Everything You Need to Know About Dropshipping
With the increasing demands of online shopping, dropshipping proves to be one of the most versatile online business opportunities.
Did you know that the global dropshipping market was valued at USD 1022.2 and is expected to grow at a rate of 28.8% from 2019 to 2025?
From young graduates to home-stay women, dropshipping open arms for everyone to earn a handsome amount of money without any inventory involved. With an average success rate of 10-20% and we can already see the numbers doing their magic.
If this has intrigued you to ask what dropshipping is and how can you start your dropshipping business, this comprehensive guide PretACover is for you, here you will learn everything you need to know and understand about dropshipping.
What is Dropshipping?
Dropshipping is an order fulfilment process where a store doesn’t keep the items it sells in stock. Instead, the store buys items in bulk from a manufacturer and then resells the products directly to the customer. A prominent difference between dropshipping and the standard retail framework is that the seller doesn’t stock up or own any inventory. But, he acts as a middleman who purchases the merchandise from a third party (usually a manufacturer or a wholesaler) to fulfil the consumers’ demands directly.
How does Dropshipping work?
As mentioned above; the process involves three parties explained below:
1. Customer books/orders products online on an e-commerce website
2. The drop shipper receives the information and picks accordingly from the manufacturer
3. The supplier collects your order, packs it up, and delivers it directly to the customer
Long story short, the manufacturer produces the goods and sells them in bulk to the wholesaler, which further turns around to resell to the retailers. Distributing work between each other makes it easier to buy and sell more products in less time.
However, dropshipped items may have slightly higher rates as the drop shipper sometimes includes a specific commission. Though the commission is very huge, it can still serve as a good source of part-time income even if you spend a few hours per week.
Once you’ve gathered sufficient capital, you can invest it back in bringing up equity and allocate more resources to other fundamental needs of dropshipping such as advertising, brand building, customer engagement, etc.
On top of all, the best part about running a drop shipping business is that you won’t have to buy or rent a brick and mortar store which may increase your expenses a lot more than before.
The triangle connects at all ends, making it straightforward for the drop shipper to get an order, a reseller to ship it, and a customer to receive it.
What are the Benefits of Dropshipping?
1. Easy startup
Unfortunately, there are very few businesses that are easy to set up and don’t call for a huge investment, and drop shipping is one of them. You don’t need a separate warehouse to pay monthly rent, nor do you have to fuss about stocking, supplying, employee salaries, and other stress that comes along. This means, you can start your dropshipping business without a store, bulk stock, prior experience, and knowledge.
Once you have the right plan and strategy to execute, all it requires is a reliable manufacturer and reseller who can work to fulfil the orders.
2. Low overhead
Unlike other businesses, dropshipping is pretty straightforward as you have two other parties to manage the workload. Other than increasing orders and their processing, there are no more factors to worry about, for example, wages of the workers or rent of the office, etc.
3. Location independence
One of the most impressive benefits of dropshipping is that it gives you freedom of the place. This business does not require any office or structure. All you need is a laptop and a good internet connection to work anywhere in any way you want.
4. No restrictions
The reason why many people work as part-time drop shippers is that they’re not answerable to anyone. It’s similar to being your boss and working freestyle that suits you. Since you don’t have to stock up on products yourself, you have the flexibility to add variety to the products that can sell well.
How to make profits from dropshipping?
With the given definition, the framework depicts the idea that dropshipping connects the consumer to the supplier and fulfils the demands of the product. By connecting these two, drop shippers earn a hefty commission and profit from the products they sell.
PretACover does the same and helps you reach a wider audience than you come across from a regular business. The best way to make profits from dropshipping is by understanding the model and functions of the business. Once done, set up a base for work and find a platform like PreACover that lets you start a dropshipping business right away.
How is dropshipping different from e-commerce?
Dropshipping is an e-commerce business in which retailers sell items without having an inventory. The main difference includes; how the orders are fulfilled and who has the inventory/stock. Luckily, there are a number of e-commerce websites that allow both individuals and brands to come together and sell products without worrying about anything.
What industries and niches are the most successful for a dropshipping business?
Needless to say, dropshipping is a very diverse industry with huge room for opportunities for niches such as:
Here are the Top 10 most profitable Niches on the internet to help you start:
Fashion and lifestyle
Baby products
Fitness and sporting goods
Beauty products
Health products
Pets’ accessories
Gadgets and technology
Car accessories
Eco-friendly lifestyle items
Home decor
Dating and relationships
These niches are popular because the demand is increasing with time. There are many service providers and clients available.
How to find a profitable niche for your business?
Finding a profitable niche to kickstart your dropshipping business isn’t rocket science if you’re clear about the requirements and demand of the customer.
Here’s a quick breakdown of some easy ways to find your ideal dropshipping niche.
1. Look for niches with in-demand products
2. Consider niche that has products with low prices and high profits
3. Avoid high ticket product niche
4. Go with your interests and passions
5. Check trending Amazon niches
So, to sum up, answering the most important questions.
Is dropshipping worth it?
If you want a decent income from your startup, then drop-shipping is your thing. However, you would have to invest your time and efforts alongside. The results might take some time to come up to your expectations, but once you master the business module, it will be all worth it.
Is dropshipping profitable?
Yes, it can be very profitable for merchants who can smartly manage to buy and sell the products simultaneously. Although it’s a low-risk business model that does not require huge capital or high running costs, you can still earn good profits after spending the expenses.
Is dropshipping illegal?
Dropshipping is amongst the most highly-progressing business models utilised by numerous worldwide retailers and is entirely lawful. Like any business, fulfilling client assumptions and building a brand that resounds like the right crowd is the only key to long-haul achievement. The most common concern drop shippers have is not having reliable suppliers that make dropshipping a breeze for you.
The modern-day business world direly needs trustworthy dropshipping platforms to satisfy the demands of customers. If this blog has convinced you to look and try into the business of drop shipping, PretACover could be the ideal platform for you to start with.
Why PretACover? PAC platform is seeking to meet the demands of people interested in modest lifestyle products to create a growing business.
Put simply: it is a customised print-on-demand dropshipping modest lifestyle product platform for creative souls to find products, sell them off, and earn a good profit.
It empowers young individuals to create a risk-free profitable business by choosing, designing, and selling products without investing in inventory and stocking. It is an excellent start for creative heads to sell print-on-demand products and establish a name in the modest lifestyle industry. Sign up for early access and get notified when we launch.
