In the era of e-commerce, there’s hardly a person who has not heard this word. If you have ever wondered “What is dropshipping? What is all this hype about?”, this article can explain it.
What is Dropshipping: definition and main principles
Dropshipping is the form of retail where the reseller (and you actually are the reseller) collects orders from customers and transfers them to the actual manufacturer or another reseller (supplier).
In this model dropshipper doesn’t possess any stocks, he only markets the goods. However the reseller markets the goods setting the prices that are pretty higher than the ones set by the supplier, this difference is your profit.
When you open a retail store, you have 2 choices: to hold inventory, or not. You can buy products in bulk, unpack them, and ship them to your customers as you generate sales. OR, you can find a wholesale distributor (supplier) who will warehouse the items for you and ship individual items directly to your customer.
Drop ship, “pack and ship”, “direct fulfillment” – they all mean the same thing. A supplier will ship the item to your customer for you, and you never have to handle the product. Drop shipping allows the reseller to focus on marketing the business and eliminate the hassle, time, and cost of dealing with the actual products they are selling.
In dropshipping model although you don’t need to stock the goods you will still need some money at the very start. The reason is when you receive the order from the customer the money he pays won’t transfer to your account immediately but will be frozen for the safety reasons. At the same time you will have to pay for the order to the supplier which will require your own money.
How dropshipping works
What is dropshipping and how dropshipping works can be clearly seen in this video:
Is dropshipping worth trying?
Dropshipping business has numerous benefits:
- It’s easy and cheap to set up and manage
- Your risks are very low
- You can run your ecommerce business from anywhere, so it is highly mobile
- Your possible profit and scale of your business are practically not limited
- You can combine dropshipping with other working activities
But you should be ready to some potential pitfalls:
- You badly need reliable suppliers
- Level of competition is very high, so you should have a deliberate promotion strategy
- Shipping issues and inventory management can complicate your customer service
If you have weighted all pros and cons, but still doubt whether dropshipping is profitable, meet our heroes of ecommerce. Here usual guys from different countries share their stories of successful dropshipping journeys.
But how can dropshipping store compete with market giants? We know the answer and are ready to share it with you. Our research shows why and how you can beat retail titans.
If you have no idea how to find dropshipping suppliers (and trusted ones!), this article will be a useful aid and will help reduce risks for your business.
What is AliExpress dropshipping?
AliExpress dropshipping works the same way as the traditional dropshipping business model. You copy the product from AliExpress to your own store, set your own prices/markups, and after you sell a product, you purchase it from AliExpress and have it shipped directly to your customer.
Dropship business with AliExpress has numerous significant advantages.
First, you can use their product images, full descriptions and reviews. It saves tons of time, especially if you have suitable software to import everything you need to your site.
Second, it’s easy to find reliable wholesalers. You see all the ratings and customers’ feedback. You don’t waste your time on disreputable suppliers.
The assortment is hard to imagine. The prices are so favorable. They have customer service. They deliver worldwide. What more could you ask for?
What is AliDropship
AliDropship is a company which offers effective automated solutions for profitable dropshipping business with AliExpress. Our specialists have vast experience in software development, marketing, management – and dropshipping!
Our powerful WordPress based plugins allow you to launch your own webstore at a stroke! You can promote your store in social media using innovative Social Rabbit Plugin created specially for SMM. Our effective add-ons will boost your sales. AliDropship team provides all necessary services and lifelong support.
We have our own dropshipping stores with excellent profits. So we know this online business from the inside, with all its ins and outs. With AliDropship you don’t need any special knowledge and experience to become a successful ecommerce entrepreneur – you need only a strong desire.
How to start dropship business
Perhaps the easiest and most convenient way to start a business is to create an online store with the help of AliDropship plugin. It is the most powerful plugin for creating AliExpress dropshipping online stores.
If you want to save your time and efforts, you can order a custom ready store – unique and optimized. Besides, you’ll be assisted by a personal manager to supervise the process.
We also advise all dropshipping newcomers to watch this valuable video tutorial to learn all the secrets of launching an awesome webstore.