduct their business on the Internet - personal pages on in social networks, online stores and blogs are all quite widespread.
But almost no one knows anything about dropshipping, a convenient tool for doing business on the Internet.
The basis of dropshipping is the usual idea of an online store, but running a business becomes much easier: there is no need to rent a warehouse or choose delivery methods.
In English, the concept of “dropshipping” means direct deliveries.
In other words, this is a sales system in which deliveries are made directly to the buyer from the manufacturer, bypassing the intermediary.
The scheme of action is very simple:
- An online store opens.
- Items for sale are offered at a premium.
- The buyer orders the item he needs.
- The owner of the online store takes the order from the manufacturer, pays the required amount, and keeps the markup for himself.
- The manufacturer ships the product to the customer.
Dropshipping is especially common when selling goods from China.
The markup is relatively small, while the buyer gets the opportunity to find out everything about the product on his native language, and don’t waste time searching for the right thing on Chinese sites.
It is very convenient to place an order on the online store website.
The client chooses the delivery method independently: Express delivery or postal delivery.
When ordering goods for a certain amount, shipping is free.
Key Features of Dropshipping
Understand, what is dropshipping you can by studying its main features and principles of operation of the system.
Features of dropshipping:
No large investments at the start.
The product is purchased only after it is ordered and immediately sent to the buyer.
There is no need to buy a lot of goods and store them in a warehouse.
Reliability and transparency of work.
Consumers trust this trading model.
The only thing that is required from the seller is monitoring the trading platform, updating it and supporting the client at all stages of the sale.
You should be aware that there will be great difficulties with competition.
The Internet is filled with various proposals, and it is very difficult to come up with something truly original.
Supply disruptions.
Delivery times do not depend on the owner of an online store using dropshipping. Logistics errors often occur.
For a dropshipping business to be successful, you should pay great attention to 4 points
- Create advertising for your online store and monitor its effectiveness.
- Focus on customer needs.
- Choose original, non-cliché marketing tools.
- Choose creative ideas.
Steps to create a profitable online store using dropshipping
To create profitable business, and earn a lot using dropshipping, you need to go through all the steps.
If you already have a store, but it is not profitable, you should also reconsider your direction.
Steps to achieve efficiency:
Research the market, especially in the area you want to enter.
To win, you need to bring something new.
Sometimes it seems that everything has already been done and invented, but this is not so.
Even to sell things from China, you can find a new, original way that will attract buyers.
Create a platform - an online store website.
You can do this yourself, if you have certain knowledge, or contact a specialist.
Launch a test version of the store.
A month of work in test mode will show whether you should invest your money and time in this business.
Find suppliers for the store.
It is very important here that you can quickly pick up the desired product yourself, or organize its shipment to the buyer directly from the manufacturer.
You should choose a good supplier, since negative reviews about the product will be written on your website.
The best suppliers of goods from China are Dx.com, Osell.com, Aliexpress.com.
Enter into an agreement with suppliers.
It is best to negotiate beforehand and outline the terms of the deal.
Study the supplier’s documents and monitor the quality of the goods.
Registration of an LLC or individual entrepreneur in Russia.
This is necessary for the legal implementation trading activities and no problems with checks.
Promote your online store.
This may take a long time.
The most best options promotions - SEO optimization, contextual advertising or advertising on: VKontakte, Odnoklassniki, Instagram.
To understand the dropshipping system and start using it successfully, you don’t need to put in a lot of time and effort.
It is best to learn how the system works in practice, during the testing period of the online store.
Spend a lot of time searching for a reliable supplier.
Conduct conversations on Skype, find out all the details about delivery and the product itself.
Ask for email We sent a scan of all the main documents.
Create a bright, colorful website.
Visitors pay great attention to the design.
Ask the manufacturer real photos goods.
The consumer must know exactly what he is buying.
Understand the dropshipping system.
Act based on existing rules Internet trading.
Ensure constant communication with customers.
Reply to all messages.
This inspires trust.
Specify delivery conditions and the possibility of returning goods.
To do this, you should create a separate page on the site.
When talking with the supplier, emphasize that the goods will be sent from the main warehouse directly to customers.
Indicate that you are an intermediary between the seller and the buyer.
If disputes arise, you help the buyer resolve them, but you are not the guilty party.
The system of work is very simple if you understand it well.
Only dishonesty of suppliers can disrupt the established trade mechanism, so great attention should be paid to choosing 1-3 reliable manufacturers of goods.
Dropshipping: advantages and disadvantages
Any system has its pros and cons.
Dropshipping is a well-known phenomenon in the West, but in Russia it largely causes distrust.
Main advantages:
- There is no need to purchase large quantities of goods and store them before purchasing.
Investments are required only to create a website and promote it. - Since you do not have a warehouse and a huge assortment of goods, you can switch from selling shoes to selling toys at any time if you consider the second option to be the most profitable.
In this case, you do not need to terminate the contract with the supplier; you simply refuse to cooperate. - Contracts do not tie you to a specific supplier.
It can be change at any time.
Disadvantages of the system:
- No impact on delivery speed and quality.
It is almost impossible to control the quality of the goods sent. - You also cannot control the quality of product packaging.
If a customer asks for a product to be sent in a specific package, you most likely will not be able to fulfill his request. - Bad reviews will go to your site, not the supplier's site.
The following video provides tips that you can follow to learn how to:
Will the product you have chosen for sale through the dropshipping system be in demand?
Businessmen who know what is dropshipping, achieve success much faster.
This is due to the fact that they do not invest huge amounts of money in purchasing goods and renting a warehouse, and, accordingly, do not lose it.
What is dropshipping in simple words? How to find a supplier for an online store? How does dropshipping cooperation work to sell products?
Hello, dear friends! Welcome to one of the founders of the HeaterBober.ru magazine, Alexander Berezhnov.
How to sell a product even without having it in stock? My answer is simple - using dropshipping!
In this article, I will tell you in simple words how to organize the sales process using the dropshipping scheme, where and how to find a reliable supplier, as well as what products are good to sell using this model.
So, let's go!
1. What is dropshipping – definition and scheme of work
English word " Dropshipping" means " direct delivery" The point of working under this system is precisely the direct supply of goods from the manufacturer to the consumer.
Dropshipping is a sales system for an online store in which goods are sent directly from the manufacturer to the buyer, that is, in essence, intermediation.
The business organizer acts as a transmission link: he looks for demand and implements supply. In other words, the intermediary finds the client, the product and ensures their meeting.
An example of dropshipping work in simple language
You create a website on the Internet, for example, in the format of an online store, and in essence you are just an electronic storefront. You DO NOT NEED to purchase the goods yourself!
The main advantage of this scheme is the absence of costs for the purchase of goods on the part of the entrepreneur. He does not need start-up capital to purchase the initial batch of products: he immediately pays for it with the client’s money, and puts the difference between the purchase price and the final price in his pocket.
In theory, everything sounds simple, but in practice, to make a profit, the scheme must be worked out to the smallest detail.
What is the main obstacle when opening your own online store using the standard approach? - lack of start-up capital and ignorance of the specifics of this business.
A dropshipping business allows you to do without initial investments and with almost zero initial capital.
Suppliers with this method of doing business, of course, do not work for nothing and do not engage in charity, but a streamlined work scheme allows entrepreneurs to make direct deliveries of goods to customers, bypassing the procurement stage.
Dropshipping appeared relatively recently thanks to the development of Internet communications. Currently, there are hundreds of resources that supply goods from China (or other countries) to online stores around the world.
For customers, the difference in price is small, especially since not all customers have the opportunity and time to independently find Chinese sales sites and interact with them. This function is taken over by the intermediary’s online store, where you can make purchases comfortably, communicating with the seller in your native language.
The client makes a purchase as quickly as possible:
- an order is placed on the online store website;
- a courier service or post office delivers the goods.
It makes no difference to the buyer where the goods in the seller’s warehouse came from and how long they were there: the main thing is that the product is of high quality.
An entrepreneur (for example, you) places an order with a dropshipping supplier only if the customer places an order in his online store. This guarantees payment and eliminates risk when investing. The client does not even realize that he is purchasing the product from someone else: he does not need this information.
The goal of an online store owner is to attract customers by convincing them to purchase goods from him. The commission of intermediaries in this business scheme is from 20% to 100%. Quite a decent income with no start-up costs. At the same time, the entrepreneur does not worry that the goods he purchased will gather dust in the warehouse for months.
The main thing is to find a reliable and profitable supplier!
Dropshipping suppliers from China and Russia offer an almost unlimited range of products: clothing, shoes, accessories, household appliances, communication devices, exclusive products.
Large manufacturers who do not want to engage in retail sales sell their goods through online stores, which act as a kind of showcase.
Along the way, online stores deal with marketing, advertising, processing transactions, accepting payments: everything that regular stores do. outlets. Dispatch and delivery are carried out either by the manufacturer or by a partner company, if there is a prior agreement.
2. Advantages and disadvantages of dropshipping
Like any business, dropshipping has its pros and cons. Below in the table we will look at the advantages and disadvantages of dropshipping compared to offline business.
| № | Comparison criteria | Dropshipping | Offline business |
| 1 | Start-up capital | Not needed (+) | Need (-) |
| 2 | Availability of warehouse | Not needed (+) | Need (-) |
| 3 | Product quality assessment | Difficult (-) | Just (+) |
| 4 | Office rental | Not needed (+) | Need (-) |
| 5 | Profit percentage | Big (+) | Various (±) |
| 6 | Competition | Large (-) | Large (-) |
When starting your business, carefully analyze these criteria regarding your business.
Main features of dropshipping work
Now let’s take a closer look at the points about the 4 features when working with the dropshipping system.
Feature 1. No large initial investment required
You really don’t need large start-up capital, but you will still need funds to open an online store and promote it online.
In one of the previous articles we already talked in detail. I recommend that you familiarize yourself with it.
The main thing to focus on is the level of customer service. Dropshipping stores must provide the maximum full information about the product in a favorable light. High-quality images and photos of products must be present. This is especially true for dropshipping clothing and accessories.
Feature 2. Transparent and reliable operating model
This business model is trusted by consumers. This is already a well-established sales scheme. Great amount well-known chain stores in the world and in Russia operate using a dropshipping system - for example, a store like Ozon or Yulmart 24.
Dropshipping goods do not require warehousing or large purchases and allow you to offer customers a wider and more varied range.
The product does not deteriorate, does not stay stale, and does not go out of fashion, since it is constantly updated. There is no need to hire additional personnel to package products and check for defects.
All that is required from the owner is to monitor the attendance of his own trading platform and strive to increase the number active clients. Essentially, he acts as an intermediary between the manufacturer and the buyer.
Feature 3. Difficulties with price and competition
However, calling dropshipping a paradise for e-commerce it is forbidden. As in other areas of business, there is competition and other pitfalls. Price reductions by large dropshipping companies, dumping, unscrupulous suppliers - all these factors reduce the financial profitability of your enterprise.
To succeed in dropshipping business, you need to learn how to work with proposals and convince customers. You cannot base your company's competitiveness solely on low prices.
Buyers are attracted not only by low prices, but also by promotions, bonuses, and special services that are not available in other stores.
You should work with several suppliers for your online store at once. This will avoid situations with the lack of specific goods in the manufacturer’s warehouse in this moment(one doesn’t, the other probably will).
Feature 4. Disruptions in delivery times
Another disadvantage of dropshipping (if you work with China) is delivery times. Sometimes goods from China take a very long time to arrive. You promise the client a delivery time of 2 weeks, but the parcel is delayed by 1.5-2 months.
As for trading products that you have not seen, then this problem quite solvable. Some manufacturers may send you a sample product or give you the maximum detailed description its functional characteristics.
Dropshipping platforms deal with a lot of orders and often make mistakes in logistics, deliveries and other points. Reliable suppliers are usually always ready to compensate for damages at their own expense if their mistake is proven, but unscrupulous companies may ignore your claims.
In this case, it is better to pay the client money from your own pocket - reputation in business is more valuable than immediate profit. Always focus on the customer: Companies that succeed in online retailing are those that place the customer at the center of their business model.
The main driving forces of successful dropshipping in Russia are:
- effective advertising;
- customer focus;
- selection of original marketing tools;
- creative approach to implementing business ideas.
Yes, the competition is great, finding your own niche is difficult and troublesome, but this does not mean that you need to give up in advance. In business, it is not only the most talented who survive, but also the most patient and persistent. Continue to move in the given direction, and the result will definitely come.
3. Where to start cooperation - 7 steps to open a profitable online store using the dropshipping system
In this section of the article, I will tell you how to start making money using a dropshipping system and share some of my experience on this topic.
I'll start with a practical example:
Now one of the popular topics on making money on the Internet is “Business with China”. Its essence is that you buy cheap goods in bulk: health products, souvenirs, household appliances, etc. and sell them at a higher price. Typically, the markup on goods from China ranges from 100% to 1000%. Consider for yourself how much profit you can make here.
It is interesting that at the initial stage you can organize such trade without directly purchasing goods through the dropshipping system and, having acquired the necessary experience, you can already engage in wholesale purchases, earning more.
Business with China is a promising and profitable direction, but everywhere has its own nuances. And if you want to avoid typical mistakes and earn your first money in the near future, you need a mentor.
Zhenya has already achieved great results in his business and at the same time trains others. Our website team knows Evgeniy personally and we can vouch for the quality of his teaching.
For clarity, watch the video in which Evgeniy’s students talk about their success after completing the training:
Step 1. Research the market and identify a niche
Perhaps your strategy would be not to direct energy into an area where maximum competition already exists. Then try to offer customers something truly new.
A preliminary and comprehensive analysis of the market is necessary in those areas where competition is not yet so great or there is an opportunity to improve the current schemes of interaction between the seller and the client.
In our opinion, the promising niche for dropshipping is not one that most thriving online stores are pursuing. At first it will seem that absolutely all the places are occupied, but in reality there is always room for maneuver, you just need to look hard.
Example
All more people young, middle-aged and old people want to live healthy life and quit smoking.
At the same time, several large manufacturing companies electronic cigarettes and accessories offer cooperation through the dropshipping system to physical and legal partners. Why not try your hand at such a promising business?
You can make a list of your own interests and skills to narrow down the types of activities you want or can do. If you understand Chinese teas, modern gadgets for iPhones, supplements for sports nutrition– try to convert your knowledge into profits.
Step 2. Create an online store
Creating an online store is a fairly popular line of business nowadays.
4. How to find a supplier for an online store using a dropshipping system?
About searching for suppliers we are in general outline We described above, but here we point out that there are sites on the Internet with open and paid access to lists of suppliers.
For example, free lists can be found in communities on the social networks VKontakte and Facebook or simply in search engines. Do not rush to use addresses from the first positions of search results: wholesale suppliers are not always strong in SEO promotion.
You can also work with large Russian-language portals that work on dropshipping, for example, Yulmart 24 or textile company "Neotek" .
In Yulmart-24 you can find almost any consumer goods - from children's toys to computers and components for them. True, the store sells only wholesale quantities and works exclusively with legal entities. At Neotek you can purchase large quantities of any clothing for all ages.
Dropshipping options
There are 2 working schemes for selling goods through dropshipping:
- In the first In this case, the dropshipper independently finds a client, concludes a deal with him, takes an advance payment and settles accounts with the supplier.
- In the second – the dropshipper simply finds a buyer, and the supplier accepts the payment. After which the intermediary is paid a certain percentage of the profit.
The first option is less risky. In the second case, your profits will depend on the integrity of the supplier company. However, if you are working with a reliable and well-known company, it is unlikely that he will risk his reputation and profit from ordinary sellers.
There is another option for dropshipping - you independently find a large manufacturer of any goods in your region and offer them your services as an intermediary.
You can even conclude a full-fledged contract, which will spell out the key points of cooperation.
I'll tell you a secret
Manufacturers are often themselves interested in the services of distributors, so do not think that you will impose yourself on anyone.
There is another, not entirely correct way to find a supplier - find out who your competitors are working with and offer your services to these companies at a lower price.
For successful work Using the dropshipping system, it is advisable to attract modern services to increase income and facilitate the process of selling goods.
I recommend this resource, which is useful in many ways. www.apishops.com, which has its own database of ready-made one-page websites, a wide range of products and powerful order processing functionality.
I myself worked with Apishops for some time, but now I’m doing a different business - creating and making money on information sites, I like it better.
5. Conclusion
So, let's summarize. I hope that after reading this article, dropshipping will no longer be an incomprehensible word for you, but will turn into a real opportunity to increase your own income.
As you can see, this way of making money, or even better, starting your own business, has many advantages, especially for novice entrepreneurs. The main one is the lack of large expenses for starting your own business.
This method is not without its drawbacks, for example, there is a risk of running into unscrupulous suppliers. In general, the dropshipping model is very relevant and will develop in the future.
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