You do not have your product or merchandise. You don’t produce anything. You don’t have a store. You don’t even have any special funds to invest in. Yet, you sell goods and make good money. It sounds like a scam, but it isn’t. Dropshipping and platforms like Shopify allow you to become an e-commerce expert. Here’s how to do it in 2020.
What is Dropshipping?
Nowadays, thanks to the internet, it is quite feasible and legal to trade goods that are not in your possession but are located on another continent. What’s more, you can even sell it to someone on a third continent – and you do it all by sitting at your house or a nearby cafe. The virtual world has brought many new opportunities and new jobs. It provided entirely new forms of commerce and business. One such is dropshipping – and platforms like Shopify have flourished along with this type of business. How to start a business and become successful or even become an expert in this business – we will try to reveal in this text.
How Does Dropshipping Work?
Dropshipper is a middleman selling certain products. The expansion of the economy and the development of the internet have enabled thousands of people around the world to do dropshipping. Manufacturers like those from China make everything and have a huge stock of goods. Internet drop shippers select these goods on portals – and then sell them online. However, drop shippers do not buy goods, they are not resellers – they just forward orders. Their main job is online marketing.
What does this Business Model look like?
In short, the dropshipping business model looks like this:
- You have your online shop where you sell various things or even one single thing.
- You are not the manufacturer of the goods, nor do you have any of those goods in stock. You never physically touch the goods you sell.
- You are only marketing manager – bringing people to the site, doing conversion optimization, etc.
- The goods and stock are available to others – mostly in China, but may also be local.
- The manufacturer deals with the production and receives from you X orders per day, which they pack and send to people who have ordered products from you.
Before you think this is some kind of “easy money” – it may seem simple as we wrote it – however, to do this requires an extremely good knowledge of marketing, social trends, and the psychology of people. In particular, you need to have a very good understanding of what a sales funnel is, and perhaps most important of all – a sense of people and their passion.
This Is Not Affiliate Marketing
Dropshipping is actually incomparably better than that as you grow your brand. At first glance, it looks like this is some kind of resale of goods, but it’s not. This is infinitely more sophisticated, and it even allows you to grow your global brand yourself – a thing that wasn’t so easily possible until recently.
What Is The Shopify Platform?
This is a comprehensive platform that helps you to open your online store. With its help, you can pay and manage your merchandise inventory. You can do it all this from one place without having to manage the technical aspects of a website. If you want to find out more about it, including the info about creating a complete design plan based on your needs – check out this website. The Shopify platform is proven and secure, but the smallest package on it is $ 29 a month. In addition to accounts on this or some similar platform, you also need to have your domain. At mybestwebsitebuilder.com you can read the complete Shopify reviews.
What Does The Dropshippers Shop Look Like?
Let’s make one drop shippers shop, so you will get a clearer picture.
The first, and probably most important, step is to spot a passionate group of people on the Internet. People who like to buy certain things. These may be a group of people “who go for nice watches” – but this is just the idea – and you can think of another 1000 or so.
This Is What One Dropshippers Shop Looks Like
You can build your shop on the Shopify platform. All the things you offer in that shop are never getting into your hands – they are in China and you dug them up, say on AliExpress. You set your prices as much as you think your visitors are willing to pay. The orders you receive are forwarded to the Chinese, where these items cost surely one 3 times less. They pack it and ship to America or another location for a $ 2-3 postage – and products arrive in like a week. Dropshippers usually claim that shipping is free – so they are included in the price.
The Advantages Of Having Your Online Shop
There are some even more efficient marketing approaches, but you will learn them in time. You are probably wondering why would people order from your website instead of going to AliExpress and ordering it themselves. There are several factors – first, some do not know about AliExpress, others who know are distrustful. The third factor is – you, as the owner of this shop have to make a theme shop where you will select the best things. So there will be no lost time for your visitors to search and compare on their own. Read more on this link if you want to start your Shopify store!
Sending Packages And Cash Flow
You may be wondering what happens when someone buys products from our shop. Where the money lies, and how it is forwarded to the suppliers? First, when someone orders in our shop, it has to be on some account, right? Shopify allows us to link various payment orders. PayPal is the easiest. However, not everyone will pay with PayPal, someone wants to use a regular card. In case of any complaints or anything – you just return people’s money without any argument. That alone pays off. Of course, that is why it is important to choose something that is of good quality in the beginning. If you’re not self-directed – look at AliExpress ratings and social proof signals – comments, ratings and action ratings – there’s a whole logic behind that.