Dropshipping For Beginners- What Is Dropshipping And How Does It Work

Spread the word

Dropshipping

If you’re thinking about starting an online business, and you’re thrilled with the idea of opening an online store, but you’re not ready to have your own warehouse and don`t want to deal with the logistics you can choose using dropshipping. Basically, dropshipping involves a merchant using another company to provide and deliver the order.

Let’s take a practical example
  1. Emma wants to buy a watch from the internet and wants to be shipped to her home. She searches on Google and finds an online store called Stopwatch and decide to purchase it from there. She makes the payment and completes the delivery date.
  2. Daniel the owner of the online store, Stopwatch, receives Emma’s order. He has a dropshipping partnership with Aliexpress and all he has to do is to enter to AliExpress website and place the order, the watch that it purchases at a low price.
  3. When Aliexpress receives the order, it delivers it directly to Emma by putting the Stopwatch address to the sender’s name.
  4. Emma gets the clock without knowing that AliExpress was involved in the process of buying the product
  5. Daniel has a satisfied customer and gets as profit the difference between the price on AliExpress and the price that Emma paid on his online store. Daniel does not have to think about storing the product and delivering it but optimizing the website to sell as much as possible.

How does Shopify help you do dropshipping?

You create an online shop on the Shopify platform, take the orders through your store. Then you send it to your supplier and he will handle the delivery of the product. Using this method, you will run only the website, not the delivery. You order the product on AliExpress and you pay it out of your money. The delivery is made to the customer’s address.
In order to pay your first orders, you need to have money to invest.
Eventually, the money is in your account in 3-5 days, depending on the agreement you had with your payment processor.

It is important to make sure that orders were done properly. And to do that, communication between you and your supplier (AliExpress) must always be functional.

Shopify has the tools to help you with that.

Oberlo is an extension that helps you send products to customers without having inventory, with a few clicks you can send products directly to customers without thinking about the storage space.
Oberlo is free for 30 days with all the features of the included software and has a Starter Plan for $4.90 / month.  When your business grows, you can reach Pro Plan with $79.90 / month.

Dropshipping is an easy and profitable e-commerce method, you do not have to invest very high.It requires only a website (the online store) without any product, deposit, delivery methods, sellers.
The profit you make it depends on you, on the products you choose and the advertising you make to the website. The products are not going to sell themselves.

Why do you think all the large Chinese companies have a dropshipping system?

Because it’s so hard to sell something if you aren`t doing marketing and you do not invest in promoting them.

If it’s not for you opening an online store you can try blogging as a way to make money online.
To be successful in blogging you need to find a niche that suits you and your website can generate a lot of traffic so that you can monetize the audience by selling or promoting the third party products.
For those, at the beginning of affiliate marketing, we recommend Wealthy Affiliate, the place where you will find all the necessary materials to start your own online business. What`s more, you can create a Free Starter account, so you can start learning step by step the basic on how to make money online like a pro.

 

We hope we helped you with this article. If you have any further questions please leave a comment.

2 thoughts on “Dropshipping For Beginners- What Is Dropshipping And How Does It Work”

  1. Drop shipping is a great way make some money online. Thanks for the great post. I am thinking about getting into dropping shipping. It could really help to open up an extra income

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.