How To Start A Business Dropshipping Products

How To Start A Business DropShipping Products

Dropshipping is retail fulfillment method that allows you to sell products online without keeping any stock. By dropshipping, you will never see the products or handle them through the entire process of purchasing and delivery.
It is a business you can start almost immediately with less capital investment. In fact, it is one of the fastest ways to make easy and risk-free income.

How Dropshipping Works:

This is an online-based business where you have products listed on your online store, customers make a demand by clicking or ordering any of the products listed. Rather than you physically sending the product to your customer, the order is placed directly with your dropshipper who will send the item direct to your customer once he receives payment for the product. It is that SIMPLE!

However, this system has its pros and cons.

What Are The Advantages Of Dropshipping:

As with anything, drop shipping has its pros and cons, but the available options will allow you to make an informed decision.

The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory

1. It Requires Less Start-up Capital

For most people, finance is the stumbling block to starting a business for them. But with dropshipping, you can set up an e-commerce store without investing thousands of your currency in keeping stock or inventory. Whereas, a retailer will require a huge amount of money for stock in their visible store.

2. It Is Very Easy To Start A Dropshipping Business

When compared with a physical store, where you will need to acquire premises and pay for inventory upfront, with dropshipping it is an easy peasy process.

a). No worries about paying for a warehouse to store your inventory
b). Packing and shipping orders are done by the dropshippers, NOT you.
c). There is no inventory to track because you do not keep the stock

3. There Is No Need To Hire Staff

This means there is low overhead. You can basically work from home if you choose to do so. You can literally start on your laptop right now.

4. Flexible Location

Your business is online-based and you can practically work from anywhere in the world as long as you have access to internet connection.

5. A Wide Range Of Products To Select From

You can have as many products as your website can accommodate as you are not making any upfront payment for them. You can list as many products on your website as possible for as long as the item is available to sell from the supplier.

6. Work Less And Smarter

Because you are not responsible for all the nitty-gritty involved with most e-commerce businesses, you are passing the bucks to the dropshipping suppliers. Processes like additional orders will be carried out by the suppliers.

Disadvantages Of Dropshipping

Well, there is a price to pay for having an easy business model. Here are some of the disadvantages of running a dropshipping business

1. Low-Profit Margins

This is, however, the biggest snag in this business, especially if your niche is very competitive. Overall, because your starting and running cost is minimal, there is no cause for complaints.
But if your niche is well suited for dropshipping, your website is appropriately structured and SEO friendly; where you are able to drive traffic to your products, you are bound to be ahead of your competitors.

2. Out Of Stock Issues

Because you do not stock your products in-house, you are not able to predict which items are going to be available or not as the suppliers also service other businesses like yours. Therefore, you do not have a control over stock availability.

3. Shipping Costs

As a result of dropshipping through different suppliers, you are likely going to have different costs allocated to shipping. This can be a pain sometimes as a customer may purchase two items both from different suppliers that carry delivery charges. The best thing will be to absorb one of the costs yourself rather than passing them both to the buyer.

4. Errors

There are bound to be lots of ERRORS particularly if you are dealing with low-quality suppliers who will always cause you pain and bring down your reputation. Therefore, to mitigate against errors, it is paramount that you choose the best suppliers for your business to give you peace of mind and maximize your profits.

Now that you are aware of some of the benefits and downside to dropshipping, would you still like to consider this business model?

I think it is worth giving it a consideration if you are a savvy entrepreneur who would not let small issues get in the way of making a living through dropshipping products.

How Can You Make Money Dropshipping?

To start with, you will need:

1. An eCommerce website where you can sell your items from:
a). Open an eBay online store
b). Or your own online store using Shopify
c). Or create one with SaleHoo; options (b) and (c) means you will not have to pay eBay fees
2. Mark-up prices for profit are usually between 10-50%
3. A dropshipping directory.

How to Find the Best Dropshippers:

The internet is the best place to find drop-ship suppliers but there are also a lot of scammers out there who pretend to be good and legitimate suppliers.
Hence, when looking for a drop ship supplier online, you need to take the following precautions:

Check the age of the supplier’s site. Online drop shippers and wholesalers do go out of business all the time; either:

a) because it’s a hard business to be successful in, or
b) because they are fraudulent.

For these reasons, be very wary of dealing with new sites. Go to and enter your supplier’s full URL into the search bar. Check when the site was created by looking at the Registry Data and finding “created”. SaleHoo recommends using only sites which have been registered for more than 2 years.

The easiest way to find drop shippers that you can trust is through an online directory like SaleHoo which has more than 8,000 dropshippers, wholesalers, and liquidators.
Using a dropshipping online directory like SaleHoo means you are sure you will be dealing with verified suppliers you can trust.

Get this Free eBook: How to Dropship Items on Amazon with 100% Profit Margin

How To Start A Business DropShipping ProductsBottom line is to play it safe with your online business by making sure that you have access to verified drop shippers and wholesalers online.

This guide is for an entrepreneur who wants to sell on or, eBay or just to sell via your own private website using an eCommerce software.

You can start / set-up your drop shipping business within one week and take advantage of the Christmas business.

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