Recently, such a kind of business without investment as dropshipping has become quite popular. Dropshipping is a system of sales that involves the direct transfer of goods from the supplier to the buyer. Dropshipping entrepreneurs willingly act as intermediaries: they find a client, place an order, and then pass it on to the seller, who is already engaged in sending the goods. Today there are a lot of dropshipping success stories worldwide. Let`s consider dropshipping business.
After an agreement with a manufacturer (children’s clothing), you create a website or page on social networks, upload products photos, descriptions, and prices. In the case of an order, you get the payment from the buyer, send to the supplier the amount agreed and the supplier sends the goods to the buyer (on your behalf). All you need to do to get started is to find a dropshipper supplier and create a website (a group in social networks) with an offer to buy something.
Why dropshipping is a successful business model?
- Minimal investment. Large financial expenditures are not required, you only need to spend money on the promotion of goods.
- The possibility of experimenting with different suppliers and goods. Because you don’t need to buy products, you can offer different kinds of goods. For example, if you sell children’s clothing, you can simultaneously sell overalls of one manufacturer and shoes of another. You can provide a very wide assortment in your online store thanks to cooperation with different suppliers.
- You do not need to look for storage space. And also worry, since you do not buy products and are not engaged in their storage.
- You do not solve the issues associated with the delivery. Thus you do not need to pay for a courier or take the goods to the post office, all this is done for you.
- You are the only one who defines the price. The supplier sets a certain price for one unit of production, and the size of the extra charge depends on you. You can research your competitors and set a price that will be more attractive to a potential buyer.
- You work with the existing catalog of goods. You don’t have to invent anything new, the supplier provides you with the pictures of the goods and a detailed description, all you have to do is to upload the information to the sales page.
- Almost all manufacturers, working on dropshipping, provide services for the return and exchange of goods. If you choose a good supplier, you won’t have to worry about the customer not being able to exchange a product that didn’t fit him or her.
- Working on the dropshipping model, you will be able to form a client base faster than if you were to promote products that you produce yourself. This is due to the fact that you can devote more time to advertising the product, and not engage in its production, packaging, and delivery.
- The dropshipping 2022 model can bring a good income and become a great way to earn money.
Dropshipping is a relatively new business model. It became widespread in the early 2000s when a problematic situation arose due to the fact that most goods were produced abroad, and you had to wait a very long time until they reached from the manufacturer to the intermediary. Since that time this business model was actively developing.
After the 2008 crisis, China took over the leading role in global production. Then that most entrepreneurs began to actively contact suppliers and negotiate for the delivery of goods to their customers. Today there are a lot of dropshipping success stories that you learn and use in your work.