The term dropshipping is applied to someone who takes orders from a customer and passes them on to a supplier to handle. It is similar to being an agent for the wholesaler and you are essentially, for all intents and purposes, the middleman of a transaction. Success will always rely on a few determining factors but dropshipping can definitely be a profitable business module, as it requires minimal investment and is very low risk.
High Profit Margins
Like any business, it will take time to build up a dropshipping company but if this is done correctly and intelligently, there is no reason why your dropshipping business won’t be highly profitable. You can operate your dropshipping business by using websites like eBay and Amazon and you should also set up an ecommerce website where wholesale stock is listed by category to make it easy for your site visitors to find which products they want.
Starting an online dropshipping store is fairly simple and straightforward and here’s why:
You can choose which location you want to work from, as there is no need to have a storage facility or a warehouse, so you can work from an independent location such as from home. As long as you have a computer and an internet connection, you are able to conduct business.
How much you will make from running a dropshipping business will vary and it will take time to build up a customer base and get to know the industry in terms of understanding what your customers want and which suppliers are good to work with. However, if you adopt the right approach, it is likely that you will earn enough in the first few months to supplement your regular income and after a year or more, you may well be earning a six-figure salary from it.
Profit margins are roughly determined by the following:
Most of the day to day work will handle itself, so the input you need to put into the business is minimal. Someone else is handling the storage of the products, the handling and the shipping, so all you need to do is take the order and pass it on so once the business is established, the work itself is fairly easy.2016-01-26