Dropshipping is becoming increasingly popular these days. Just a few years ago, this term and sales method were unknown.

Dropshipping involves the sale of goods through Internet resources from the supplier (manufacturer) to the client and receiving a certain percentage of the transaction. The person who fulfills these conditions of sale acts as an intermediary. Let's look at the advantages, disadvantages and nuances of dropshipping in detail.

Anyone can try their hand at this, regardless of age, level of education and personal preferences. And most importantly, to start you need a minimum of investments, because there is no need to rent space for a warehouse and deal with logistics. And the financial risks from this type of activity are minimal. Selpway Trading Company will help at all stages of the business process: from finding clients and making presentations to closing the deal.

For those who do not know how to make money from  dropshipping, this article will be very useful. Read the step-by-step instructions to start earning income from direct import deliveries or cooperation with manufacturers.

How did dropshipping come about?

Dropshipping appeared not so long ago. Many multinational organizations produced products and sold them throughout the world. However, when the global economic crisis hit in 2008, sales of all types of products fell significantly. People began to save more and buy fewer different products.

China took the difficult situation into its own hands and began producing more cheap goods, and also identified different ways of selling through intermediaries. Thus, dropshipping has occupied a significant niche in the sales field. Many enterprising people began to use this type of business and made good money from it. Thanks to dropshipping, many enterprises have not only stabilized their profitability level, but also increased it several times.

Benefits of dropshipping

Dropshipping gives absolutely everyone the opportunity to earn  money without  any investment. After all, the intermediary does not need to purchase goods, rent trading floors for storing goods, hire staff, pack orders and organize delivery. All these functions are assumed by the supplier (manufacturer) of the product. The intermediary only needs to create a page on a social network or his own website, interest potential buyers and place orders.

Many online stores currently use a similar scheme. Moreover, the end consumer may not even know where the goods he ordered are supplied from.

A significant advantage for the intermediary is the ability to regulate prices. In any case, they will always be lower than in regular stores. Also, the intermediary can choose the range of products that he wants to provide to consumers.

Experienced dropshipping specialists do not limit themselves to one supplier and work with several dropshippers at once. Thus, they have the opportunity to provide customers with the most relevant products that are favorable in price and quality.

Perhaps the most important advantage of dropshipping is the absence of financial risks. Even if the intermediary does not have many orders or has no orders at all, he will not lose anything. But the experience of communicating with suppliers, clients and delivery services can be very useful for further development in the field of sales.

In addition, we will talk about popular marketing tools, how to find wholesale buyers , which products are the most profitable, how to properly create a storefront and other tricks of a successful business.

How does dropshipping work?

The operating scheme of direct deliveries is extremely simple. You are essentially an intermediary: you search for customers, create orders and send them to manufacturers. That is, you pay for goods at wholesale prices and sell them at retail prices. This will be your income. But to get it, you must find buyers.

This task no longer requires financial investments, but personal ones - this is a matter directly in your hands. It takes time and activity. Fortunately, today you can run a commercial page on any social network; you don’t even need to create your own website and invest in its promotion.

If you are interested in this mechanism and its capabilities, but do not know how to start dropshipping , start with the basics - finding suppliers and selecting products. Decide what you will do: selling toys, clothes, linen, home textiles, various electronics?

The style of your store, text and graphic content depend on the choice of products. So, for example, when choosing products for children, you need to post pictures of toys, and next to them, children playing happily. The texts are all written in a positive way, with an emphasis on safe materials and the benefits of games.

Dropshipping jobs require you to have strong communication skills. Despite the fact that the business is conducted remotely, its success depends on the ability to find a common language with people. You need to constantly answer customer questions, provide information about the product upon request, be friendly and polite with customers and suppliers.

After you decide on the products, find sites that work on dropshipping, start creating a storefront and gaining subscribers.

Please note that manufacturers offer very favorable conditions for starting:

• minimum order from 1 unit of goods;
• fast delivery by transport companies and mail throughout the country;
• discount, the size of which increases with sales volumes;
• advantageous offers, promotions, etc.

To understand what is profitable to sell on the Internet , collect information about leading trends and top sales on different sites. Look, for example, at the pages of celebrities on Instagram; many people are guided by their style.

A talented seller will be able to sell a boat in the desert, so it all depends only on your enthusiasm, gut feeling and taste. Nowadays the following categories of goods are in great demand:

• children's clothing and toys;
• smartphones and accessories for them;
• hoverboards;
• home textiles;
• vapes, refills for them, IQOS;
• Korean cosmetics, etc.

To create a product catalog that will be of interest to your target audience, focus on seasonality and customer preferences, and also take into account the upcoming holidays.

Detailed instructions for working in dropshipping

A novice intermediary can  start a business from scratch  without special entrepreneurial skills by creating a page or group on social networks. You can also develop your own website, domain name and hosting with the help of specialists or modern web designers that are available on the Internet. Next, the intermediary needs to clearly define the business development strategy and follow several proven recommendations:

• determine the category of goods with which you want to work;
• carefully study suppliers' websites, terms of cooperation, customer reviews and pricing policies;
• place selected products on your online platform and advertise them in a high-quality manner to interest potential customers;
• place orders and at first carefully monitor all stages of sales and delivery;
• monitor price changes, promotional offers and general organizational nuances of the work of the supplier and delivery service.

One of the secrets to the successful development of dropshipping is the systematic updating of product information, interesting presentation of publications and active interaction with potential and current customers.

Naturally, as in any work, intermediary through the dropshipping system has its drawbacks. You do not see the product and cannot objectively assess its quality. Sometimes you have to deal with customer complaints, returns, limited supplier guarantees, shortcomings in the delivery service, etc.

However, dropshipping provides an opportunity to start a business from scratch and experience the inner potential of an entrepreneur without any risk. In any case, with desire and systematic work, this area of ​​activity can give a very positive result.

Difficulties of dropshipping

Any business has its risks and disadvantages. When doing dropshipping, you will not be able to personally control the shipment of purchases from the supplier to the customer. But the buyer will present all claims and dissatisfaction regarding the quality of the goods and delivery to you. It is also quite difficult to analyze the balances of the supplier in order to know what goods are in stock.

Dropshipping only works as a business if you do it consistently. Stay in touch 24/7, quickly respond to requests from your target audience, conduct surveys, arrange mini-draws. You need to create interactivity, be visible, and then you will be imbued with trust and respect.

If you are starting a business from scratch, promote it. The minimum advertising period must be three months. Carefully study the terms of cooperation, ask for consultation if you need detailed answers.

Engage in the sale of only those products in which you are personally interested. This way you will intuitively understand who your client is and what his needs are. Always study your competitors, their strengths and weaknesses.

Direct delivery is a type of business activity that requires a serious approach and the ability to quickly respond to customer needs.