Dropshipping for beginners
Selling products without physically having them in stock is a simple way to earn money. Let’s talk about dropshipping for beginners. This is an opportunity to make big money without any investments.
A dropshipper acts as a mediator between the seller and the buyer. The main task is to find as many buyers as possible. You will get wholesale prices for the products and will be able to set your own markup.
Dropshipping for Beginners
You need to find a customer who wants to order a product. Take a prepayment or accept orders with payment upon receipt.
Next, we write to the supplier and provide the customer’s details. If we have received funds in advance, we transfer the cost of the product to the manufacturer and keep the profit for ourselves.
The supplier processes the order and sends it to the customer. That’s all. Minimal actions and quick earnings.
It is important to choose a specific niche and decide on suppliers. We create a business page on social networks or a website and upload the products. It’s better to allocate money for advertising because now it’s impossible without it. You don’t want to wait long for the first customers, do you?
How much can you earn from dropshipping?
For example, the wholesale cost of a watch for a dropshipper is 20 $. You analyze competitors’ prices and set your markup at +20 $. You list the product online at a price of 40 $. When a customer orders the watch, you transfer 200 hryvnias to the supplier and keep the other half (the margin) for yourself.
Dropshipping Pros and Cons
Let’s start with the pros. There’s no need to purchase inventory upfront. If you’re unable to make a profit, there won’t be any financial losses. But believe in yourself—you can do it!
No need for physical space or warehouses. You don’t have to go to the post office and ship the product; the supplier handles that.
With the dropshipping model, many manufacturers and suppliers are willing to work. Finding products to sell is easy. Make sure to explore offerings from as many suppliers as possible to choose the most advantageous ones.
Now let’s talk about the cons. Among good suppliers, there may also be dishonest ones. A dropshipper may receive high-quality goods for testing and evaluation, but the manufacturer may send substandard products to the customer.
Another downside is that it’s challenging to control interactions with customers. If something goes wrong, ultimately, you’ll be held responsible.
Cash on delivery (COD) orders pose a risk. If a customer orders a product with COD and doesn’t accept it, you’ll have to cover the shipping costs.
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