Many people dream of having a job as a businessman. However, a few of them thinking that the capital required is not small. Well, for those of you who want to start a business but have limited capital, you can try becoming a dropshipper. Dropshipping is a relatively low capital business and anyone can do it.
What is a Dropshipping Business?
Dropship means a sales system where the seller or dropshipper only needs to market and sell goods belonging to other parties without the need to buy them first (stocking goods).
With a simple business scheme, drop shipping can also be done anywhere as long as you have an internet connection. Nowadays, many people get into this one business.
There are also a lot of goods that can be sold because currently there are many suppliers or suppliers of various products that provide dropshipping sales for their partners. Including cosmetics, food and beverages, medicine, clothing, and electronics.
The concept of the dropshipping business is that the dropshipper connects producers or suppliers (usually importers or wholesale centers) with buyers. In this case, the dropshipper becomes a third party.
What is The Difference Between a Dropshipper and a Reseller?
The meaning of dropship is often equated with reseller. The difference is in the drop shipping scheme, goods can be sent directly from the supplier to the buyer. So that the seller does not need to provide a place and bother storing or packaging goods to be sent to the buyer.
Another difference, resellers usually have to spend capital to buy stock of goods from suppliers and then resell them.
In the dropship cooperation scheme, the dropshipper does not have to spend capital because everything has been taken care of by the supplier. The dropshipper’s job is only to find customers.
By utilizing digital technology, dropshippers take advantage of online sales, especially through social media and e-commerce.
After getting a customer, the dropshipper can directly contact the supplier of the goods (forward the order). Then, send the order directly to the buyer’s address.
Dropshippers get a profit margin from the price difference between the supplier and the selling price to the buyer.