Dropshipping is currently on everyone’s lips and every online marketer feels that this is a business model. This is not without reason because e-commerce is booming more than ever and more and more people are buying online products.
Dropshipping is a kind of e-commerce business in which products are sent directly from the manufacturer to the end customer. Also here one is quasi again only mediator. You don’t need to store inventory or take care of handling. As a Dropshipper one only operates the market place, i.e. the online shop.
The advantage is again that one does not have to manufacture own products but only operates a virtual store. In this store you upload products from (mostly) Chinese manufacturers and advertise them.
Here, too, the core skill lies in advertising the store and the products. One then takes over the billing and as soon as an order arrives, one forwards it directly to the manufacturer. The manufacturer pays and sends the product directly to the customer. What remains of the margin is kept.
The most popular model is Shopify (platform with which you can build your own shop) Dropshipping with Aliexpress (Chinese platform with thousands of manufacturers of products).
Meanwhile there are also some European and American POD (Print On Demand) suppliers which print products on demand at reasonable prices and send them directly to the customer. Thus there are some possibilities how one can operate Dropshipping.
Amount Of Time
Dropshipping is definitely a full time job in the beginning. Initially it is necessary to build a store, find products and test them with appropriate advertising campaigns.
The time required is correspondingly high, especially at the beginning. Customers also increase the effort in terms of customer support and order fulfillment.
Only later, when you really have a lot of experience with Dropshipping and the stores already generate a very stable cash flow, you can start to outsource certain activities using VAs.
However, it is still necessary to keep the overhead over the stores and therefore one can probably never speak of an automated or passivebusiness.
Basically anyone can start with Dropshipping but it is necessary to learn some skills in this area. This starts in the first place with building a fully functional webshop.
Although Shopify is a very simple solution based on Visual Builder, you need some basic knowledge in HTML & CSS.
In addition, you also need to know how to place advertisements with Facebook, Google, Instagram & Co. to generate traffic. Without traffic there is no sales. However, it is possible to learn these skills within a few days and weeks.
Start Up Capital
Ideally a starting capital of 500-1000 USD should be available for Dropshipping. Basically, the costs for setting up an online shop with Shopify and uploading the products are kept within limits.
However, these costs are limited because Shopify has a free trial version(click here) and then costs starting at 29€ per month.
Income / Profit
However, if you are willing to deal with the topic of e-commerce and online marketing, you have the potential to a very high income.
Because through increased purchase quantities also more favorable prices with the manufacturers can be demanded and since one has no logistic problems one can scale a Dropshipping Business theoretically very highly.
There is also the possibility to have the products labelled and to create your own brand. This would then be the first step towards private labeling. In the end, a brand / label is best sol