Drop Shipping is one of the online business opportunities that allow you to make money by selling products online without you investing your own money on the products.
With dropshipping, you can start your own ecommerce website today and have a product inventory worth hundreds of thousands of dollars without investing your money in buying the products. Despite the next to zero investment, you will still make money like any other ecommerce website owner that has invested hundreds of thousands of dollars in their own product inventory.
So, how does this work?
Well, that is what you’re about to find out!
Please Note; I will be interchangeably using both spellings of “Drop Shipping or Dropshipping” in this content, but both does mean the same thing. The reason I’m doing this is so that you don’t get confused when you come across other contents that uses either of the spellings to explain drop shipping.
Table of Contents:
- What is Drop Shipping?
- Is Dropshipping legal?
- How can you get started in Drop Shipping Business?
Let’s get started!
Dropshipping has always been one of the online business opportunities that are underutilized simply because most people that claim to be using this business method to fulfil the orders don’t seem to fully understand the processes involved in dropshipping.
A good example is this; recently I spoke with someone that claims to be using dropshipping to fulfil his ecommerce store orders, and after looking into his business process properly, I realised that he was not actually drop shipping. Although he was partly using the dropshipping method because he was not using his own money to buy the products but he still ends up with the responsibility of postage.
In the real world of dropshipping, you don’t use your money to buy the products and you’re not involved in the shipping process either.
Dropshipping does have a clear process and all you need to do is to have a better understanding of the process.
Before I continue; let me start by explaining what Dropshipping is all about and how you too can get started in Drop Shipping business.
What is Drop Shipping?
Drop Shipping is a product supply method by which the product retailer (you) does not own the products they are selling. You don’t keep any physical inventories of the products you are selling, you don’t use your own money in buying the products and you don’t get involved in the shipping of the products to your customers.
I believe it sounds simple, right?
But the truth is, it’s as simple and straightforward as it sounds!
Please see the diagram below:
To give you more details about dropshipping process:
The process implies that you find product’s that are in high demands (preferably cheap), you add some amount to the seller’s price and you then list the product’s for sale on marketplaces like eBay, Amazon or your own ecommerce store.
The key is; you only buy the products from the seller (the product owner) after you have sold the product’s to your customers and have received the payment.
Basically, you will be paying the seller of the product with the money you receive from your customer, and then you will instruct the seller (the product owner) to ship the product directly to your customer without any documents disclosing the source of the product.
Also, the invoice and any other related paperwork will be sent to you by the seller, while you will be sending your customer your own paperworks if required.
You might want to check-out this awesome FREE Training on Dropshipping that I believe will be very helpful to you.
Please Note: Dropshipping is not a “Get Rich” opportunity!
Dropshipping is a real business that requires business-related activities. Meaning; you definitely have to put in the efforts and required work if you truly want to achieve success with drop shipping!
I totally agree with the fact that drop shipping can be a life-changing business opportunity, but only if you take your time to learn and understand the process.
In drop shipping; only one product can make you an unimaginable amount of money. Although, that mostly happens when you pick the right product’s that is with high demands and a low-cost product that gives you margin for profitability.
Is Dropshipping legal?
Yes, dropshipping is completely legal. The business process of a store using dropshipping and the none-dropshipping store is the same; the only difference is that one store physically own and stocks the product inventory, while the other store does not physically own or stocks any product inventory.
What you possibly don’t know is this; a lot of the big ecommerce stores also dropship from other online stores. In some cases; some of them are completely using dropshipping to sustain their business.
The point is that every business wants to lower their overhead cost, and that’s what dropshipping simply allows you to do. You don’t physically stock any product inventory of your own.
How can you get started in Drop Shipping Business?
It’s a Complete Guide to running a Successful Dropshipping eCommerce Business.
Getting started with dropshipping might sound overwhelming sometimes but it’s not. You just have to learn the process and you will be amazed how quickly you too can start running your own drop shipping business.
One more thing; if you’re considering alternative ways to make money online apart from dropshipping; I’ll recommend you read our well-detailed content about Affiliate Marketing.
In the meantime; I wish you all the best!