Dropshipping, a method of online Selling without inventory. Straightforward and convenient way of earning through digital marketing.
DropShipping is a method in which any seller, merchant or retailer take orders from customers but they don’t need any stock of products or goods, They transfers all the orders to the wholesalers or manufacturers. Then Product owners send ordered goods to the customers directly. In this way, wholesalers or manufacturers work like a third party to complete the orders.
In the dropshipping business, customers don’t get any payment bill because they will have to pay for their order earlier and after that order is delivered. Payment process for this business is online.
You can use credit or debit both cards for payment.
How To Start DropShipping Business
Here I narrate some simple steps for starting this business :
- First of all you should have a product which you want to sell. The product which one you select, that should be in demand, according to user’s interest, has the capability and brand value to attract more and more customers. You yourself have faith in your niche, if you have not, then it is quite impossible to create a beneficial market for it because you have to work hard to settle dropShipping business and make it successful.
- Your shipping cost plays an important role in developing this business so price range should be medium or low because low price is an attraction for users.
- Many people run a dropShipping business these days so the result is you will have to face strong competition in the market. So before starting your dropShipping business, you should observe the market that which product is in demand or which one is not. You should select the demanding product so that your business is on the path of progress.
- The success of this business depends on your choice of the right suppliers. If you establish your partnership with the wrong suppliers, it will ruin your business. So it is important to choose the right one. You should remain in touch and communicate with them regularly.
- After that, the most prominent thing is to make your own eCommerce website which is essential and supports your dropShipping business. eCommerce website is like a platform where you can show all of your products to your customers and engage them and that is the place where customers come and place their order.
- Then you should make a customer targeting plan how can you attract more and more related audience. How can you engage a number of people with your product? For this purpose, many options are available on social media platform but the Facebook ad campaign is the most effective option for you to target people. Through this, you will get heavy traffic for your niche directly and your sales increase.
- After that, you should analyze all the data related to your product on your website. You should observe that your product really works or not. You should track your customer’s activity on your website, conversions, and where your product is in more demand. In other words, you should scale your business, this allows your business to achieve a great height and increase your profit margin.
Now there is a query in your mind how much money is needed to start this business?
I tell you that you can start dropShipping business at 0% money investment or at a very little investment. If you want to stock or open a warehouse then it will depend on your financial capability or the cost of the product you want to sell.
Benefits Of DropShipping
- The best part of dropshipping is that there is no need much money to start this kind of business. You can start the eCommerce store without heavy investment. In this business, you have no need to purchase any kind of goods before any demand. You just take orders from customers and transfer them to the wholesalers or manufacturers.
- This business is very easy to get started because in the eCommerce store, you have no need for any warehouse, helpers, etc. You have no need to maintain your accounting data, no tension of shipment of orders. So it is a time saver business too.
- You can do this business from your home also. Ladies who want to do something to be self – dependent but can’t go outside, can also run this business. This is a perfect way of online earning through digital marketing from your home. You just need a laptop and your monthly expenses related to this business are very low and your profit is comparatively high.
- One more positive side of this business is that it is flexible. No requirement to sit at one place for this business, you can run dropshipping business from anywhere, just one thing is required that is internet connection. As your interaction or communication with your customers or suppliers will be strong, your business will be fruitful for you.
- In this business, there is no limit of a variety of products because you need not purchase goods to keep in stock before demand. So you can offer your customers a great variety and many kinds of products on your website without any additional cost.
- This business is very easy to scale that maintains a record for you. Everyone knows that when sales grow, additional work increases. But you need not to do all this because you just take orders and transfer them. Rest work will be done by the suppliers.
So you see that all these benefits make dropshipping straightforward and profitable business.
Is DropShipping Business A Legal Business or Not?
I want to tell you that it is completely a legal business because the target of this business is only to deliver people’s required order to them, in other words, order fulfillment business. Thus there is nothing illegal in this business.
But one thing is very important to start any kind of business and that is employer identification number (EIN). It is a must for dropshipping business too. This number is a kind of tax id which is needed to pay taxes, open your business account and many more activities have been done with the help of it. You have to pay income tax for this business also.
Best DropShipping Companies
- Doba – you can find everything here. A long list of suppliers and millions of products are available at one place named Doba. Doba dropShipping service is based on Orem, Utah. Doba takes time of 2-5 days for shipping and within 5-15 days customers find the product at their door. Doba offers sellers a free trial of 14 days. It has many membership plans, it depends on you which one you choose according to your choice and requirement. These plans are such as Basic plan in which the pricing is $29 per month, Advanced plan – pricing is $69 per month, Pro – in this plan you will have to pay $249 per month for everything and lastly Enterprise plan – if you want to take this plan, you will have to contact with Doba for custom rates. This plan has many interesting features than other plans. You can cancel your free trial or membership with Doba. But there are some problems with Doba and those are that Doba can terminate your account without any information. Its shipping charges are expensive. All charges and fees, you have paid to Doba, are non-refundable. Doba has the right to increase charges, add new fees from time to time.
- Aliexpress – It is a china based website owned by Alibaba group. It takes 15 – 45 days for delivery of orders at your door. It has special premium delivery service too, according to this it delivers order within 7 – 15 days with fast transportation and high-quality carriers. Aliexpress always present there for your help. Its shipping charges are very low around $1 – $2, this little amount is applicable not for every country, but for some. For certain countries, Aliexperss charges no shipping cost which means it is free of cost. Millions of products, you will find here. Aliexpress is a safe and fantastic option for dropshipping business. Aliexpress has many shipping methods, but ePacket is the best shipping method. There is one more benefit with Aliexpress and that is easy to cancel an order. If you want to cancel your order, there is a very easy process, you must inform the seller before he ships it out. You can find your payment back within 1 to 3 weeks from the date of closing an order.
- Worldwide Brands – It is a Florida based company. It contains a long list of certified wholesale suppliers. It helps users to find out reliable suppliers across the world who deal in every product category. Worldwide brands take a one-time cost of $299 for lifetime membership. They provide you one more facility if you are unable to pay full membership payment, you can pay it three installments, first is $99, second is $110 and third and last is $110. But this option is quite expensive. You can cancel your membership within 30 days if you purchase it by installment option but if you buy it with full payment option, you have 60 days to cancel your membership with a full refund.
- Oberlo – it is like a market place for e-commerce products. It is based on Shopify platform. Oberlo provides good quality products to those supplier or sellers who are interested in this business. Then those sellers deliver ordered products to the customers directly. Oberlo’s shipping charges are very normal as they offer three types of plan for you and those are : Starter – it charges only $4,90 per month, second is basic – it shipping charges are $29.90 per month and last is professional – it costs $79.90 per month. Oberlo takes 2 to 5 days to deliver your order. It has become easy for new shopify customers to search new and popular products, good pricing and merchants because now oberlo is pre-installed on shopify store, just sign in the shopify.
- Dropship direct – Dropship direct offers you a number of items which is likely 100,000 and mostly branded items. It gives you a free chance for trial. It keeps itself updated according to the fashion, latest trends etc. Dropship direct has no subscription charges but only for PushList they charge $9.97. They provide a free service of sign up. Shipping speed depends on the suppliers and the place from where you place an order. Dropship Direct offers you two ways of customer service which are email and phone.
- Sunrise Wholesale – It is based in Los Angeles. It directly delivers the ordered product to the client. It does business with 15000+ brand products. There is a great variety for you to choose any product to place an order. Sunrise wholesale ships your order within 1-2 days and you can get that within 5-10 days. It sends you a tracking number to your account so that you are able to check the status of your order from the sunrise wholesale website. It offers you a free trial of 7 days and its recurring fee is $29. There is no dropShipping fee but if you want to return your order, you will be charged approximately 20 % restocking fee.
- Wholesale 2B – When a customer order for something on your website, Wholesale 2B takes some commission from you and deliver the order directly to the customer. There is no dropship fee if you purchase by wholesale 2b but you have to pay credit card processing fee or restocking fee etc. wholesale 2b offers four different kinds of pricing plans which you may pay monthly or yearly. The shipping time depends on suppliers or carriers.
- SaleHoo – SaleHoo seems to be very helpful for you if you are interested in dropshipping business as it can provide you a large number of list of companies with which you can establish your partnership. Approximately 8000+ companies are in their network and all have been verified by SaleHoo team. Its membership cost is $67 per year at recurring basis. It offers you 60 days money-back guarantee also.
- Wholesale Central – they work in the field of clothing, electronics and leather goods. So they provide you a vast market for shopping. They provide free sign up facility. There are two options to do payment, one is half-year payment which is $399 and the second is yearly which is $598. They deliver your order within 48 hours. They offer their customer service in 10 different languages.
- Megagoods – It is based in Los Angeles, California. Its specialty is to deal with electronics items and video games. They offer you a great variety in this field more than 45 categories of every popular brand. They charge per order fee and 20 % restocking fee if you return your order. They offer 30 days free trial to decide that this is the service which you search for. But they have few formats to work with and images of products are available but not in store.
Best Payment Gateways For Online DropShipping Stores
- Paypal – Paypal is very famous and easy to use payment gateway for eCommerce store. It is used commonly nowadays and acceptable in above 200 countries. It accepts credit cards: visa, MasterCard, and many more. If you want to use it for your dropShipping business, just need a Paypal account. It is an international payment gateway.
- Stripe – Stripe is not an Indian payment gateway, it is US-based. It is not famous and used in common in India but it is mostly used in other foreign countries.
- 2checkout – It is also a popular payment gateway which is used in many countries more than 80 countries. It also accepts all major credit cards.
- Authorize.Net – it is one of the oldest payment gateway. It is very easy to use for credit card users. It takes very low transaction fee as 2.90 + $0.30 for eCommerce or dropShipping stores.
- Skrill – Skrill is a payment gateway used in many countries. It takes 1.9% for checkout transfer fee.
Best Payment Gateways Combos For DropShipping
If you are doing dropShipping business for the first time, it is better for you to use two payment gateways, not a single one. The reason for it is that in the starting, you are not aware and sure which one is better in use. So always use a combo of two payment gateways. Here I am telling you some of useful and reliable payment gateways combos:
- Stripe and PayPal
- 2Checkout and PayPal
- 2Checkout and Stripe
- PayPal and Skrill
- 2Checkout and Skrill
Use any combo which is suitable for your users.
Criteria For Choosing A Payment Gateway For DropShipping
It is a little bit difficult to choose a perfect payment gateway which is suitable and easy to use for you and your users. Here I am highlighting some steps for choosing a payment gateway:
- Choose that payment gateway which is popular and common in use in that country where you live and run your dropsShipping business.
- The payment gateway which one you choose charges low transaction fee.
- Ensure that it is easy to use and a good experience for your customers also.
- Check that it allows you to withdraw your payment in a short time.
- You should check that which one you select, allows you to establish a bond with dropShipping stores.
Best Dropshipping Tools (Paid)
- Shopify + Oberlo
- Inventory Source
- Live Chat Inc
- Zoho Mail
- Grasshopper Mobile
Best Dropshipping Tools (Free)
- Google Keyword Planner
- Google Trends
- Amazon Best Seller
- Google Analytics
- Clicky Analytics Tool
Which One Is The Best Dropshipping Option For You :
In my opinion, Aliexpress is the best option for dropshipping business as it has so many positive points. Its shipping charges are zero in many countries and if it applies some charges then this cost is very low only $1 or $2. If you cancel your order, your full payment is refundable. It is a very reliable service. So my support is with Aliexpress.
Countries Where DropShipping Business Runs At Its Fast Speed :
Payment Gateways Popular For This Business In These Countries :
- In America
Paypal, stripe, blue pay, amazon pay,
Payflow, payment express, kash, 2checkout, authorize.net,
Authorize.net, stripe, braintree, paymill, worldpay(direct)
Future pay, elavon, payeezy, bambora, bluepay, square
2checkout, skrill, stripe, amazon pay, securion pay
How Can A Seller Select A Product For His Dropshipping Business :
- When you plan to start a new business, your mind is full of so many ideas, planning, and many more things. This strategy applies in the case of dropshipping business too. To start this business, you can use Google Trends, follow the latest trends, people’s tastes, etc. to find new possibilities and to make your business successful.
- You can find products from social shopping sites. There are so many online shopping sites where millions of products are available. So go on those sites and search and observe the products on the basis of demand, popularity, categories, trends, etc. for your business.
- You should pay attention around you, your house, workplace, your friends that people take interest in which product badly, they can not live without which product, which one is needed by them and so many searches like this you should do to grow your business. If you will sell needy and demanding products, your business always earn profit.
- To select effective products for your dropshipping business, you should come to know in which direction the level of marketing competition is going on.
- You should always choose top – priority products to sell with satisfactory and affordable price range for every class.
Follow all these tips, you can run and make successful your dropshipping business. You will compel customers to come to your online store and purchase from you. This will increase the conversions of your online store and make you successful.
But as you know that every coin has both sides like black and white. This business has also both the positive side and negative side.
Disadvantages Of Dropshipping
- Dropshipping has become a very popular business. Everyone wants to do this and earn profit because it is very easy to get started with low investment. For this reason, competition has become much higher in this field. Because of competition, the profit margin in this field has become lower. People only keep profit in their mind when they start this business, and they usually ignore the goodness and level of their website and customer service are not also good, you can say, low class. After that customers leave their website and follow a good one so your profit comes at a low level.
- Another disadvantage of this business which affects the most is that sometimes, there are some mistakes done by suppliers in fulfilling the orders. There is not your fault but you are blamed and you will have to take responsibility for it. Because people know you, not those people who work with you behind the curtain.
So you can yourself decide that dropShipping is a profitable business if it is done with smartness, intelligence, hard work, with the knowledge of recent market values, strategy and like these other things.