Dropshipping is a dropshipping business that does not require such an expensive item as a warehouse. In fact, the business is based on intermediary services between the manufacturer and the consumer.
A classic example of dropshipping is an online store of some kind of Chinese goods. Shop in in this case is simply a showcase for 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 that collects and processes orders and also accepts payment. That is, a dropshipping system is an intermediary service between a wholesale supplier or manufacturer and an end customer.
Benefits of dropshipping
- The initial investment for this type of business is relatively small. They consist only in the cost of creating and promoting the site.
- Costs for operating activities also small - site administration and order processing are required, as well as the implementation feedback with buyers.
- There is no need to spend money on the purchase and storage of goods.
- In the absence of high costs and 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.
Dropshipping risks
- The supplier is responsible for the delay in delivery of the goods or its loss, however, the image risks are borne by the intermediary, because the client is dealing with him.
- Due to the fact that the buyer cannot check the quality of the goods in advance, he may remain dissatisfied with them and his claims will be addressed to the intermediary, and not to the manufacturer.
- The updated Russian legislation puts tax barriers in the way of import parcels, the cost of which 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 the complicated Russian currency legislation.
Dropshipping system working diagram
- You need to decide on the specialization of the online store and choose suppliers.
- Now you need to create a website and bring visitors to it.
- When ordering a product on the website, you need to form an application for its delivery, accept payment and transfer money to the supplier minus your intermediary commission.
- It is necessary to control the process of delivery of goods.
- If the buyer detects a defect, then the goods must be returned back to the supplier. In this case, the buyer is either refunded the money, or a similar product is sent.
Dropshippers usually have several payment methods: credit card, bank transfer and electronic money. You can organize such an acceptance of payments using special services.
How to choose a supplier?
- The supplier's products must be competitive and have a 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 time frame.
- The reliability, quality and service life of the product should not be lower than the market average.
- Product safety comes first! The product must be safe for the consumer and have all the necessary certificates.
- The method of payment with the supplier must match the methods of receiving payment on your website, otherwise difficulties may arise. For example, if you receive only WebMoney or Yandex.Money, and the supplier accepts payment exclusively through PayPal, you will pay a decent commission every time you convert one to another.
- Both the dropshipper and the supplier are in the same boat and the success of the whole event depends on how well they manage to interact with each other.
The e-commerce industry is gradually evolving, so dropshipping is enough promising direction... Dropshipping is an opportunity to plunge into 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 goods) is a great way to start a business without worrying about inventory or shipping. The scheme is quite simple: you put the goods up for sale on your website and, having received the order, write to the supplier so that he sends the goods to the buyer on your behalf. We will take a closer look at this scheme in our (slightly revised) translation of an article from the Shopify blog.
The hardest part of doing dropshipping is finding a reliable supplier. But there is a great marketplace for that.
With AliExpress, you can easily find products to sell in your store without worrying about inventory or shipping. You can pay for goods at wholesale prices, and the seller himself 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 on your store. Due to the fact that most of the sellers on AliExpress are overseas manufacturers, they offer their products at a very competitive price.
Although AliExpress bills itself as an online retail marketplace, most sellers on AliExpress understand that most of their buyers are resellers, so they are interested in dropshipping.
Plus, it is very easy to do dropshipping with AliExpress.
You do not need to purchase products in advance, so you can test different products on your site without any financial costs... You can do dropshipping with AliExpress today without investing a dime.
Most sellers on AliExpress upload great product photos that you can use on your website, and also provide detailed descriptions so you can describe the product on 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 describe this process in more detail, and also tell you about what to look for when choosing a product and a seller, as well as how to set yourself up for success. In general, everything is not so difficult.
Why would someone buy an item from your store when they can buy it themselves on AliExpress?
When doing dropshipping with AliExpress, your competitive advantage there will be no price or uniqueness of the products offered. After all, this is arbitrage trading.
Good marketing and proactive customer search can become your competitive advantage. Branding, content creation and great support can also help you increase the value of your business in the eyes of your customers.
Store creation
Now that you understand how dropshipping works with AliExpress and what to focus on on your website, you need to launch the website. For this you can use the platform Shopify , it is one of the simplest and most popular platforms for creating online stores. Or you can look for alternative and less expensive options with a free plan, for example Tilda, Shop-Script etc. But take your time, first think about what exactly you are going to sell. Then you can choose a design that suits your chosen niche.
Choosing a niche and products
First and important step in creating your store - it is to determine the niche. If you're unsure of where to start, take a look at what product categories are on AliExpress and decide what interests you the most and what would be most interesting for you to sell.
Once you've decided on a niche, it's time to start picking out the products you want to resell in your store. In our example, we chose sneakers as a niche.
There are many products sold on AliExpress, 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 supported by research and are based only on our experience, but they can help you find reliable sellers. Here are some things to look out for:
No brands, fakes or imitations... It is better to give up branded items so as not to resell fakes and imitations. Choose unbranded products. If the product has a logo, then it is better to refuse it, even if this logo is real. It is not worth taking the risk as you are not an official brand ambassador and you cannot be sure if the product will be genuine. This can significantly reduce the choice of merchandise to resell, so it's best to choose a niche where the brand doesn't matter, such as electronic accessories or apparel.
Free shipping with the ability to track the parcel... Whenever possible, select products from sellers who provide free shipping with the ability to track the package all the way. Read the product description - sometimes the delivery method varies depending on the order amount, and cheap packages are only tracked in China. The best thing is when the seller provides ePacket delivery - it is not only cheap, but also very fast.
More than 300 orders... If a product has a lot of orders, this speaks of 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 repeated. When looking for new items, you can sometimes sort items by the number of orders.
For the latter, a Chrome extension can be used - AliExpress Assistant ... It is also available for Firefox, Opera and Yandex browser. This extension shows more detailed seller ratings.
Low price and the possibility of a potentially high mark-up... Depending on the goods that you plan to resell, choose goods costing 1-20 dollars (approximately 60-1200 rubles at today's exchange rate). Thanks to this, you risk less if the goods are of inadequate quality and you lose money, and you can also make a large mark-up on such goods and sell them for 20-50 dollars (1200-2800 rubles). For example, on AliExpress, you can find sneakers for $ 20 and sell them for $ 50. That way you get 60% of the net profit.
Lot good photos products without logo... Just in case, check if the photos are actually provided by the manufacturer and not stolen from another seller. You can do a Google search on the image to see if the photos were taken by the seller himself or were taken from the manufacturer.
Sociable and helpful salesperson... Don't be afraid to ask the seller questions before placing an order. A good, reliable salesperson will quickly answer all your questions. Sometimes you can even get a discount. If the seller does not respond to messages, this is clearly a wake-up call.
Adding products to your store
Now you have decided on a niche and products, launched a website. Now it's time to add products. Don't just copy pictures and product descriptions from AliExpress. If you want to be successful, take adding products more seriously.
Add your own product descriptions... Descriptions for most of the products on AliExpress are not written by copywriters, and the description usually does not fully disclose the benefits of the product. In addition, up-to-date 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 allows you to create sales pages with products.
Indicate expected delivery time... It is 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 the order (depending on the supplier). Most of the suppliers are located in China and delivery times vary from two weeks to several months depending on the shipping method. In addition, we all know how the Russian Post can work 🙂
Use an app or widget to track your order... Since dropshipping has a faster delivery speed than regular online stores, your customers are likely to ask you where their order is. To enable your customers to see the status of the order, you can use a special application for Shopify , or you can add a special tracking widget to your website, 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 advise you to offer free shipping to your customers.
Specify appropriate prices... It is best to quote a price about twice the original price. 50% of the bottom line will make your business worthwhile 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 instance:
- Oberlo - app for Shopify
- Expressfy - extension for Chrome
How to use AliExpress for dropshipping
It's pretty simple - when you've received your order, buy the product you want on AliExpress and enter the name and address of your buyer. The seller on AliExpress 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. Thus, after receiving 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 Shopify app we mentioned above will help you place orders on AliExpress more easily and keep track of price changes. Price changes can also be tracked through the extension AliExpress Assistant.
When placing an order on AliExpress, it is a good idea to let the seller know that you are dropshipping. Then the seller will not put any receipts or coupons into the package for your client.
On the checkout page, you can add a message to the seller. We advise you to write a message like: “We’re dropshipping. No promotions & invoices, please! " It is better to write your message in English, since most sellers do not know Russian.
After placing your order, you will soon receive a message that your order has been shipped. The speed of preparation of goods for shipment depends on the seller.
After that, you can change the status of the order on your website and allow the client to track the parcel in the way you previously selected.
Ready! All that remains is to wait for your client to receive the order. When your package has been delivered, AliExpress will send you an email asking you to confirm receipt of your order. It's worth a little delay with this - make sure that the client has received the package 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 solve the problem.
What about returning an item or money?
Most sellers on AliExpress do not offer 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 client was unhappy 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's protection system.
If your client is simply not happy with the purchase, we offer a refund. If the goods are damaged, ask the customer to take photos and send them to the seller on AliExpress, and solve the problem with him.
Growing your business
After 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 distinguish between reliable sellers who supply quality goods and unreliable sellers. It is worth considering building business relationships with trusted sellers. This way you can get lower prices and priority in order processing.
Most sellers on AliExpress use Skype. If you find yourself ordering frequently from the same seller, it might be a good idea to ask their Skype contacts and build a business relationship. Show the salesperson what you can bring him big number orders. Then some sellers may allow you to put your logo on the products, and also include customized invoices / receipts or inserts with your logo in the package.
Get Started Dropshipping
One of the benefits of dropshipping with AliExpress is the ability to quickly test and evaluate ideas and products. Not sure if a particular item will be on sale? Add it to the site and see if there will be orders. No orders? Just remove the item from the catalog and try something else.
Since you do not need to purchase goods in advance and regularly check their availability in stock, you run almost no risk. Create a website and start growing your business. And add to the site to respond promptly to customer questions or complaints.
Don't miss the next post. We write rarely, but aptly about online support and marketing
Features of the organization of sales on the dropshipping system.
Dropshipping is a great way to make a profit without an investment. To engage in this type of activity, you do not need a warehouse and initial capital. This is a simplified system of wholesales, but retail.
The formulation itself is rather complicated, but in reality everything is much simpler. At some sites, clothes or shoes must be purchased in sizes, so you have to collect them in order to buy the entire box. This is the time during which the booking itself for the goods may become irrelevant. Sometimes entrepreneurs are forced to invest their own money in order to close the size. Then they just sell the remaining goods on their pages that no one has booked. These are investments and risks.
Dropshipping does not imply the collection of sizes or batches. You find wholesalers or manufacturers willing to do this. 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 in dropshipping. This is not easy to do, since in most cases the wholesale price is not at all low. But still, there are Russian manufacturers who, at low wholesale prices, work on the dropshipping system.
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 right products. The main advantage of working with Russian sites is fast delivery and ease of communication, since the language is yours. If any discrepancies arise, they can be easily resolved.
Many dropshippers are now working with China. This is really very profitable, since the prices are minimal, so you can make a good markup by increasing your profits. But the disadvantage of such cooperation is the long delivery, so it is necessary that the client agrees to wait.
The main websites for dropshipping in China are:
- ru.aliexpress.
- com tinydeal.
- com sammydress.
- com bestchinashops.ru
- clothing-dropship.com
First, find sites that you are ready to work with, that is, where the prices are low and they are ready to retail at wholesale cost.
Dropshipping system operating instructions:
- Your task is to copy a photo of the product, place it on your page or in your online store and set the desired price.
- You can create a trading page on any site. It can 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 shipping costs and a small percentage of the profit.
- Now you simply receive an order from a customer and pass it on to a manufacturer or wholesaler. Indicate the recipient's address and all the details in the order.
- The wholesaler will ship the goods to the address you provide. It's simple, you don't need to rent a warehouse and initial capital.
Not all manufacturers are ready to work according to this scheme, since the goods are produced in sizes. Naturally, they acquire some size 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 a product. But novice manufacturers are happy to work with such a scheme. Since it is a great source of funds.
Despite not a large number of there are a lot of sold goods, dropshippers, respectively, the supplier has constant orders and money. He can track which model is selling out the fastest and increase the production of a given product.
Common systems for dropshipping:
- You need to find a wholesale site that works according to this scheme and register.
- Some manufacturers require you to prove that you have a point of sale. But this is also quite simple. Register on Avito, or any other site where you can buy and sell everything. Create a page selling clothes for this supplier. Photo 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 designation.
- Now you can order clothes or appliances at a wholesale price by 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 VK dropshipping:
- Create your page or group
- Submit product photos
- In the comments, indicate the description and size, price
- Now actively add everyone as a friend
- Necessary maximum amount clients
- Upon receipt of the order from the buyer, ask to transfer money to your account
- Now place an order from 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 is profit
How to organize dropshipping on VKontakte With Aliexpress online?
If your customers do not 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 online discuss all the details with the seller about the order, size and delivery time. This significantly reduces the time for receiving and ordering and goods. Thus, you will reduce the delivery time to a minimum.
With Aliexpress online?
This sales system has a number of negative and positive sides... For a 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:
- The ability to purchase goods from one unit at wholesale prices
- The ability to independently set a margin
- No need to rent a warehouse
- No need to invest your personal money
- You do not need to store things at home, as everything comes to the buyer
Cons of dropshipping:
- Inability to control the quality of goods
- Often the size grid does not coincide with real measurements and you cannot help the client correctly determine his size
- Competition is constantly increasing, because of this, sales are falling
The one who was able to develop a permanent client base earns pretty good money. The main thing is to choose the right manufacturer who makes quality goods and set a low margin. 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 a clientele. Moreover, it is better to sell the goods of not one manufacturer, but 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 Dropshipping Features.
Not many aspiring businessmen know what is dropshipping, and this ignorance prevents them from developing, 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 flow chart
Today, many people conduct their business on the Internet - personal pages in in social networks, online shopping and blogs are all fairly 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 on the network, but doing business becomes much easier: there is no need to rent a warehouse, choose delivery methods.
In English, dropshipping means dropshipping.
In other words, it is a sales system in which deliveries are made directly to the buyer from the manufacturer, bypassing an intermediary.
The scheme of action is very simple:
- An online store opens.
- Goods for sale are put up with a surcharge.
- The buyer orders the item he needs.
- The owner of the online store takes the order from the manufacturer, paying the required amount, and keeps the margin for himself.
- The manufacturer sends the goods to the customer.
Dropshipping is especially common when selling goods from China.
The margin is relatively small, while the buyer gets the opportunity to find out everything about the product on his native language, and do not waste time looking for the right thing on Chinese sites.
It is very convenient to place an order on the website of the online store.
The client chooses the delivery method himself: Express delivery or postage.
When ordering goods for a certain amount, shipping is free.
Main features of dropshipping
Understand, what is dropshipping you can by studying its main features and principles of the system.
Dropshipping Features:
Lack of large investments at the start.
The product is purchased only after ordering it and is immediately sent to the buyer.
There is no need to buy a lot of goods and stores it in a warehouse.
Reliability and transparency of work.
Consumers trust this trading model.
The only thing that is required of the seller is to monitor the trading floor, update it and support 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 offers, and it is very difficult to come up with something really original.
Supply disruptions.
Delivery times do not depend on the owner of an online store using dropshipping. Logistic errors often occur.
For a dropshipping business to be successful, there are 4 points to be considered
- Create an advertisement for your online store and track its effectiveness.
- Focus on customer needs.
- Choose original, non-stamped marketing tools.
- Choose creative ideas.
Steps to Build a Profitable Online Store Using Dropshipping
To create profitable business and make a lot of money 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:
Study the market, especially in the area in which you want to join.
To win, you need to bring something new.
Sometimes it seems that everything has already been done and thought up, but this is not so.
Even for selling 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 you can 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 arrange for its shipment to the buyer directly from the manufacturer.
You should choose a good supplier, as the negative about the product will be written on your site.
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 before this and outline the terms of the deal.
Examine the documents of the supplier, monitor the quality of the goods.
Registration in Russia LLC or individual entrepreneur.
It is necessary for legal implementation trading activities and the absence of problems with checks.
Promote your online store.
This can take a long time.
The most best options promotion - SEO optimization, contextual advertising or advertising in: VKontakte, Odnoklassniki, Instagram.
It doesn't take a lot of time and effort to understand the dropshipping system and start using it successfully.
It is best to learn how the system works in practice, during the testing period of the online store.
Spend a lot of time looking for a reliable supplier.
Conduct conversations on Skype, find out all the details about delivery and directly about the product.
Ask for email sent a scan of all the main documents.
Create a bright, colorful website.
Visitors pay a lot of attention to the design.
Ask the manufacturer real photos goods.
The consumer must know exactly what he is buying.
Understand dropshipping.
Act on the basis existing regulations internet commerce.
Provide ongoing communication with your customers.
Reply to all messages.
It inspires confidence.
Specify the terms of delivery, the possibility of returning the goods.
To do this, create a separate page on the site.
When speaking with a supplier, emphasize that the item will be shipped from the main warehouse directly to customers.
Indicate that you are an intermediary between the seller and the buyer.
In the event of disputes, 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 the lack of conscientiousness of suppliers can disrupt the well-established trading mechanism, therefore, great attention should be paid to the choice of 1-3 reliable manufacturers of goods.
Dropshipping: pros and cons
Any system has its pros and cons.
Dropshipping is a well-known phenomenon in the West; in Russia, in many respects it causes only distrust.
Main advantages:
- There is no need to purchase a large amount of goods and store them before purchasing.
The investment is required only for the creation of the site and its promotion. - 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 the most profitable.
This does not require termination of the contract with the supplier, you simply refuse to cooperate. - The contracts do not tie you to a specific supplier.
It can be change at any time.
Cons 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 to send a product in a specific package, you most likely will not be able to fulfill his request. - Bad reviews will go to your site, not the vendor's site.
The following video provides tips you can follow to learn how
whether the product you have chosen will be in demand for sale through the dropshipping system.
Businessmen who know what is dropshipping, achieve success much faster.
This is due to the fact that they do not invest a lot of money in purchasing goods and renting a warehouse, and, accordingly, do not lose them.
What is dropshipping in simple words? How to find a supplier for your online store? How does the dropshipping collaboration work for the sale of goods?
Hello dear friends! Alexander Berezhnov, one of the founders of the HeatherBober.ru magazine, greets you.
How to sell a product without even having it in stock? My answer is simple - with dropshipping!
In this article, I will tell you in simple terms how to organize a dropshipping sales process, where and how to find a reliable supplier, and what products are good to sell using this model.
So let's go!
1. What is dropshipping - definition and scheme of work
The English word " Dropshipping"Means" direct delivery". The point of working with this system lies precisely in the direct supply of goods from the manufacturer to the consumer.
Dropshipping is a sales system for an online store in which the goods are sent directly from the manufacturer to the buyer, that is, in fact, mediation.
The organizer of the business acts as a transmission link: he is looking for demand and realizing the offer. In other words, an intermediary finds a customer, a 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 fact you are just an electronic storefront. You DO NOT NEED to purchase the goods themselves!
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 and the final price in his pocket.
In theory, everything sounds simple, but in practice, in order 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 with a standard approach? - in the absence of start-up capital and ignorance of the specifics of this business.
A dropshipping business eliminates the initial investment and virtually zero initial capital.
Suppliers with this method of doing business, of course, do not work for nothing and do not do charity work, but a streamlined work scheme allows entrepreneurs to make direct deliveries of goods to customers, bypassing the procurement stage.
Dropshipping has appeared relatively recently thanks to the development of Internet communications. Currently, there are hundreds of resources - suppliers of goods from China (or other countries) to online stores around the world.
For customers, the price difference is not large, especially since not all buyers 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 in comfort, communicating with the seller in your native language.
The client makes a purchase as quickly as possible:
- an order is made on the website of the online store;
- courier service or mail delivers the goods.
The buyer does not care where the goods came from at the seller's warehouse and how long it was there: the main thing is that the product is of high quality.
An entrepreneur (like you) only places an order with a dropshipping supplier if a customer places an order from their online store. This guarantees payment and eliminates the risk of investing. The client does not even know that he is purchasing goods 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 such a business scheme is from 20% to 100%... Quite a decent income in the absence of start-up costs. At the same time, the entrepreneur is not worried that the goods he has bought 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: clothes, 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 that act as a kind of showcases.
Along the way, online stores are engaged in marketing, advertising, processing transactions, accepting payments: everything that ordinary people do. outlets... Dispatch and delivery is 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 take a look at the advantages and disadvantages of dropshipping versus an offline business.
| № | Comparison criteria | Dropshipping | Offline business |
| 1 | Start-up capital | Not needed (+) | Needed (-) |
| 2 | Warehouse availability | Not needed (+) | Needed (-) |
| 3 | Product quality assessment | Hard (-) | Just (+) |
| 4 | Office rent | Not needed (+) | Needed (-) |
| 5 | Profit percentage | Large (+) | Miscellaneous (±) |
| 6 | Competition | Large (-) | Large (-) |
When starting your business, carefully analyze these criteria in relation to your business.
Main features of dropshipping
Now in more detail on the points about 4 features when working with a dropshipping system.
Feature 1. Large initial investments are not required
Large start-up capital is really not needed, but funds will still be needed to open an online store and promote it on the network.
In one of the previous articles, we have already told in detail. I recommend that you familiarize yourself with it.
The main thing to focus on is the level of customer service. Dropshipping shops should 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 working model
This business model is trusted by consumers. This is a well-established sales scheme. Great amount well-known chain stores in the world and in Russia operates on a dropshipping system - for example, a store such as Ozon or Yulmart 24.
Dropshipping goods do not require warehousing, large purchases and allow us to offer customers a wider and diversified assortment.
The product does not deteriorate, does not stale, does not go out of fashion, since it is constantly being updated. No need to hire additional personnel to package products, 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... In fact, he acts as an intermediary between the manufacturer and the buyer.
Feature 3. Difficulty with price and competition
Still, call dropshipping a haven for e-commerce it is forbidden. As in other areas of business, there is competition and other pitfalls. Reduced prices by large dropshipping companies, dumping, unscrupulous suppliers - all these factors reduce the financial profitability of your business.
To be successful in the dropshipping business, you need to learn how to work with the proposal and customer persuasion. You cannot base your firm's competitiveness on low prices alone.
Customers are attracted not only by the low cost, but also by promotions, bonuses, special services that are not available in other stores.
You should work with several suppliers for an online store at once. This will avoid situations with the absence of specific goods in the manufacturer's warehouse in this moment(if one does not, the other will surely have it).
Feature 4. Interruptions in delivery times
Another disadvantage of dropshipping (if you work with China) is the delivery time. Sometimes goods from the PRC take a very long time. You promise the client a delivery time of 2 weeks, and the parcel is delayed by 1.5-2 months.
As for trading in products you haven't seen, then this problem completely solvable. Some manufacturers can send you a trial sample of the product or give you the maximum detailed description its functional characteristics.
Dropshipping platforms deal with many orders and often make mistakes in logistics, delivery and other points. Reliable suppliers are usually ready to make amends at their own expense if proven wrong, but unscrupulous companies can ignore your claims.
In this case, it is better to shell out money to the client out of your pocket - reputation in business is more valuable than momentary profit. Always focus on the customer: In online retailing, firms that place the customer at the center of their business model thrive.
The main driving forces behind successful dropshipping in Russia are:
- effective advertising;
- customer focus;
- selection of original marketing tools;
- creative approach to the implementation of 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, not only the most talented survive, but also the most patient and persistent. Keep moving in the given direction and the result will be sure.
3. How to start cooperation - 7 steps to open a profitable online store using the dropshipping system
In this section of the article, I'll show you how to get started making money using dropshipping and share some of my experiences on this topic.
I'll start with a practical example:
Now one of the most popular topics for making money on the Internet is "Business with China". Its essence lies in the fact that you buy cheap goods in bulk: for health, souvenirs, household appliances and so on and sell them at a higher price. Usually, the mark-up on goods from China ranges from 100% to 1000%. Think for yourself how much profit you can get here.
It is curious that at the initial stage it is possible to organize such a trade without directly purchasing goods through the dropshipping system and, having acquired the necessary experience, already engage in wholesale purchases, earning more.
Business with China is a promising and monetary direction, but everywhere there are nuances. And if you want to avoid typical mistakes and earn the first money in the near future, you need a mentor.
Zhenya has already achieved great results in his business and at the same time teaches others. The team of our site is personally acquainted with Eugene and we can vouch for the quality of his training.
For clarity, watch the video in which Evgeny's students talk about their success after completing the training:
Step 1. Study the market and identify a niche
Perhaps your strategy will not be to channel energy into an area where there is already maximum competition. Then try to offer your customers something really new.
A preliminary and comprehensive analysis of the market is required in those areas where competition is not yet so strong or there is a possibility of improving the current patterns of interaction between the seller and the client.
In our opinion, the promising dropshipping niche is not the one that most thriving online retailers occupy. At first it will seem that absolutely all the seats are occupied, but in fact there is always room for maneuver, you just need to look carefully.
Example
Everything more people young, middle and old want to live healthy life and quit smoking.
At the same time, several large manufacturing companies electronic cigarettes and accessories offer cooperation on the dropshipping system to physical and legal partners. Why not try your hand at such a promising business?
You can list your interests and skills to narrow down the activities you want or can do. If you are good with Chinese teas, modern iPhone gadgets, supplements for sports nutrition- try to convert your knowledge into profit.
Step 2. Create an online store
The creation of an online store is a fairly popular line of business at the present time.
4. How to find a supplier for your dropshipping online store?
About the search for suppliers we are in general outline described above, here we will indicate that there are sites on the network with open and paid access to the lists of suppliers.
For instance, free listings can be found in the communities on the social network 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 dropshipping portals, for example, Yulmart 24 or a 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 lots and works exclusively with legal entities... At Neotek you can buy large quantities of any clothing for all ages.
Dropshipping job options
There are 2 working schemes for selling goods by dropshipping:
- In the first In this case, the dropshipper finds a client on his own, concludes a deal with him, takes an advance payment and settles with the supplier.
- In the second - The dropshipper simply finds a buyer and the supplier accepts the payment. After that, a certain percentage of the profit is deducted to the intermediary.
The first option is less risky. In the second case, your profits will depend on the decency of the supplier. However, if you work with a reliable and well-known company, he is unlikely to 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 him your services as an intermediary.
You can even conclude a full-fledged contract, which will spell out the key points of cooperation.
I will reveal a secret
Manufacturers are often interested in distributors' services themselves, so do not think that you will impose on anyone.
There is another, not entirely correct way of finding a supplier - to find out who competitors are working with and offer these firms their services at a lower price.
For successful work according to the dropshipping system, it is advisable to attract modern services to increase income and facilitate the process of selling goods.
I recommend a resource that is useful in many ways www.apishops.com, which has its own database of ready-made one-page sites, a wide range of products and powerful order processing functionality.
I myself worked with Apishops for some time, but now I am engaged in another business - creating and making money on information sites, I like it more.
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 to say, starting your own business, has many advantages, especially for aspiring entrepreneurs. The main one is the absence of large expenses for starting a business.
This method is not without its drawbacks, for example, there are risks of running into unscrupulous suppliers. In general, the dropshipping model is very relevant and will continue to evolve in the future.
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