Everything you need to know about dropshipping, find all the tips, tricks and techniques for dropshipping suppliers, products, systems and methods.
What is Dropshipping?
With dropshipping you sell other people’s products via the internet from your own company. So you are an intermediary with your own business.
This differs from affiliate marketing because with affiliate marketing you send visitors to someone else’s website and possibly receive a commission. With dropshipping you get these visitors yourself, they also pay you and you send the order to the supplier.
In this way you can sell a lot of stuff via the internet without having to stock it yourself or having to delve into it.
The nice thing about this model is that you really do have a business of your own that you can build and market for. This is less the case with affiliate marketing.
How does dropshipping work?
In general, start dropshipping by finding a suitable dropshipping supplier.
For example, you can go to the local garden centre and ask if you can sell their assortment of flowerpots over the internet. If someone buys a flowerpot on your website you simply send the order to the garden center, they will deliver the product and they will send you the invoice, what remains you keep yourself.
Dropshipping is a great earning model because you can set it up quickly and you do nothing else than marketing a product. You can often even get the ad texts from your supplier!
In the most ideal situation you are looking for a supplier with a lot of products that are not yet active on the internet. If that supplier wants to do the delivery and customer service, all you have to do is make as many sales as possible, you can then divide the profits.
If you do it this way then you have the ideal dropshpping model set up. You can also arrange for the vendor to send you an invoice once a month so you only have to work with it once a month.
dropshipping Strange products works best!
Everything you can buy in a shop you can also sell in a web shop, I know entrepreneurs who sell glass doors, wooden stairs, saunas, garden furniture, anti-algae and many more “strange” products through the internet.
It’s often the less obvious products that sell well because there isn’t much competition on the internet yet.
You won’t get rich selling mp3 players because the internet is full of them, but when you sell saunas you can still differentiate yourself, with a good margin on such a product you can get a very pleasant income!
How exactly does dropshipping work?
Dropshipping is selling someone else’s physical products as an intermediary with your own company over the internet. So you have a website or web shop where you sell products that someone else has in stock.
You are looking for a dropshipping supplier of a certain product and with this supplier you agree that you will sell his/her products through your own website or webshop in exchange for a percentage of the profit.
When you get a customer you simply send the order to your supplier, who will deliver the product to the customer and send you the invoice for his part of the profit.
This way you have your own business but you don’t need to have any products in stock. You can also, for example, forward customer service to the supplier.
The ideal sole proprietorship
The advantage of this way of making money is that it is the ideal way to set up and run a business on your own without taking up too much time.
You set up a good website or webshop, you start up your marketing and for the rest you don’t have to do more than send orders (unless you automate that) and keep an eye on things.
When you sell a bit of a good product with a nice profit margin you can earn a great income per month without having to work too much time.
Dropshipping can also be seen as passive income, which means that when you have automated your marketing campaigns (such as Google Adwords) and sales process, in fact everything goes automatically.
However, it is always smart to check everything every day and keep testing your marketing and sales processes. The better everything runs, the more you earn of course.
Start dropshipping, the basics!
People who want to start a home business often wonder what dropshipping means.
This is one of the many business opportunities beginning entrepreneurs face. If you have just started selling products via the internet and have never been introduced to this concept before, it may not be quite clear what it is all about.
Don’t you have an answer to the question what dropshipping is?
This article contains everything you need to know to be able to decide if this business opportunity suits you.
Dropshipping: What's that?
Actually, dropshipping is a very simple concept. That also explains why it is so popular with people who want to set up their own business. The basic idea is to sell products via the internet, without having to buy and store stocks yourself.
As soon as you’ve found a dropshipping supplier who delivers the requested product, you can start offering it on sites like eBay, Amazon, Marktplaats or even on your own webshop.
When a customer buys a product, you get the selling price. You then pay the agreed (purchase) price to the supplier, who then sends the purchased items directly to the customer. You keep the difference between the selling price and the price of your dropship supplier and you don’t need expensive storage space.
How do you set up a dropshipping business?
Have you already warmed up to this concept after explaining what dropshipping can do for you? A lot of people choose for dropshipping because it simply doesn’t take much effort to set it up and start it up. How do you go about that?
First of all, you have to decide what you want to sell. Next, you need to find a dropshipping supplier who will deliver the requested product at a price you can earn. Once this has been arranged, you can bring the dropship product to the attention of potential customers. There are plenty of websites that can help you with this, even if you’ve never sold anything before.
What are the benefits of dropshipping?
The biggest advantage of course is that you don’t have to invest anything yourself. Actually, you buy the stuff with money from the customers themselves. The work is well distributed. You focus completely on getting more orders and building your business, while your dropshipping supplier takes care of the production, storage and logistics.
Is dropshipping something for you?
After the previous story it is clear that you have nothing to lose. The investment costs are negligible. It’s only when you sell a dropshipping product that things start rolling. What’s more, you already have the selling price in your hands.
There are plenty of sites on which you can advertise and most of the time it will cost you nothing or almost nothing. Dropshipping makes money and it only takes a little bit of your time.
Are you walking around with the thought of making some extra money from home? Maybe you have plans to set up an internet business, so you can escape the mundane work rhythm? Then dropshipping can be an answer to your wishes.
Hopefully the information above will have answered your questions and given you an insight into the fantastic possibilities this concept offers.
What products can you dropship?
Think carefully beforehand about which product you want to drop, because that is the first step you have to take.
It’s quite easy to find inspiration for possible dropshipping products by walking around in a shopping mall, department store or for example an industrial area. You’ll get so many products under your eyes that bells are bound to ring.
What you can also do is simply use the Google Keyword tool (free service from Google) to search for all the products that come to your mind and see how many times a month these products are searched for.
It’s often the time when you’re looking for something specific that you can’t find anywhere and you really have to spend time on the internet to find it that you suddenly realize you’ve got a good product for dropshipping.
Check the competition
When you’ve found a product you want to drop, go and see what competition you’re dealing with on the internet.
You can do this simply by Googling and looking at the websites on the top left but above all by looking at the sponsored ads on the right side of the results (Google Adwords).
When there are few Adwords ads it means that you have little competition, this can also mean that your product is not running well but you will have to test that!
From experience I know that it is often the ” unusual products ” that run best. So don’t sell mp3 players or something like that because the competition is fierce and the margins are low.
For example, if you focus on selling Glass doors, Saunas or Trampolines, the competition will be less and you will also have to deal with much higher profit margins per sale, which is an important feature of a good dropshipping product.
To make it even more clear: focus on high margin products.
It’s no use taking a few euros per sale and it becomes far too labour-intensive and messy to keep track of them all. On top of that you have to have a lot of visitors and a lot of sales to earn a decent income.
With products with high profit margins it’s a lot easier, you can then focus better and with every sale you really have a result that is useful to you.
Easy to trade
Also look for products that are easy to trade and for which you don’t have to take a course yourself to be able to tell something about them. You don’t have to choose a product that you have some common ground with as long as it’s easy to sell.
This way you keep it easy and clear for yourself and your customers. You won’t have to deal with complicated customer service.
Testing whether a product sells
Before you really go full steam ahead with dropping your product via for example a web shop, it can be smart to test if your product really sells.
Simply place it on a Marketplace or eBay and see if there are any orders coming in.
If you can sell it on Marktplaats then it might be worthwhile to pick it up bigger. If you don’t even lose it on a Marketplace, there’s no point in opening a large webshop.
Having fun in dropshipping stands or falls to me finding a good supplier. When your supplier is not good or does not work with you, dropshipping will quickly become time consuming and energy consuming.
Finding a good supplier
Finding a good dropshipping supplier can take some time. First try to think carefully about which product you want to go dropshipping and what kind of supplier you would like to have.
Then approach different suppliers so you have something to choose and compare.
Aspects of an ideal supplier
An ideal supplier is one that first of all has the product you want in stock unlimited and can handle a large workload. The last thing you want of course is that you have to sell no because your supplier can’t keep up with you.
A second aspect you should look at is if the supplier is willing to give you a decent percentage of the profit and if he wants to take care of the complete distribution so you only have to send orders.
To make it even more ideal, it’s also nice if your supplier takes care of customer service so you can be “free” from your business.
To get started quickly it is ideal if your supplier has product descriptions and specifications for you on paper so you can process them in your website or web shop.
In order to keep your administration/accounts clear, it is wise to agree with your supplier that he will send you once a month a total invoice of all processed orders so that you will only have work done once a month.
You will receive the payment from the customer and then forward the order to the supplier. The supplier then sends you an invoice once a month for his part of the revenues.
Also see if you can find a supplier that is easily accessible for both you and your customers.
If you ultimately want to grow, it is wise to choose a supplier who also trades other products so that you can include them in your offer.
How to contact a supplier
Well if you’ve come up with a product that you want to drop and you’ve found a possible supplier, then of course you have to approach that supplier.
You can choose to do this by e-mail or by phone. Personally I would opt for telephone contact or a short mail in which you ask him/her if he/she is interested in a possible cooperation. In such an e-mail you can of course ask if you can contact the supplier by phone.
Try to focus your communication on “working together” and “win-win situation”. Don’t try to explain what dropshipping is because then a supplier will quickly drop out. Keep it short and concise.
Communication with your supplier
Try to build a good relationship with your supplier so that you know what you have in common. I also advise you to visit the supplier for a personal meeting before you start your dropshipping activities.
Don’t try to explain too much to your supplier how you do your marketing on the internet because then you run the risk that your supplier will try this himself. Make sure you continue to complement each other.
Don’t forget to negotiate the distribution of profits!
When the supplier makes you a proposal for a profit distribution, so how much you will receive per sale, it’s best to negotiate, that’s a very normal thing and your supplier will certainly not be offended.
Try to make it clear that you can ensure that his sales will increase enormously via the internet because you have a lot of expertise there. The supplier must be convinced that it would be very stupid for him not to work with you.
Also emphasize that the supplier only has to pay you with a percentage of the money you earn for him and what he wouldn’t otherwise have had anyway.
The best thing is if you each get 50% of the profit per sale, then it is fairly distributed.
What do you need to document
This is the only less fun part of dropshipping, you have to put your agreements with a supplier down on paper so you don’t get unpleasant surprises.
You don’t have to make a thick legal book of this but just put some essential things on paper with a signature underneath.
For example, record your price agreements but also who is responsible for the (defective) products that come back from the people who want their money back.
If you offer a guarantee on the purchase it is of course important that you agree with the supplier so that you do not have to worry about it.
For example, you can stipulate that you have the exclusive right to sell via the internet, but that is more of a bonus that your supplier will not agree to very quickly.
Dropshipping with a Webshop?
Selling from a webshop is the most popular form of dropshipping and probably the most professional form as well.
If you are going to start a webshop to sell dropshipping products from there I recommend you to start easily.
For example, you can choose to go to Shopify where you can start for free,14 days trial, and then (paid) upgrade to more features. Shopify is made especially for dropshipping!
If you really want to do it professionally I recommend using WordPress, this is pretty technical so you will need more knowledge to set it up. There are several Plugins that make it possible to turn a wordpress website into a dropshipping website.
There are also several apps that can take a lot of work out of your hands. For example Oberlo.
With Oberlo, you can search a marketplace of products to import directly into your Shopify store. When you receive an order, you can fulfill it through your dropshipping supplier via Oberlo and they will ship the product to your customers for you. There’s no need to worry about packaging or shipping it yourself.
As soon as your webshop is online you can fill it with the product descriptions of the products you are going to drop off.
You can make these yourself but you can also get them from your supplier (who often already has them).
When you are going to write them yourself, use the so called AIDA formula. This formula stands for:
Attention (grab the attention)
Interest (arouse interest)
Desire (create a need)
Action (pay button)
By working from top to bottom in your advertising texts in these 4 steps, you can be sure that you are always writing good selling texts. Also try to split your texts so that you will achieve more results little by little.
The texts with your products in your webshop are often underestimated but are oh so important. By correctly mentioning the advantages of your product and working with catchy texts you might just be able to convince a visitor to buy instead of looking further.
In a web shop, the ordering and payment process is one of the most difficult factors as most web shops lose a large part of their paying customers.
You often see webshops with incredibly long ordering processes where you first have to go through 8 steps before you can pay. With each step you increase the chance that the customer drops out and doesn’t buy…
Always try to ensure that the customer first pays for his product and only then fills in all his details before shipment. If they have paid then they really do fill in, if they still have to pay, the temptation is often great to go on first.
Try to keep your payment process as short and powerful as possible. Don’t ask for duplicate data and don’t ask for data you don’t do anything with. Focus on results.
It is important that your webshop is as user-friendly as possible, because that’s where you make the difference between an average webshop and an effective one that achieves good results.
The best thing you can do is to have your web shop tested by someone who is not good with computers/internet. Just watch how this person reacts to your shop and try not to give any clues.
If this person doesn’t understand something, chances are that other visitors of your shop don’t understand it either.
Make sure everything in your shop is clear and orderly, your visitors should understand how everything works and what the intention is without having to read the texts. Try to take this into account in your design.
Finally, I would like to briefly talk about search engine optimization.
Search engine optimization
Also make sure your webshop is search engine friendly. In the end it’s nice if you don’t have to advertise in Google Adwords because your visitors come from Google’s organic search results.
Make sure you have the right title tag, meta tags, search engine friendly urls, alt tags and correct filenames for images, title attributes for links and so on.
Dropshipping with a Salespage?
A simple way of dropshipping is to simply place a Sales page on the internet on which your product is for sale.
You don’t have to set up a dropshipping webshop but you can simply place a promotional page online with a pay button on it.
Ideal for quick start up
The big advantage of this method is that you can often have such a page online within a few hours and that you can start selling your product immediately.
If the sales are going very well you can always switch to a more professional webshop.
1 product per salespage
A sales page sells basically only 1 product, you really have to see it as 1 long advertisement with all the advantages of your product and a payment button to purchase the product.
When you place different products on 1 salespage the visitor gets confused and you are guaranteed to miss out on sales.
Pay via iDeal or PayPal
Make sure anyway that visitors can pay with online payment methods such as PayPal, for example, you can use the PayPal integration so you do not have to have technical knowledge.
With these payment systems you give the majority of your visitors a payment option. You can also think of direct debit and bank transfer if you want.
For international sales it is advisable to also integrate credit cards (is also included with PayPal).
Writing good texts
With a sales page it really comes down to writing good selling texts, this is also called Copywriting. Use the AIDA formula as a basis and focus on effectiveness instead of the design or the amount of text.
Affiliate Marketing & Dropshipping
Affiliate marketing is a marketing method on the internet where you are promoted by other marketers and you pay them on a commission basis.
No cure, no pay
Affiliate marketing works on a no cure, no pay basis. This means that you only have to pay an affiliate when they make a sale for you.
An affiliate sends a visitor to your website or webshop and if this visitor buys, you pay the affiliate a percentage of the sales.
The nice thing about this is that you don’t have to invest in marketing and getting visitors. You simply pay an affiliate of the money that this affiliate has earned for you.
Affiliate marketing can really get you off to a flying start as you can reach large affiliates with a large reach, when they promote you to their supporters you will get a lot of results instantly.
With affiliate marketing you can literally sell your product within a day, that’s what makes doing business so much fun!
How do you get an affiliate system?
For example, you can use https://affiliatewp.com/ as an affiliate system on your website, so you don’t need any technical knowledge.
You can also choose to use other affiliate marketing software such as Traddoubler or M4N.
How do you get affiliates?
Once you have an affiliate system installed on your website, you can start recruiting affiliates. You can do this simply via Google, search for websites with the same subject matter as your product and ask them to promote it in exchange for a commission.
Putting affiliates to work for you makes you a truly passive middleman with your dropshipping business. An affiliate sends customers to your website and you forward them to the supplier. You pay the affiliate a share of your profits and you keep the rets yourself.
E-mail Marketing & Dropshipping
By applying e-mail marketing you get more out of the visitors on your website.
You have to assume that the majority of the visitors on your website or web shop will leave without buying anything from you.
Of course this is a shame because getting visitors to your website is quite difficult and as soon as you have them you want to get the most out of them.
So make sure your visitors can sign up for your newsletter for free so you can build up an email list.
Build a backbone
By building up an email list you literally build a backbone of your business. You can access this list at any time for commercial actions.
However, you have to build a bond with the people on your list in order to be able to expect results. Only commercial e-mails will not really reach your readers.
Try to send personal e-mails with a lot of valuable information, to the members of your newsletter but also to your customers, to them you can sell new products in the future.
Offer new products
The nice thing about having a mailing list is that you can market your new products directly to someone, that way you keep the entrepreneurship and inventing new projects fun for yourself.
As soon as you include a new product in your webshop, you can send an email about it to your mailing list, for example with a special introductory price.
If you work with a website and a sales page, you can set up a new sales page for each new product and send a message to your mailing list.
A mailing list is also ideal for product launches. You can announce that you are launching a new product on a certain date and place a countdown on your website.
By sending this to your mailing list you will immediately get a large group of interested people to your website at the time of your launch, this can cause big peaks in your turnover.
Google Adwords & Dropshipping
Google Adwords is a service from Google that allows you to advertise in Google’s search results. Your ad will be displayed on the right side of the Sponsored links.
With Google Adwords you can quickly get large numbers of visitors to your website or webshop. In this way you can literally earn money with dropshipping within a day.
Specific advertising per product
Nowadays Google Adwords is all about quality and relevance, the time when you could advertise on all kinds of keywords randomly.
Nowadays you have to take your quality score into account and it is partly based on the relevance of your landing page (the page that a visitor comes to after he/she has clicked on your ad…
It is therefore important that you advertise specifically when you have a webshop with multiple products. Try to place a separate Adwords ad for each article in your webshop in which the name of your product appears.
If you only sell one product, you can of course try to make the sales page on which you sell this product relevant to the words you advertise on.
Search & Content Network
At Google you can advertise in 2 ways.
The first is the search network, when you use it your ad will be displayed next to the search results in Google itself.
The second is the content network, where your ad is not displayed in Google but as Google Adsense ads on other websites.
Anyway, make a separate campaign for each variant so you can keep the results well apart.
Google Adwords is a study in itself, so it’s good to study this before you start. Try to follow Google’s guidelines well, then there is not so much going on and you can quickly achieve results.
How do you set up a dropshipping business?
In this article I will share with you seven important steps for setting up a good dropshipping business. If you’re still new to dropshipping, it’s a good idea to read about it before you start, because it will save you a lot of time and maybe a lot of money!
Supplies dropshipping business
- Webshop software
- E-mail management provider
- Domain name
- Dropshipping supplier
- Marketing budget
1. Find an unsaturated market
Even if you deliver the best product in the world, if it doesn’t sell you might as well forget about it. Don’t pin yourself on a particular item until you’ve done thorough research using keywords. After all, most sales come in via the internet.
Whether there is interest in a product can be measured by the degree of competition. Just type in the name of your article on a search engine like Google. Do you see advertisements on the right side of the results page? Then that is a good indication that your product is in demand. Also take a look at websites that compare products or companies that offer the article.
2. Find a reliable dropship supplier
The next step is to find a dropship supplier who can deliver the products you want to sell. Many companies offer drop shipping facilities. Contact potential candidates and investigate profit margins, payment options, return policy, shipping rules, and so on.
3. Create and register a domain name
Once you’ve found a market and a dropshipping provider, it’s time to register a domain name. Of course you want to be found easily on the internet. Therefore use a name that is related to the products you sell.
For example, if you sell fitness equipment, you can opt for fitnessequipment.com, provided that the domain name is still available. A domain name like bigbikestore.com does not really help in this regard.
4. Find a webshop provider
Of course you can outsource the design of your webshop. However, it saves time and money if you create a webshop through a webshop provider. Some providers charge a monthly fee for this. However, you are completely in control and you don’t have to wait until your web designer has time for you. This is the cheapest and fastest way to start a webshop.
5. Put your products online
As soon as you have created a webshop, you can start uploading the products. It’s a good idea to launch your webshop before all your products are online. Why is that? Actually, the answer is simple.
First of all, your webshop needs to be up and running as soon as possible in order to be able to sell. In addition, it allows you to adjust things based on the comments you get from the market. Of course, if you want, you can hire someone for this job.
6. Start your first marketing campaign
From the moment of the launch you want to generate as many visitors as possible to your webshop. For example, you can think of CPC (cost per click): a model where visitors can click on advertisements on search engines, ad networks and social media.
Advertising for your dropshipping business on comparison sites, article marketing, comments on blogs and forums – including backlinks to your website – also work well. Once you’ve found the method that generates the most sales, you can slow down with the other techniques and focus on the winner.
7. Use e-mail marketing
The money is in the list is a well-known expression in the Internet country. It means that your mailing list is worth money and so is a dropshipping company. So make sure that visitors of your webshop can leave their name and email address.
This allows you to send emails to your subscribers with offers, announcements for new dropship products, tips, and so on. You’ll notice that your sales will go up right after you’ve sent such an email!
How do I find a reliable dropshipping supplier?
Finding a good dropshipping supplier is a big challenge for both starting and advanced entrepreneurs. Not only do you want a supplier that delivers the requested products at the right price, but also provides a reliable service to you and your customers.
But how do you find the ideal dropshipping supplier? There are two ways to do this, each with their own advantages and disadvantages.
Use approved dropshipping directories
Nowadays, there are established, reliable dropshipping sources that list a large number of certified dropship suppliers at a reasonable price. The keyword here is ‘certified’.
These sites don’t stay in business long when they mention unreliable and dubious suppliers, so they check and classify the suppliers that are in their list accurately.
Sites like SaleHoo, WorldwideBrands and Doba are large, international directories that have been around for some time. Some sites put you in contact with suitable suppliers, while Doba, for example, acts as an intermediary and arranges transactions between both parties.
These types of sites provide access to thousands of screened and authenticated dropship providers. If you are new to the dropshipping business, this is the best choice, because it eliminates risks as much as possible.
However, the suppliers on the list are not always the cheapest option. In combination with the running costs of the directories, this can mean that you lose a part of your profit.
Search for dropshipping suppliers yourself
If you decide to look for a suitable supplier yourself, you have to be very careful to avoid running into a dubious company. It’s a great way to find a lesser known dropshipping supplier that offers a better price than the establishment.
However, that does mean that you have to do a few things to make sure that it is a reliable company.
Check if it is an officially registered company
Each country has a public body in which companies have to be registered. Depending on the country where the supplier is based, you can request the official company information from the relevant authority.
Find reviews about your dropshipping supplier
Even if it is an officially registered company, this does not necessarily mean that it is a reliable supplier. So if you are planning to use a particular dropshipping supplier, then you would do well to search the internet for reviews and other forms of feedback about the dropshipping company.
Especially (international) dropshipping forums can help you with this. In most cases, the feedback from other people will give you a good idea whether it is wise to join forces with your chosen company.
Test the dropshipping supplier
If your dropshipping supplier has come through the previous checks, it is wise to perform a test before releasing it to your customers. Place a test order to see how the service works and if you get exactly what you ordered.
You can always sell the product you’ve purchased on eBay. If all goes well, you can rest assured you’re dealing with a trusted supplier.
Finding a dropshipping company yourself might be something you’ll want to postpone until you’re more familiar with the dropshipping business. Until then, the established dropshipping directories offer more than enough choice to get started with your online dropshipping business!
10 reasons to start dropshipping
Because there are so many good reasons to start an online dropshipping business, dropshipping is becoming more popular every day.
As long as you don’t do weird things and make the right decisions with regard to your product selection and pricing, you’re almost assured of success. And that usually within a very short time, without you having to pay any start-up costs!
Below are the ten most important reasons to start with dropshipping. After going through this list, there is almost no excuse not to start your own dropshipping business!
1. Low start-up costs
Compared to setting up a normal (webshop) business, the costs of starting a dropshipping business are very low. You don’t need more than your own webshop, hosting and a domain name.
If you decide to operate without a webshop and only want to use advertising sites such as eBay, you can even make your first sale within an hour of setting up.
2. Wide selection in products
If you sign up with a dropshipping company, with a limited budget you have access to a much larger selection of products than if you had had to buy everything yourself from a wholesaler. After all, you are allowed to sell all the products your dropshipper offers.
This way you can put together an extensive assortment, without having to make any investments.
3. No special skills required
Almost anyone can set up a dropshipping business. You don’t need a specific education or course to get started, so you can start right away. Some big dropshipping companies even offer small marketing courses (home study) to get you started, but if you search on Google, you will also find enough free information and course material about setting up a successful dropshipping business.
4. No inventory needed
Because you don’t need inventory, dropshipping is one of the easiest ways to sell products over the internet. All you need is a computer and access to the internet. Together they form the magical mix to run your dropshipping business.
So if you want, you might as well take your laptop to a coffee shop and still make money!
5. Do simple research
In most cases you don’t even have to do any research on your product, because all the product information is usually listed on your dropshipper’s website. In addition, if you want to learn more about your product, you can easily do research online or order a test product.
6. Earn money according to your own commitment
With a normal job you get paid the same as your colleagues, even if you do your best and your colleague does little more than playing games of solitaire all day long. With dropshipping, however, your earnings are equal to the amount of time and effort you put into your dropshipping business.
The more time you put in, the more it pays off. And the more experience you build up, the more money you earn each hour worked!
7. Choose your own products
When you start dropshipping, you can decide which products you want to offer in your webshop. Usually you choose products with which you are familiar and with which you have affinity. It can be very satisfying if you can communicate with people who have the same interests as you while making money online.
8. Working from home
Do you like to hang out on the couch at home? Or do you have children? Then dropshipping is perfect for you. With a dropshipping business, there’s no reason to go out anymore. You can just run your business from your own computer. Even if you are forced to take care of the children or the household at home, you can still be able to earn money!
9. Little customer service
Are you hoping to quit your office job as soon as possible, so you’ll never have to deal with annoying clients again? Then starting up a dropshipping company is ideal. If you combine dropshipping with your own webshop, the purchase and payment process is completely automatic! Occasionally, you will be able to ask a question about your products, but this only happens relatively little.
10. Buy your own products!
What not everyone immediately thinks of when starting a dropshipping business is that you can reap the benefits yourself. Thanks to your account with your dropshipping supplier, you also have access to the products you sell, at rock-bottom prices!
Especially if you sell goods with which you have an affinity, this is a big advantage of dropshipping. If you weren’t a seller of these products yourself, it would be almost impossible to find them elsewhere at these low prices.
Why start a dropshipping business?
These are just ten of the many reasons to start a dropshipping business. You can earn as much money as you want and work when it suits you. Are you already convinced? Set up your own dropshipping business and discover what other benefits dropshipping has to offer!
Working with a real dropshipping supplier
This seems like a strange title for an article about dropshipping, but unfortunately you’ll find a lot of dubious companies in this industry. One warned person counts for two and fortunately there are plenty of websites that offer an overview of legitimate dropshipping suppliers.
A good dropshipping company is a pleasure to work with. There are many advantages of working with a “real” dropshipping supplier, but the most important is that you can confidently “let go” of such a company on your customers.
The leap into the deep
Of course it’s exciting if you, as a beginning dropshipping entrepreneur, take the plunge into the deep end. Take a look at the many dropshipping forums. Then you’ll soon realise that other dropshippers don’t release much information or react hostile to newcomers. The competition is big and no one is waiting for a new competitor.
If you work with a good dropshipping vendor, there is no need to search forums for product tips or price information. That information is available on the site of the supplier.
Dropshipping suppliers benefit from keeping as many dropshippers going as possible. After all, that brings money in the drawer. They often help dropshippers with marketing tips to become successful. Your success is their success. A good dropship company makes sure you have all the help and information you need.
It can feel very uncomfortable to go into hiding in a market with so much competition. However, a good dropshipping supplier will not let you flounder. He strives to make every customer successful by providing good research tools and resources.
Even small fish will find something to eat. No matter how small your business is in the beginning, a real dropshipping supplier will help you find your product niche so you can make a nice profit.
Become a big player!
The most important factor in dropshipping is switching off intermediaries. Real dropshipping suppliers are more interested in fellow businessmen than in middlemen for the sale of their products.
Of course, a good dropshipping company will also ask for your VAT number before he goes into business with you, but that doesn’t have to be a problem. Registration in the trade register and applying for a VAT number is one of the steps to grow into a successful dropshipping company.
A real dropshipping supplier will treat you like the big fish you could ever become, and not like the little fish you are now…
Dropshipping on eBay: Investigate the competition
Dropshipping has recently become a serious sales and order handling strategy. The main key words associated with the concept of dropshipping are profit and convenience.
Intermediaries are eliminated and the supplier or factory delivers directly to the customer. This concept has added a whole new dimension to the capabilities of small business owners and sellers on eBay.
However, there is a catch and that catch is called competition. A seller only benefits from dropshipping if he can make a profit. There is also cut-throat competition on eBay that can ruin a seller’s life.
The competition on eBay sometimes resembles the price war of some supermarket chains. What’s the best way to investigate the competition so that you can get the maximum benefit from your drop-shipping business on eBay.
The product you sell can make or break your business. You have to have a product that someone wants or needs. Information about products that people use or just like can be found on eBay. You can use a tool like eBay Pulse. As a seller, you need to focus specifically on markets that are very popular.
If you search well on the internet, you will find a lot of suppliers that focus on dropshipping products. Please note, however, that prices, policies and especially the quality of those suppliers may vary.
Simply type the term “drop shipping eBay” into a search engine and your search is started. The trick is to find a dropship supplier that supplies products for a niche – a segment of the market – with a lot of demand, but little competition.
As mentioned, you can find a wealth of information on eBay itself, so research is simply a matter of time and effort. Using customer information, you can find out how many sellers are focusing on a particular product.
Choose a product and a dropship company in a market that’s not yet saturated, otherwise there’s little to earn. The more sellers sell a particular item on eBay, the less profit there is for everyone to make.
The less competition, the more profit you can make (so do a competition analysis first). A Powerseller is a trader on eBay that achieves a lot of sales and generates 98% customer feedback. A Powerseller can be recognized by the PowerSeller icon next to the user ID on the eBay interface.
Participants in this program have special privileges, such as priority eBay customer service, promotional offers and merchandise, participation in advanced sales courses, additional research opportunities and many more benefits. So don’t compete with a Powerseller when you’re just around the corner, because you’re guaranteed to go under.
Dropshipping vs. wholesale
The difference between a wholesale business and the dropshipping concept is simple. With dropshipping, the manufacturer or supplier delivers the product directly to the customer. A wholesaler, on the other hand, delivers the product to the seller, so you have to arrange shipping to the customer.
The advantages of dropshipping are clear. Nowadays many wholesalers have their own dropshipping department. For eBay sellers, this is a big advantage, especially because there are a lot of scammers in the world of dropshipping.
The world of online retail
Thanks to the Internet, there is currently a wealth of supply and demand, opening up unprecedented opportunities for entrepreneurs. For a beginner on eBay who wants to start a new Internet business, it is vital to recognize the opportunities of dropshipping, wholesale and niche markets.
5 mistakes in setting up a dropshipping business
Most dropshipping tips focus on how to set up your own dropshipping business, but often the pitfalls are overlooked. Below you will discover how NOT to do it using the 5 most common dropshipping mistakes:
1. Have someone else tell you which product to sell
Believe it or not, many beginning entrepreneurs ask others what they should sell on their own website. If you have no idea which items you want to drop off, then you shouldn’t start setting up an e-commerce business.
For example, you can be persuaded to sell gigantic flat screen TVs by someone who loves it, but you don’t do yourself any favors if you actually prefer to do something in the field of fashion. You have to understand and feel for the products you offer, because you are the one who has to recommend the items on your webshop.
2. Designing a website before you have a dropshipping product or vendor
You wouldn’t think so, but this mistake is often made. Don’t spend money or time designing a webshop before you have found a dropship supplier and reached an agreement with him!
This mistake doesn’t have to be such a disaster if you set up your own webshop through a webshop provider. It’s only a waste of your time if you can’t find a supplier for the product you intended the website for. However, it happens often enough that people have a webshop designed by an expensive designer. That’s a lot of money through the drain when you have to blow it off…
3. Registering and hosting a domain before you have found a dropshipping provider
This happens so often that it’s almost embarrassing to mention. As long as you haven’t found and contracted a supplier yet, you shouldn’t spend any money on buying a domain name and concluding a hosting contract. There’s plenty of time for that when the delivery side is complete.
What if, for example, you have registered the domain name artdecolampen.nl and there is no manufacturer who can deliver that product? Depending on the number of years for which you have registered the domain name and the nature of the hosting contract, it can save a lot of money in the long run.
4. Do not register your company in the Trade Register
The worst mistake you can make as an entrepreneur is not registering your business. You can miss out on a lot of tax benefits and we’re not even talking about the lack of legal protection. The local Chamber of Commerce can help you with anything related to setting up your own dropshipping business.
5. Start selling before everything is arranged with your dropship supplier
This often happens when you can download photos and product descriptions from the site of the dropship supplier. You then have everything you need to start selling, don’t you? Wrong! Often people already start selling during the negotiation phase. Make no mistake though. That process can take a lot of time.
There are a lot of reasons why this is a real no go.
- For example, what happens if you score sales while the supplier hasn’t even given permission to sell his products yet?
- What if you are going to drop the items on eBay while the dropshipping supplier may not want his products to go out on eBay at all? How do you know if you haven’t agreed on that?
- What if you’ve put all the products neatly online and some of the products turn out not to be in stock? You won’t hear about that until the negotiations have been completed. In short, enough reasons to wait with the sale!
Other dropshipping pitfalls
Apart from these five blunders, there are dozens of other pitfalls. However, the above errors are the most common and can have major consequences. If you can avoid these mistakes, then you are well on your way to setting up your dropshipping business. Moreover, you’ll have a bigger chance to become profitable as soon as possible.
Build a relationship with your dropshipping supplier
Once you’ve built up a certain level of trust with your dropshipping supplier, it might be time to go a step further and take your relationship with your dropshipper to the next level.
Don’t think too lightly about this, because improving your relationship with your dropshipping supplier can result in better pricing, special bonuses and other perks that a “regular” dropshipper won’t get done quickly.
If you’re just getting started with dropshipping, you’re probably just a number to your dropshipping supplier. However, the longer you stay with the same dropshipper, the more chances there are of proving yourself to your dropshipper. Find out below what you can do to attract the attention of your dropshipping supplier in order to get those very wanted privileges!
This may be obvious, but not everyone can hold back when a problem occurs somewhere. Do not solve your problem with the dropshipper by responding to customer service, but remain very polite and friendly. If you remain polite even in the most annoying situations, you will soon be appreciated for your professional behavior.
Do not expect to be immediately rewarded for your polite attitude. In the long run, however, you will be widely respected and loved by both management and customer service. As your contact with the dropshipping company improves, you will notice that your problems will be solved faster and faster!
Help your fellow dropshippers
Does your dropshipping supplier’s website have a forum? Then make sure you build the reputation of an active forum member and support your fellow dropshippers as much as possible. If you are very competitive you might raise an eyebrow now, but in the end your efforts on the forum will pay off.
By helping your fellow dropshippers as much as possible, they are much more likely to help you if you have a problem. In addition, not only the other forum members see how helpful you are, but also your own dropshipping supplier. Because you help his customers on their way, he earns more money and he will appreciate your efforts.
If you extend this further and your dropshipping supplier becomes more successful because he sells more, he will be more inclined to expand his product range and maybe offer the products at a better price to you and the other dropshippers.
Your dropship supplier will remember which forum members were most helpful in giving tips to the other dropshippers and therefore also who is indirectly responsible for (part of) the growth of his company. If this is the case, the relationship between your dropshipping supplier and you will develop in an absolutely positive way.
Stand out in your dropshipping qualities
Above all, make use of all the dropshipping tips that your dropshipping supplier gives you and that you can find for free on the internet. Develop yourself into one of the best dropshippers in your industry and your efforts will certainly be rewarded! Not only will you become much more successful than your fellow dropshippers, but your success will not go unnoticed by your own dropshipping supplier.
As your dropshipping supplier gains more confidence in your sales skills, he can reward you with extra discounts on the delivered products or access to a wider product range. Thanks to these special prices and less calibrated products, you’re already giving your competitors the edge, because your dropshipping business now has even more potential.
Establish close partnerships
If you’re just starting out with dropshipping, it’s quite normal to focus on setting up your dropshipping business and making as much money as possible. On the other hand, many large companies have only really grown thanks to professional partnerships and the development of close business relationships.
These large companies are the result of several business people who have joined forces (for example a dropshipper in gardening tools who decides to work with a dropshipper in do-it-yourself products). By entering into close business relationships with both your dropshipping supplier and your fellow dropshippers, you ensure yourself of a long and very profitable dropshipping career.
Dropshipping from China? 9 tips!
More and more entrepreneurs are discovering the power of dropshipping. For those who are not yet familiar with it: dropshipping is selling products without having them in stock yourself.
As a seller, you receive the selling price for the product and then you order the same product from your supplier at the purchase price. Your supplier then sends the product directly to your customer.
In most cases, as a retailer, you will not even come into contact with the sold products, because your dropshipping supplier will send the item directly to your customer. In many cases, these products come from China, so it is important to contact a Chinese dropshipping supplier.
Because this is not entirely without risks, there are nine dropshipping tips listed below that you should pay attention to when looking for a Chinese dropshipping supplier (also applicable to Dutch dropshippers!).
1. Check reviews about your dropshipper
Once you have a Chinese dropshipper in mind, it is important to find out in advance whether you can trust this supplier. Google the name of the dropshipping company, check for reviews and search (international) dropshipping forums for experiences with this company.
Try to find out how long the dropshipping company has existed and if there are (many) customers about it on the internet. And if so, have these complaints been resolved?
Note: if you can’t find any external information about the company at all, this is usually not a good sign! If something seems too good to be true, it usually is. Doing business with Chinese dropshippers is risky, so take advantage of the experiences others have had before you and don’t fall into the same pitfalls as your predecessors.
2. No products in own possession
If you do dropshipping, you don’t have any products of your own in stock. It is up to you whether or not you make this known to your customers. If you are transparent to your customer and inform him in advance about the shipping process, you are less likely to be faced with nasty surprises. Think of angry customers who have to wait too long for their product, unexpected customs duties, etc.
On the other hand, it is less professional if you make it clear that you are only the intermediary between your customer and the supplier. Decide for yourself which option suits your product and market best.
3. Delivery time?
One of the most important requirements for a dropshipper is a short delivery time. If you do dropshipping from China, you will always have to deal with a longer delivery time than Dutch dropshippers, but there are limits to what your customer finds an acceptable delivery time.
So ask your dropshipper beforehand what the delivery time of his products is (and of course what shipping costs this entails). Do not blindly trust the word of your supplier, but test it yourself by ordering a product from him under a different name. Also inform your customers well about the expected delivery time, so you won’t get any complaints afterwards.
4. Track & Trace?
Not only is it important that your dropshipping supplier can ship his products quickly, but his shipping methods also need to be traceable. Therefore, always make sure your Chinese dropshipper works with a Track & Trace code. With the help of this unique number you and your customer can track the order.
If the delivery of a product is delayed or does not arrive, you can use the Track & Trace code to find out exactly what happened and if the product has been shipped at all. If your customer hasn’t received the product, then in that case you can fall back on the Track & Trace number. Without this number it becomes guesswork what happened to your shipment and you are never sure if your supplier and/or customer are telling the truth.
5. Do not accept a minimum amount
If you sign up with a dropshipping company from China (or any other country) there should not be a mandatory minimum of your orders. Dropshipping is not a wholesale business, so you don’t have to meet the same requirements.
It is obvious that you will get an (extra) discount if you order larger quantities, but even if you only want to buy one item at a time, this shouldn’t be a problem.
6. Do not pay entry fees
Be wary of dropshippers who try to charge an entry fee before accessing their dropship range. A legitimate dropshipper would never charge a fee to open your account, unless they also arrange a related website or other services for you.
7. Keep communicating
If there is a problem with the shipment of a product (e.g. delay, damage, etc.), contact your own customer immediately and inform him. Good communication is not only important between you and dropshipper, but also between you and your customer. Give your client the feeling that you are always available and inform him in time if problems arise.
An important point that is often forgotten in dropshipping is how to solve the returns. Can you return the product to your supplier in China? Or do you collect the returns as associated losses? Consult with your dropshipper in advance who is responsible for this, so there will be no misunderstandings later on!
9. Order samples
Have you found a dropshipping company that meets all the above requirements? Congratulations! Before you can start working with your new dropship partner, all you have to do is order some test products. This way you can check if your dropship supplier delivers what he has promised you.
Use a different name than your own for this and preferably different addresses as well. Check the delivery time, the packaging, the quality of the product and the communication with your supplier about this (is paying easy? Do you automatically receive a Track & Trace number from him?).
If all this has gone well and you are satisfied with the quality delivered, then all you have to do is set up your own dropshipping business!
Dropshipping Vs. Wholesale
If you are planning to start a webshop, it is important to delve into the difference between a webshop based on dropshipping and a webshop that works with its own stock (wholesale).
Both dropshipping based and wholesale webshops are interesting ways to make money online, but they are completely different ways to run your web shop. Both methods have their own specific advantages and disadvantages, which are discussed below.
If you run a webshop based on dropshipping, you are in fact selling products that you don’t have in stock yourself. With the permission of your dropshipping company, you sell their products in your own webshop or through an online sales channel, such as Marktplaats or eBay, without actually buying products from them.
As soon as someone places an order in your webshop or responds to your product ad, you send the order to your dropshipping company. This company takes the order from you and sends the ordered product to your customer.
Earning money with dropshipping is an interesting earning model, because you sell the products for the official retail price, while you place the orders yourself at wholesale prices. So you are a kind of middleman between the dropshipping company and your customer. You enter into a relationship with your dropshipper and your customer with you, over and over again. Because the difference between the selling price and the purchase price is for you, you can earn quite some money this way.
The biggest advantage of dropshipping is that you hardly run any risk. You only place an order when you’ve received an order yourself, so you don’t have to store large stocks of goods. This way, you don’t run the risk of being stuck with large quantities of unsold products.
Running a webshop based on wholesale orders means that you have the products you sell in your webshop directly in stock. The products are your property.
In this case you are looking for a company or factory that wants to sell goods to you at wholesale prices. Then you place a large order and take care of these products. Depending on the size and quantity of the products you sell, you can rent a warehouse where you can store your products until they are sold.
As with dropshipping, you place your own advertisements for the products or open a webshop for them, but if you work with your own stock, you also pack the products yourself and send them to your customers.
The concept behind making money with dropshipping and working with your own stock is identical. The wholesale orders are placed at purchase prices and the products are sold at the selling price. In this way you will make almost the same profit as with dropshipping.
The biggest advantage of working with a wholesale company, however, is, that you’ll usually be able to expect a lower purchase price than when you’d be able to drophipping products at the same wholesale company. After all, the more you buy something from something, the lower the price per unit will become.
The disadvantage of working with your own stock compared to dropshipping is obvious: you’re running a bigger risk. You don’t have the guarantee that the products you buy will be sold as well.
Conclusion dropshipping vs. wholesale
The big difference between dropshipping and wholesale comes down to the way you buy your products. Because with dropshipping you don’t have to store the products in advance, this is a relatively safe way of trading. On the other hand, the margins are usually bigger if you work with your own stock, because you’ll buy more products at the same time and thus get a better price per piece.
Which way works best for you, is entirely up to you and your business. Do you have starting capital? Do you dare to invest? Are you sure you want to be in this business for a long time? Do you have space to store goods? Ask yourself these questions and discover which way of making money appeals to you more.