What is Dropshipping? Definition, Advantages, Success Tips, etc

What is Dropshipping? Definition, Advantages, Success Tips, etc
What is Dropshipping? Definition, Advantages, Success Tips, etc

What is Dropshipping? – Dropship is one of the popular terms in online buying and selling. The scheme is fairly practical and can be done by anyone. If you don’t have any capital at all, you can still run this one business model. Interested in becoming a dropshipper? Check the full explanation first!

What is Dropshipping?

Dropshipping is a business model where you promote products that you don’t produce yourself. A person who runs a dropshipping business is called a dropshipper.

So when running this business, there is a possibility that customers don’t know that you are a dropshipper. This is not a problem, as long as you yourself know very well the quality of the product you are promoting.

The way dropship works are that the dropshipper will promote the products sold by the supplier to get buyers.

If someone orders a product, the dropshipper will enter the order to the supplier to be sent directly to the customer on behalf of the dropshipper.

Difference between Reseller and Dropshipper

Many people misinterpret the two. Simply put, the comparison between resellers and dropships is:

Dropship

  • You don’t need capital to buy goods. You simply act as an intermediary between the supplier and the buyer, so there is no risk of unsold goods.
  • You don’t have to take care of shipping because the package will be sent directly by the supplier .
  • Can offer as many goods as possible according to availability from suppliers.

Reseller

  • You have to buy a number of products, then you can resell them.
  • The package is sent from you to the buyer, so you have to take care of the packing and shipping process .
  • Can only offer items that are already in stock.

Dropshipping Business Advantages

When compared with the reseller business model and being a producer, of course, this business model has advantages that can be taken into consideration. Here are some of the advantages of dropshipping :

1. Small Capital

The first advantage is that the capital is very small or even does not need capital at all. You only need a smartphone to market your products on the internet.

You can create social media accounts to sell, open an e-commerce store, or even create your own online store website.

2. No Warehouse is Needed

If you want to sell goods in large quantities, of course, you need a place to store these items. Through the dropship system, you don’t need it. So, not having a special place is not an obstacle to starting a business.

3. Save Time

As previously mentioned, you don’t need to take care of shipping packages as a dropshipper. So, your time is also not wasted. You can focus on continuing to promote your products online.

4. Low Risk

The dropshipping business risk is relatively low because you don’t need capital and don’t need to take care of the goods directly. You don’t need to think about the risk of a non-depleted stock or damaged items.

5. Flexible Workplace and Time

You can run this business anytime and anywhere, as long as there is an internet network. You can serve customer requests at any time and proceed to suppliers. It’s a good idea to have shop hours, so you don’t have to work all the time.

Tips and How to Dropship

Are you steady with this one business model? Although it looks easy and does not require special skills, basically this business requires high perseverance.

Here are some tips that you can apply if you want to become a dropshipper :

1. Define Product

We recommend that you choose one type of item category, for example, clothing, household appliances, food, electronics, or other categories.

Selling goods with different categories in a store will make customers confused.

2. Find the Right Supplier

Building relationships with suppliers is important. Especially for the dropship system, you only have one supplier so you won’t be confused if your buyers choose more than one item from different suppliers.

If you want to sell goods from other suppliers, you should create another online store. You can ask the supplier if they are allowed to become a dropshipper and are there any benefits you can get.

3. Determine Unique Selling Point

Adding unique selling points or unique selling points can be tricky, but that doesn’t mean it can’t be done at all.

Don’t just play with cheap prices, you can also increase the selling value by improving customer service, giving free shipping promos, or giving special bonuses to loyal customers.

4. Branding

Even though you are not a producer, that doesn’t mean you don’t need branding. You still have to build your online store brand well. Strong store branding can help bring in more customers.

5. Create a Website for Sale

Creating a website is also one way to brand your store. Having a website can also increase the credibility of your business. Buyers will usually feel more secure when transacting through the website.