IDEA #3 :- Start a drop shipping store

How to start Drop shipping?

When you run a drop shipping business, you sell products without buying them first. Instead, you contract with a supplier who will send the products directly to your customer. Because a drop shipping business has no overhead, you can usually run one out of your home or office.

These are the following step to understand drop shipping properly:-

Your customer places an order from your online store

Your store automatically sends the order to your dropshipping supplier

Your drop shipping supplier prepares your customer’s order.

Your drop shipping supplier ships the order directly to your customer.

Advantages of drop shipping:-

1)Low startup cost: you can start selling products online without a lot of early investment.

2)Time-saving is key:-

Organising your stock and preparing it for delivery can often be a time-consuming nightmare. Using a third party to ship items saves handling, labelling, packing, shipping and so on. This leaves you with the time to focus on growing your business in different areas.

3)Convenience for Supplier and Dropshipping Store:-

With dropshipping, neither the dropshipping store has to worry about shipping and packaging of the product nor the supplier has to worry about marketing and promotion of his products and both reap decent profits.

Dropshippers can work with multiple wholesalers at once.

4) scalability:-

As dropshipping stores don’t require storage facility and are completely digital, they are easier to scale.

Even if one niche or product doesn’t sell well, dropshipping stores owner can easily move to a better selling product.

5)It’s easy to expand

Disadvantages of drop shipping:-

1)Reduced margins, or low profit margins especially if you find yourself competing with other online merchants that have set their shop’s prices at rock bottom prices. With competitors making only minimal profits, if you try to match them or compete head on with their low prices you may find that your profits are only pennies.

2)Overcrowded market, with the dropshipper supplying the same products as you have to thousands of other drop ship sellers like you.

3)Requires basic skills (at least) to manage an online store, including some technical knowledge like uploading products to shopping cart, cropping photos, writing unique product descriptions.

4)Drop shipper can make mistakes, as it is not a guarantee that they fulfill 100% of their orders 100% correctly.

5)If selling on huge marketplaces such as Amazon (alongside thousands of other merchants using the same drop shipper), price comparison is easy and you may end up discounting and discounting just to beat everyone else.

Frequently Asked Questions:-

1) Is dropshipping still profitable 2020?

=> Yes, without any doubt dropshipping is still profitable in 2020. ... To utilize it properly you must know profitable dropshipping products and also all the techniques of marketing your store. And once you follow these rules then the dropshipping success rate can become higher.

2) Why do most dropshippers fail ?

=> One reason most dropshippers fail is that they are using the wrong platform to market their dropshipping stores and products. ... If dropshippers have found products that are already selling in high volumes on other shopping stores then you only have to market them.

3) Can I dropship to USA from India?

=> Hi, you can open a store online, and then sell item to USA. You can choose eBay, which has a huge market on US, or you can create your own store with Shopify.

Can I dropship on my own website?

The best ones for dropshipping are: Building your own online store using an ecommerce builder (like Shopify or BigCommerce) Selling through an online marketplace (like Amazon or eBay)

4) What should I not dropship?

=> If you're dropshipping, then you can't see the products before they go to your customers. This means that you and your customer can't be 100% sure that the product is in perfect working order.

Here are some examples of electronic products you should avoid:

• Products with batteries.
• Razors.
• Cellphones.
• Security Cameras.

5)Do you need a business license to do drop shipping?

=> In order to do business with a real wholesale distributors, you will need to provide a “Sales Tax ID number” with your application. If a wholesaler is not requiring this they are not going to be a reputable, trustworthy company to work with. ... You actually do not need any licenses to start dropshipping business.

Note :- 

Drop shipping is not an automatic path to success. In fact, it is hard work. It is not just setting a system that runs itself, orders come in, manufacturer ships and you pocket the difference. Since you may be just one of the merchant working with the same drop shipper and hustling for the same dollar, you need to make every effort to differentiate your business from the others.