Building a dropshipper business is a form of business that is very suitable for beginners with a small risk of loss and only requires a small amount of capital. In this Tutorials section, I will discuss in detail, starting from the introduction, disadvantages and advantages of dropshipping and how to start a dropshipping business,
What's Dropshipping
Dropship is selling goods/products belonging to other people/suppliers, directly to consumers without having to buy goods first as inventory, then if there is a purchase order, the dropshipper only needs to continue the order and payment to the supplier and then the process of packing and sending goods to the buyer will be carried out by the supplier, but the sender's name is the dropshipper.
So the role of the dropshipper is only as a trade intermediary, and will take profit from the difference in supplier and sales prices of around 20%.
How dropshippers work:
1. Consumers buy products in your store
2. You receive money from customers, take your profit.
3. Order goods and send money to suppliers.
4. The supplier sends the goods to the buyer on behalf of the dropshipper.
Advantages and Disadvantages
Before you set up a dropshipping business, it would be better if you studied some of the advantages and disadvantages, so that you can take full advantage of the dropshipping business and can take action to reduce the risk of losses.
Advantages of Dropshipping
1. Easy and simple
It can be done by anyone even by beginners. You only need a mobile phone and internet data.
2. Low Business Risk
Because dropshipping does not have inventory, the risk of unsold or expired goods will not occur.
3. Small Business Capital
No large capital is required, so it will be very suitable for small investors.
4. Many choices of product types
Many types of products are available, even dropshippers can sell goods from several suppliers at once.
5. Flexible
Dropship business is an online business so it can be run anywhere and anytime.
Disadvantages of Dropship Business
There are several drawbacks that need to be anticipated to reduce the risk of loss, including:
1. High level of competition
Online trade competition is very high, so it takes great effort to promote goods.
2. Small net profit
Dropship will require promotion and marketing costs so that it will reduce net profits.
3. Problem Supplier
If you are not thorough and smart, if the dropshipper chooses the wrong supplier, big problems will occur, such as sending the wrong item, the shipping process is slow, the packaging is damaged/bad, then the dropshipper's reputation will be destroyed at the start of his business career.
4. Lack of inventory of goods at the supplier
If an order and payment occurs but the supply of goods at the supplier is empty or unavailable, the dropshipper will accept consumer complaints.
5. Customer Complaints
Dropshippers must be patient in accepting customer complaints, and must be able to solve problems quickly.
How to Start a Dropship Business
At this point, it means you already understand what dropshipping is, how it works, advantages and disadvantages, and the next step is how to start a dropshipping business in 5 stages, including:
1. Determine the Products to be Sold
The first step to running a dropshipping business is determining the products to be sold, such as shoes, bags, clothing, herbs, beauty products, electronics, children's toys, etc. Determine the target customer, and make sure the product you are going to sell can make a profit. Beginner dropshippers can search for products using Google Trends. Dropshippers can also do research on the best selling products online.
2. Determine Supplier
After being able to determine the product to be sold, the next step is to determine the supplier, do in-depth research before choosing the right supplier. Collect information about evaluation suppliers and compare about credibility, product quality, supplier rules etc.
3. Set the Product Sales Price
Next is to determine the selling price. evaluate market prices for similar products and what prices are from suppliers, so dropshipers can find out the profit to be obtained.
4. Create an Online Store
Store design, add products, provide detailed information about products, such as photos, product descriptions, payment methods, use of delivery services, and shipping costs.
5. Promote Dropship Business
There are several ways that can be used to promote products, such as SEO, Email Marketing, Paid Advertising (PPC), Social Media etc.
6. Sell Products Through the Marketplace
The many available marketplaces allow dropshippers to sell their wares more easily, or dropshippers can also find suppliers directly from the marketplace.
What's Dropshipping
Dropship is selling goods/products belonging to other people/suppliers, directly to consumers without having to buy goods first as inventory, then if there is a purchase order, the dropshipper only needs to continue the order and payment to the supplier and then the process of packing and sending goods to the buyer will be carried out by the supplier, but the sender's name is the dropshipper.
So the role of the dropshipper is only as a trade intermediary, and will take profit from the difference in supplier and sales prices of around 20%.
How dropshippers work:
1. Consumers buy products in your store
2. You receive money from customers, take your profit.
3. Order goods and send money to suppliers.
4. The supplier sends the goods to the buyer on behalf of the dropshipper.
Advantages and Disadvantages
Before you set up a dropshipping business, it would be better if you studied some of the advantages and disadvantages, so that you can take full advantage of the dropshipping business and can take action to reduce the risk of losses.
Advantages of Dropshipping
1. Easy and simple
It can be done by anyone even by beginners. You only need a mobile phone and internet data.
2. Low Business Risk
Because dropshipping does not have inventory, the risk of unsold or expired goods will not occur.
3. Small Business Capital
No large capital is required, so it will be very suitable for small investors.
4. Many choices of product types
Many types of products are available, even dropshippers can sell goods from several suppliers at once.
5. Flexible
Dropship business is an online business so it can be run anywhere and anytime.
Disadvantages of Dropship Business
There are several drawbacks that need to be anticipated to reduce the risk of loss, including:
1. High level of competition
Online trade competition is very high, so it takes great effort to promote goods.
2. Small net profit
Dropship will require promotion and marketing costs so that it will reduce net profits.
3. Problem Supplier
If you are not thorough and smart, if the dropshipper chooses the wrong supplier, big problems will occur, such as sending the wrong item, the shipping process is slow, the packaging is damaged/bad, then the dropshipper's reputation will be destroyed at the start of his business career.
4. Lack of inventory of goods at the supplier
If an order and payment occurs but the supply of goods at the supplier is empty or unavailable, the dropshipper will accept consumer complaints.
5. Customer Complaints
Dropshippers must be patient in accepting customer complaints, and must be able to solve problems quickly.
How to Start a Dropship Business
At this point, it means you already understand what dropshipping is, how it works, advantages and disadvantages, and the next step is how to start a dropshipping business in 5 stages, including:
1. Determine the Products to be Sold
The first step to running a dropshipping business is determining the products to be sold, such as shoes, bags, clothing, herbs, beauty products, electronics, children's toys, etc. Determine the target customer, and make sure the product you are going to sell can make a profit. Beginner dropshippers can search for products using Google Trends. Dropshippers can also do research on the best selling products online.
2. Determine Supplier
After being able to determine the product to be sold, the next step is to determine the supplier, do in-depth research before choosing the right supplier. Collect information about evaluation suppliers and compare about credibility, product quality, supplier rules etc.
3. Set the Product Sales Price
Next is to determine the selling price. evaluate market prices for similar products and what prices are from suppliers, so dropshipers can find out the profit to be obtained.
4. Create an Online Store
Store design, add products, provide detailed information about products, such as photos, product descriptions, payment methods, use of delivery services, and shipping costs.
5. Promote Dropship Business
There are several ways that can be used to promote products, such as SEO, Email Marketing, Paid Advertising (PPC), Social Media etc.
6. Sell Products Through the Marketplace
The many available marketplaces allow dropshippers to sell their wares more easily, or dropshippers can also find suppliers directly from the marketplace.
