Dropshipping has become increasingly popular in the contemporary world nowadays. It has penetrated everywhere – into the economic systems and networks of large markets. But what is dropshipping? Is it easy to develop this concept and the principles of its work, or is it very difficult, almost impossible?
Dropshipping is a system of commodity-money relations where the seller does not produce a product and does not store the goods in his warehouse, but acts as an intermediary between the supplier and the buyer. What is the profit of such work? The fact is that the seller makes a profit from the markup on the cost of the goods from the supplier. Dropshipping is explained in more detail in the article.
So, dropshipping can be called any online store today. The most striking example of successful dropshipping is AliExpress, which has firmly established itself at the global level as an international leader in Internet sales.
How does dropshipping work?
Have you ever wondered what this whole process looks like from the dropshipper side, for example, the same Aliexpress? Let’s take a look and see if the principles of dropshipping work are easy or it is very difficult.
- The creator of AliExpress at the beginning of his journey chose a niche in which he wanted to trade, which later developed into a variety of things sold.
- Then, the service found a supplier who will provide him with the entire product.
- After approval, AliExpress posted a catalog of its products on the website of its online store. The company sets the price with its own margin, the amount of the margin of which will then go to its capital.
- The creator carries out an advertising campaign for his online store in all possible ways to attract the attention of buyers and convince them to purchase goods.
- The buyer came by advertising, put the product in the basket, issued it and paid
- AliExpress notifies the supplier about the registration of the goods. The supplier from his warehouse sends the goods to the customer through a logistics company.
- The company paid the goods to the supplier at the wholesale price, and itself took a percentage of the margin as a profit.
As you can see, the scheme of the principles of dropshipping is quite simple. But each simple scheme has its own nuances, and dropshipping is no exception to the rule. It has both advantages and disadvantages. On the one hand, the obvious advantage is the minimal costs of organizing such an enterprise, the absence of responsibility for the design, packaging and delivery of goods and the absence of a specific geographical reference to the store. And on the other hand, everything is quite complicated here. Firstly, there is too much competition between sites, and in the case of large sites – between suppliers’ goods. Also, in case of any problems, it is the online store that will be responsible, not the seller.
Thus, dropshipping outwardly seems easy to master, but in fact it is very difficult. Even entrepreneurs who are knowledgeable in marketing and have the right personal qualities face problems. But there is a way out that will greatly facilitate the work of an online store running on dropshipping. We present to you AliExpress plugins, which you can read in more detail at the following link . Plugins will save you time and fill your work with only positive emotions from using them. Many dropshippers started their journey with their help. Why don’t you try it too?