Dropshipping is one of the largest online businesses grossing millions in profit a year. Most of these sites were created with 0 or little money invested. And once created succesfully, will lead to a large passive income source with little effort to maintain. This article should give you an understanding to what dropshipping is, and how you can set up your own dropshipping business.
So what is dropshipping and how can you get into business?
Dropshippers are simple: their the middlemen between the producer and consumer. Like how Walmart connects producers and consumers but for the internet. Dropshipping is simply connecting a seller who’s selling low, and a buyer who’s looking to buy at a high price, and keeping the spread as profit. But unlike Walmart and other stores, you won’t have to store the inventory. This means there aren’t any of the expenses that brick and motar stores have. It also means that there aren’t any startup costs: except some initial hard work.
So how do i get started?
There are 2 ways to begin dropshipping. One is through ebay and another is by making your own website. While dropshipping on ebay is eaiser, it has risks and is lower profit+ requires more work maintaining. Both include buying low from aliexpress.com and selling high.
Selling on ebay is simple. 1st: you go to aliexpress and find a product. 2nd: you upload all of the product’s photos and description from aliexpress to ebay. 3rd: wait till a buyer buys and then ship the product from aliexpress.
Here’s an example: Ebay(4.99) vs. Aliexpress (2.63)
As you can see, the dropshipper is selling it at a $2.36 spread. Him having already sold about 4,000 of them gives him a profit of $9355.04. Just remember that Ebay charges 8% of the final price. Also you have to remember to put in the description that the product comes from china and that it’ll take up to 39 days. Otherwise a customer will probably complain about not getting it within a week and get a refund. Bad news.
The next idea is to make a website. It sounds complicated but it really isnt. The easiest way to do this is through Shopify and Oberlo. You get a 2 week free trial with shopify, so you won’t have to pay for that. Otherwise its $29 a month. The sales in your first 2 weeks should cover the $29 otherwise you might consider your website a failure and just cancel. Oberlo is free and makes the whole process of creating your website simple. You simply choose the product from aliexpress and Oberlo lists it automatically on your site. It also makes the shipping process easier and quicker. It fills in all the buyers information into Aliexpress so you just have to press a few buttons. To get people onto your website you can either spread it through free advertisement, like spamming Facebook and Reddit, which takes lots of time and is relatively ineffective(but can still work). Or you can make Facebook ads. People love Facebook because of its cheap prices. The idea is that you get more money in profit than money spent on advertisement.
Things to Note
Dropshipping isn’t easy. In fact, a lot of dropshippers fail. The first and most important decision you have to make is choosing your product. Go for a niche that nobodies done before. The market is full of watches and phone cases! Do lots of research on this. Also do lots of research on advertising and on dropshipping in general. Obviosuly this is just a start for you, and your journey will take lots of research and hard work! Good luck!