By the way, everyone does online shopping and anyway, sometimes we need it. Ever since the lockdown has come, many of us are ordering essential things online. Drop shipping business is all about online shopping.
In today’s article we are going to talk about how you can earn by starting your own drop shipping business.
What is Drop shipping Business
First of all let’s talk about what is drop shipping business. Whenever you order an item from an online website so usually people think that your ordered things is brought by the company so it is not. Whenever you place an order, that company sends that order to an associated retailer, shopkeeper or a wholesaler. Then the retailer, wholesaler or shopkeeper linked to that online website delivers your placed order to your address. This third party supplier that is linked to the website is called a drop shipper and this is the business of drop shipping.
In drop shipping business, one can sell any product to the customer for more money without buying it and can earn a lot of profit. Now let’s talk about how the business model works. No inventory required to do this business through online and there is no need to buy and store the product. Apart from this, website does not have the responsibility of delivering the order that placed on the online website nor the person that running the drop shipping business. This work is done by the shopkeeper or wholesaler who sells the product.
Any website such Amazon, Flipkart or Nike do not own the products given on their website. They only keep those products for display on their website. Only websites allow products seller to use their platform. This raises their sell and many shopkeepers and product makers companies get introduced done through this website. This leads to profit by drop shipping and selling products on a large scale to the website. Now let’s talk about how to make money through drop shipping.
You have to extract your profit from the products that customers buy through drop shipping. Means if the price of a product is 100, then you sell it for 120 and that’s your profit. Therefor the wholesale price of whatever you are selling should be much less than its selling price. So that more and more customers come to the website and there are more chances of profit.
Apart from this, many companies are also added shipping charge with the wholesale price and some companies charge shipping charges separately which you have to give out of your profit to the drop shipping business. That’s why most people already add shipping charges to the selling price of the product so that the profit can be generated from there.
Now after knowing this, if you want to do drop shipping business, then you will also need a drop shipping supplier because any business runs between demand and supply. You can also have your own online website to do drop shipping business and can also act as mediator between online website and supplier. First of all you have to choose the product which you want to sell then you have to get that item from the drop shipper supplier. Right now it depends on you that what will be the price of that product and in how many days it has to be supplied to the customer.
After a deal is made with the supplier, he allows you to sell his products on any website and you can sell his products by putting the photos on the website. After that, as you get the order on the website, you send that order to the drop shipper supplier and then he delivers that product to the customer. Even that there is some drop shipper supplier who delivers substandard goods to their customers that’s why you have to choose the drop shipping supplier carefully who deliver good quality products to the customers.
Because you must have seen that when people order mobile online on social media, then soap is sent to them because of this, the reputation of online website is bad and they raised finger at that run the drop shipping business and you have to bear the loss in your business. If you have created your own website and also want to do drop shipping business, then let us think about what kind of products you have to sell.
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