What is Dropshipping and how does it work?

Published by Carolina on

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The dropshipping sales method has been gaining ground in the commercial scenario due to its ease of obtaining profit for people who do not have physical storage space.

In dropshipping, the owner of a online store acts as the intermediary between the seller who has physical stock and the final buyer.

This is because the store owner does the marketing and selling of the products, but the storage and delivery are the responsibility of the original supplier.

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It is a promising business model for entrepreneurs on the rise, as it helps to scale sales without spending on a physical place for stock, nor on labor and fees, as the product is sent directly from the primary supply to the customer captured by the intermediary seller.

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How to make money with dropshipping?

With technological advances, the commercial market also changes, which gives rise or establishment of several new business models, previously unfeasible.

Dropshipping is one of them. It is increasingly gaining strength for being a model of self-sustaining business and that makes it possible to reach customers all over the world.

In this business model, the owner of the physical store only needs to attract customers and contact the supplier to send the products, earning a percentage for the sale.

Getting to know dropshipping better

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To make it easier to understand this promising business model, let's explain it in a step by step very quick and simple:

  1. The owner of the online store captures customers through advertising and other marketing means;
  2. The customer buys a product in the virtual store;
  3. The merchant then forwards the order to the supplier;
  4. The supplier ships the product to the customer;
  5. Both the supplier and the intermediary trader gain from the sale.

Can anyone do dropshipping?

For someone who wants to have their own business, but is aware of the prices and fees for storing and shipping products, and therefore thinks about giving up on the dream, dropshipping is perfect.

So, if you fit this profile, you will certainly do very well in this business, but of course, you need to understand a little marketing, because you will need capture customers online or not.

Dropshipping is very viable because the merchant does not need a very large initial investment, and it is even possible to start with no money at all, using organic traffic.

First steps to start your dropshipping business

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To begin with, it is interesting for the trader or potential trader to study a little marketing and how to choose a good supplier.

To choose a supplier, the minimum to check is the number of sales made so far, the score, feedback on products and whether there are many complaints or praise. Choose whichever is among the best.

Another point is shipping, choose products from suppliers that have the lowest shipping, so you don't have to charge your end customer too much, charging absurd prices.

Stipulate a percentage to receive from the product sold, calculating to cover costs with paid traffic, if this is the chosen form of disclosure, and that over profit. For this, the trader must add a value to the price of the product offered by the supplier when adding it on its own website.

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A very important step is also choosing a good sales platform, with an easy-to-use interface for the user, and as complete as possible. There are models of free interfaces within online sales platforms (e-commerce), but there is also a paid option, if the merchant chooses to invest in higher visual quality.

But know, without a good marketing strategy, a great interface is of no use, so it's better to start investing in it and then think about buying better interface models or even your own domain.

like a good e-commerce platform, we recommend Shopify, which has free and paid models, and provides a great experience in your sales.

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