In the previous article Wanna Start a Business with Minimal Capital? Try Dropshipping! We’ve learned what a dropshipping business is and how it’s different from a reseller. This time we will discuss more about how the dropshipping business actually works.
The dropshipper determines what products to sell. Find a reliable supplier of goods. Make sure to establish a good relationship to ensure stock availability and updates on the latest goods, including about the payment scheme.
Dropshippers market their products to consumers, usually through social media, marketplaces, and websites. Product photos are usually provided by the supplier of the goods.
The customer buys the product the dropshipper promotes. Then, the buyer makes payment to the dropshipper.
The dropshipper then forwards the order to the supplier. The supplier prepares the goods, then orders are packed and shipped from the warehouse to the buyer’s address.
business Dropshipis now more involved in the online store business owners. A business that is relatively easy to do because of minimal capital and no need for a business location.
- Lack of capital
- can be done anywhere
- Easy to run
- products that can be sold varies
- Needless to have storage
- No hassle with packing and shipping of goods
Lack of dropshipping
- Margin low profits because they have to be shared with suppliers
- dropshipper can not ensure the availability of goods
- Name of good dropshipper is highly dependent on the quality goods from suppliers The
- speed of delivery of goods depends on the supplier
- Suppliers often experience errors in product delivery