How to Make Money Using Drop Shipping Business

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A lot of people these days are earning money doing business online or doing business in a real physical market.

You must pay attention to some things in the business like:

• Manufacturing of the product
• Packaging of the product
• Finding a place to store a product till it does not get sold
• And in case it is an online business, then there is another thing that you have to take care of which is the delivery of the product to the client’s house

A business involves a lot of hassles and also involve in them a lot of investment. Don’t they?

Now think of a solution where you can just get rid of these hassles which are involved in the business.

Yes, there actually exists such a kind of business.

This type of business is known as the dropshipping business. Here, you do not have to worry about the manufacture, storing, packaging of the product and so on.

In drop shipping business, you are only concerned about creating awareness about a particular product. And all you need to do is sell the products.

Rest is all the problem and hassles that the manufacturer or the owner of the product who has to deal with.

Once you sell off a product to a client, then the manufacturer is the one who is responsible for the product to get packed properly and then reach the house of the client.

Drop shipping business is a method of the supply chain management.  In this kind of business model, you who are the retailer does not have to worry about the stock of the product.

All you have to do is to transfer the details of the customer who has placed the order to the manufacturer or the owner of the product. It is the manufacturer who will get the product delivered at the house of the client.

Now you must be wondering the way and the steps with which you can start the Drop shipping business. So here are the steps which you have to follow to start a drop shipping business:

1. First of all you have to select a niche from which you will work.

Some points which you can keep in mind while selecting your niche are:

•  Sell something which is not locally available in the market.
•  Your product should be such which should trigger the buyers to buy your product immediately without a second thought.
• The amount of shipping should not be very high because this might affect the total amount that the client has to pat. So low shipping amount is very important.

# You should definitely look for a product that you can sell as your own and you can white label that product. Try to create your own brand.

2. Then the second thing is the research of the market in which you will work.
3. Third step is the most important step where you have to select the supplier with whom you have to work.
4. Then in order to reach to the client and make people aware about the product of the supplier, you have to build an e commerce website from which you can contact the people.

The fastest way to build an e commerce website is the one if you create it on an already established e commerce platform about which people know already.

If you make use of an e commerce platform to launch a website, you will not need much of technology knowledge and handling.

5. After you have done all this, then you need to develop and create a customer acquisition plan.

A great example of this with which you can reach to the customers and tell them about your product is through a campaign which you can do on a popular social networking website may be for example Facebook.

If you make use of these acquisition plans, you would be able to put and place your offer directly in front of your target market.

6. Once the plan has been created, then you have to analyze the plan and put it into optimization. In case if you feel that it is not working properly, then you need to make the required changes in the plan.

Some of you might be thinking that whether at all it is profitable or not to start a drop shipping business?

Then well, the answer to your question is that yes it is profitable to have a drop shipping business in today’s date.

The reason for this is the amount of e commerce activities which are taking place nowadays.

Of course the amount of the profit earned in the drop shipping business depends upon the product that is being sold but yes it is profitable to start this business and that too without any start up cost.

Moreover it is a hassle free business not causing any tension to you as a retailer.

In the recent years, the profit of drop shipping business has gone up to $4 billion which is a huge amount and this industry sees an increase of 7 percent year after the other.

This trend has been continuing since the last ten years now.

To explain this concept better, I will explain you this concept with an example. For example you as a retailer get a product from Ali express which costs you around $15. And you decide to sell that product for $30 after including your cost of shipping also which say might be around $5 to get this product delivered to your client’s house.

So the actual profit that you earn for only advertising a product and receiving an order with this model of business would be $10. So let us say that if you get 1000 orders also of this product which is actually owned by Ali express, the profit that you will make would be $10000.

You can make profit with drop shipping business without including any upfront costs and you are free from those hassles also.

Reason why you can go in for this type of business:

• There is no upfront cost in this kind of business. No investment or capital is needed to start this kind of business as needed in other kinds of business.
• The world is embracing e commerce. A lot of activities are happening over the internet along with businesses in different fields.
• The purchase of the different kinds of products and services has gone up like never before. Many people now a days prefer to buy products online rather than going to the local markets.
• It has become very easy to send and receive payment online. This is a trust worthy source of making the payment.

Advantages of the dropshipping business:

• Shipping takes a lot of time to make the product reach the house of the client. It is a very slow process and some times this time taken might cause inconvenience to the customers.
• If the suppliers do not inform you ( who is the retailer) about the stock then it might become a problem for you.
• The sellers do not have a professional attitude. They are mostly unprofessional in nature.
• In case there is refund or return of the product, then that also takes a lot of time.
• Sometimes the cost of shipping is very high. This increases the amount that has to be paid by the client. In essence, it may discourage the client from buying.
• Some times the customers do not actually receive what they had ordered as a result affecting your reputation.

Some of the solutions are:

•  Select your supplier with great caution and attention.
•  Do business with only those kind of suppliers who are reliable and those who only provide quality products.
•  Build a strong relation ship with your supplier. Try to get updated from time to time to avoid any kind of problems.
• The target market should be studied really well. You should know alternate to all the problems that you might face while doing business.
•  The product that you select to sell off should be selected with really high thinking. Choose only those products  which have great market and good sales. The products should be such which encourage the buyers to trigger buying in a quick way.

The business is definitely profitable. You do not also have to bear any upfront costs also for doing this kind of business.

Those things might be:

• Low cost of shipping. This is because the buyer has to pay for the purchase made.
• Getting updated about the stock of the product from time to time
• Make as many sales as possible.

If you keep these things in mind, then doing this kind of business is an excellent idea!!!