What is drop shipping and how can you start doing it?

We all dream about a time when we have our own business and we can make a living online. Well, the time is now as we do have the opportunity to generate a lot of profits and create a good business without a ton of effort. It all comes down to drop shipping and understanding how you can create a stellar drop shipping store that will give you great value for your money!

What is drop shipping?

Drop shipping at its core is a retail fulfillment method. This means you create a store on any niche you want but you don’t keep any of the products you see in stock. When you sell a product, your system will automatically redirect the purchase to your wholesaler. The wholesaler has the product in stock and he will fulfill the order for you.

The idea here is that you, as a merchant, will not see or even touch the product to begin with. You will just be the intermediary between a wholesaler and the customer. And the best part is that you are the one choosing the overall price and other stuff you want. You are creating your own store, and you are free to create the purchase process and anything else the way you want to. It’s convenient, interesting and also a really professional way to generate growth!

Drop Shipping Business Future

The reason why drop shipping is so hot right now is because more and more people are trying it out. And since there are so many niches and so many audiences you can serve, the results can be great and the possibilities on their own are limitless. Which really goes to show the great results, value and professionalism you receive from all of this. It’s safe to say that drop shipping is a store that you create out of passion, but it can become your job too if you are very serious about it. Hard work and commitment will always pay off, you just have to make the most out of them.

How does drop shipping work?

In order for the drop shipping experience to work, you need to have 3 players. You are the retailer here. You will need to work closely with the manufacturer or a wholesaler that will be connected to the manufacturers. And yes, you will need to find customers as well. The idea here is that you are running the store and you need to acquire items at a lower price, all while making sure that the wholesaler will complete the order without you. It’s definitely a hands-off experience and one that has the potential to pay off very well if you do it adequately.

The reason why drop shipping can be a bit challenging for some people is because you are the one that markets the products. You need to choose the right stuff and you also have to manage customer inquiries and any support issues. The only thing you don’t have to do is storing the items and shipping them to customers. That alone is a huge part of being a business and more often than not it becomes a huge chore for customers. Which is why we believe that focusing on professionalism and value is a crucial aspect, because you can indeed grow a good drop shipping business if you are serious and professional with your customers.

Disadvantage of Drop shipping Business Model

One of the main challenges that come from having such a business is that you do end up with a lot of issues if you have the wrong partners. That’s why you should avoid creating the drop shipping and selling products until you have a good wholesaler that can fulfill your sales. Otherwise you will end up with problems and it’s a good idea to avoid them.

You have to realize that every industry has its own challenges too. Some of them will require you to invest a lot on marketing, just because customers are hard to come by due to the high price point. But there are also industries where products are inexpensive and you really have to sell a whole lot in order to make due. So yes, it all comes down to studying the market and finding reliable wholesalers that can indeed fulfill your orders. That’s not exactly a simple thing to do, just because many of them might not be able to source the items you need on time.

And that’s why checking reviews and also talking with other people in the industry is a really good idea. Some drop shipping companies go with the option of finding 2 or more wholesalers that they choose to work with. That seems to be a better idea for them and it does indeed work very well if you think about it. The benefit is that you get to be in more control than ever before and the outcome is always a good one, regardless of any hiccups that can and might appear at times.

What does a drop shipping business do? 

The drop shipping business will have to create a storefront and sell various digital or real life products to customers. What makes the drop shipping business different when compared to other types of companies is that it doesn’t have to store any products. This is, in fact, one of the major problems that regular companies have to deal with. Creating and also storing products comes with huge costs. Sure, you get to keep most of the income, but in the end it will be very hard to grow as a business this way.

Which is why it makes a lot of sense to go on the drop shipping approach. This is designed to offer a whole lot of value and quality and at the same time it’s one of the main systems you can use to grow your company in the long run. It certainly works really well just because you have more control and you can easily stop selling any product when the wholesalers and suppliers will not be able to provide you with it.

And that’s great, because you always get to see what the supplier has to offer and the amount of stuff he has in stock. Suppliers are ok with this because they get to have more sales and they don’t worry about a manufacturer not being able to sell a product the way he wants to. So yes, everyone wins and you can easily select your profit margin as you see fit.

That’s maybe the best and major benefit of drop shipping companies, the fact that you are that last link to the customer. The downside is that you need to promote products and sales in order to generate a customer base. The others in this link will just rely on normal sales, which drop shipping companies can’t really do unfortunately. They will get sales when they promote their business and that’s why you do need to have a promotional budget for stuff like this. It’s still worth the effort for sure, so try to consider all of that.

What are drop shipping companies?

The drop shipping companies are all those companies that focus on making a living via drop shipping. They have more than a single drop shipping business more often than not and they connect the best suppliers to fulfill sales online at a professional level. It’s a system that does tend to work really well and it will offer you tremendous results more often than not.

That being said, you do need to take your time when you create the drop shipping company. That’s because you have to study the market and see what customers can provide you or not. At the same time, you also want to avoid storage costs, carrying inventory or actually creating products. That’s definitely very hard to handle and deal with, especially for someone new in this business. It makes a lot of sense to start a drop shipping company just because you get to have more control and there’s also more consistency. All the little things matter here, and the more you focus on them, the better the results will be in the end, so try to consider that.

Another important aspect related to drop shipping is that it’s very easy to start. You do need to have a little business experience when it comes to starting a company and so on, but most of the info you need regarding the start of a drop shipping business is found online. And you can easily create the site and sell stuff on it if you want to, then start a business when you actually start selling any kind of stuff.

That being said, a good drop shipping company needs to have all the legal and infrastructure aspects handled before launch. This way you will have every finance related task and anything like that ready to go. It’s a whole lot easier and better to handle all of this, and the results can indeed be more than ok in the end. The idea is to know what you are getting into and you will be extremely happy with the payoff in the end.

What is a drop shipping wholesalers? 

The wholesaler is a company connected with manufacturers all over the region/world. The wholesaler is the one that will store items and fulfill your orders when you receive them. That’s why you need to find a good drop shipping wholesaler, because he will be the one that will complete your orders and you will just get paid for that. It really is a great system and you will be quite happy with the results and the experience that you get from it. There are some great benefits you will enjoy here and the ROI can indeed be among some of the best for sure.

Is it mandatory to work with a wholesaler? Usually it’s a good idea to have a drop shipping wholesaler just because he will fulfill your orders at a reliable and professional level. He will make sure that your orders are handled correctly and they make sales this way too. So everyone is happy in the end. That being said, you can work directly with the manufacturers, however they don’t have a shipping infrastructure most of the time.

Which is why having a wholesaler that will handle item storage and shipping for you is a much better idea. It still works the way you want and it definitely provides a huge array of options. That’s why you need to at least give it a shot and the outcome can indeed be among some of the best out there.

How drop shipping suppliers work? As we mentioned above, they will fulfill your order as soon as you receive it. You need a system that will automatically send your orders to them, they will process everything and ship the item as fast as possible.

Is it a good idea to start a drop shipping store?

Yes, drop shipping is maybe one of the best ways to make money online right now. You can create whatever type of business you want, you can pertain to any niche and the experience on its own can be really exciting.

Plus, this can be a lucrative side hustle. You just have to promote your business, work with the right suppliers and ensure that every customer is happy. From here to generating a lot of sales it will be one simple step.

But maybe the best thing about drop shipping is that you can easily avoid warehouse fees. These are always pretty high, so having to deal with them is quite annoying. But that’s exactly the reason why drop shipping is so good, because you remove unwanted costs and focus on those things that really matter. Which, in the long run, can bring you tremendous value and quality. That’s why we recommend you to start a drop shipping business, because it can be very lucrative.

Are there major challenges involved? Of course, there will always be. But this is also very rewarding and it will offer you a great opportunity to start your own company. Lots of people started a drop shipping company as a side hustle and made a career our of it. You can do that too, all you need is to just check it out and give it a try. You will be extremely happy with the results!