Dropshipping is something that is like running your online store without having any stock. If any of you are curious about dropshipping and how it works, then this article is going to clear out a lot of things for you.
Here are the top 15 unknown facts about dropshipping:
1. You set the price and pocket the difference.
In this, you are the retailer, and you only market your business online. You take orders from your customers and then transfer them to the manufacturers or factory owners, and they ship them directly to them. You set the price and keep the difference between the price paid.
2. It is older than the internet.
This might shock you, but it’s true. Mail-order companies used to directly connect to large retailer companies in order to sell the products. Only it wasn’t called dropshipping back then.
3. Startup costs are low.
Yes, it is a very low-cost business startup, but the cost isn’t zero. You will have to invest some amount of money in internet campaigning as it is not free.
4. AliExpress is a boon for dropshipping.
Most of the goods sold in dropshipping come from China. However, the shipment wasn’t easy until Alibaba released its online portal, AliExpress. It helped people a lot and made their work much easier.
5. It targets impulse buyers.
According to research, most of the people who buy from dropshipping are impulse buyers. They target those kinds of people only, and it makes their market grow even more.
6. Some people in dropshipping make over crores in a year.
If you have a real talent in this business, then you can really make a fortune out of it. People who know exactly how internet campaigning works, then it is going to help you make money more quickly.
7. Most people fail in the first month.
According to research, most people in this business fail in the first month. Mostly because they think that their business is not doing good and they are not making enough money. You need to have patience and learn various skills.
8. It is all about finding marketing niches.
Well, you might be thinking, what kind of products should I sell? Then the answer is any kind of product. Until and unless you have the skill to sell it or market it, you are going to make huge in this area. Just make sure that you are an expert in this field and that you are going to do well.
9. Novelty goods work best.
It is not just about finding any good. For example, selling T-shirts or home decor is something your customer can buy from any other store. You just need to step up a little more and come up with ideas that are not very common. This will make you stand out and build a good customer base.
10. Use search engines.
This thing will help you in finding those things that are high in demand and have low competition in the market. This way, you will have the edge over other people in this business.
11. Lower margin as compared to online retail.
As compared to online retail, the margin is lower. In online retail profit margin is around 30%, but in this, it is close to around 10%.
12. Dropshipping trademarked goods are illegal.
Anything that is trademarked is illegal to use for someone else to sell who doesn’t have its license. So be aware before doing such stuff as it is going to charge you a huge fine.
13. Slow shipping time is part of the deal.
It is not going to be as quick as Amazon, where you order something today and get that product the very next day. It is going to take at least 2-3 weeks. If you want to do this business, then make sure to convey to your customers the ideal delivery time.
14. Finding the right supplier is key.
You can’t just go with any of the suppliers. You might get a lot of orders, and the supplier doesn’t even have that much stock with him. This will just harm you, and you will have to do a refund. Only go with the suppliers who have good reviews.
15. Dropship by exploiting price differences in online retail.
You can compare the price of a product from two different online stores and sell it on the other while buying it from the cheaper ones. This way, you can make money in an easier way.
So these were some unknown facts about dropshipping. It is a very good idea as you will be your boss and you will have the liberty to work on your way.