Dropshipping: what is it? [COMPLETE GUIDE]

The Internet is a real gold mine to make money, but it is still difficult to find the ideal deal! Learn what dropshipping is with us, and start making money today.

Dropshipping is a low investment method that can make you money quickly.

Dropshipping is a term that is increasing more and more in online sales and it is the trend in Brazil and worldwide! But for many people, it’s still a concept that isn’t understood or even unknown.

So, to help you understand more about dropshipping, I have prepared today’s article on the subject. Interested in learning more? So follow with me right now!

What is dropshipping?

To fully understand the definition of dropshipping, it is necessary to dissect the different steps step by step.

Three actors enter the dropshipping process:

  • The supplier, which offers its product range to resellers.
  • The reseller, which highlights the vendor’s products on its e-commerce site
  • The customer, who buys the products on the reseller’s website and receives them directly from the supplier

To better understand the various stages in the other direction, you’ll put yourself in the shoes of an Internet user who wants to buy a product on a commercial website.

  • When you arrive at the online store, you will find a product that appeals to you. You will proceed with the purchase.
  • The e-merchant will receive your order. He does not have stock at home, so he will place an order with the supplier indicating his address.
  • Therefore, the e-merchant supplier will take your order and ship the product to your home.

This tripartite system represents dropshipping.

The dropshipper (dealer) is simply a service provider whose sole mission is to sell the supplier’s product to earn a profit.

The advantage you have when launching a dropshipping site is that you will be able to focus on your core business: online sales. In no time you will take care of logistics, inventory or shipping.

You certainly understand, the supplier has a very important place in the process. That way you must find reliable suppliers!

The dropshipping market and suppliers

Now that you know what dropshipping is, part of the business remains mysterious: how do you get a turnkey dropshipping site with a quality supplier to start your online business?

Dropshipping is largely provided by Chinese suppliers and wholesalers, and the number of Chinese companies specializing in this business has been steadily increasing for years.

With Shopify, you can take advantage of many providers! This ecommerce solution is not just a turnkey solution for creating dropshipping websites.

It is also an extension that allows you to choose and import products from the largest e-commerce catalogs in the world into your store, taking advantage of the prices of suppliers:

Ali Express supplier

We know that part of your success will come from choosing your supplier.

That’s why, during product searches, Shopify displays trust indicators on the Ali Express website. This information will make it easier for you to choose wholesaler and dropshipping products for a good niche site.

To create this confidence indicator, some criteria are essential:

  • The number of orders placed,
  • The supplier’s reputation according to customer ratings,
  • Delivery time,
  • etc.

If you want to be sure you find the right supplier and be able to trust the quality of service, there’s nothing better than testing the supplier by ordering the items yourself.

You will be able to see the delivery times, the packaging, the product range and, above all, the quality of the products.

National suppliers

To start dropshipping, of course you can find many suppliers closer to your point of sale, in Brazil.

In fact, there are several companies in Brazil that work in this way, and the trend is just to increase.

This partnership allows you to deliver to your customers much faster and have more confidence in the quality of the products sold.

The budget to get started in dropshipping

You are probably wondering what the budget is for starting dropshipping. The advantage of dropshipping is that anyone can create a website to sell on the internet.

Starting costs are almost zero. This low investment is possible because you don’t have stock and orders to make and, therefore, you don’t have logistics!

In traditional e-commerce, merchants store their products or buy stock in bulk. It is a very significant cost for e-commerce.

Dropshipping removes all these restrictions, it’s risk free!

Obviously, there are some mandatory expenses to consider when you start dropshipping.

  • Costs to create the store

For example, your domain name. You should invest in purchasing a domain name (about $10/year).

If you want to use a powerful solution for creating your shop with almost zero fees and you have:

  • Great design,
  • Training offered,
  • An automation tool for importing products and taking orders,
  • Partnerships with global suppliers,
  • etc.

You will need to subscribe to a larger plan on Shopify that enables all of these and more functions mentioned above.

  • Fees for promoting the store

If you want to generate lots of sales quickly while waiting for your natural referral to bear fruit, you’ll also need to invest in a web marketing strategy.

You can, for example, advertise on Google Ads, Facebook Ads, Instagram Ads etc.

This investment will have repercussions on your website and you will quickly sell products to generate turnover!

Who can start dropshipping?

Thanks to this flexibility, dropshipping is a profession without a degree, accessible to the general public and anyone can sell on the internet.

Auto entrepreneurs continue to be the biggest followers of this model because it is very easy and fast to create a business and launch an online store without inventory management.

But there are also many people who are unemployed or looking for extra wages who start a dropshipping activity.

We can also cite students who generally have a lot of fees in addition to their studies and are looking for activities to earn money.

Some tips for successful dropshipping

Now that you know what dropshipping is, I’ll share a few tips before starting an e-commerce site:

  • When choosing your products from your supplier, read customer reviews to find out exactly the pros and cons. This information can be useful for choosing the article or even for preparing your product sheet.
  • Target a niche site and avoid creating a very general store. If you sell a lot of different products, Internet users will think they are in the market and run the risk of getting lost on the site.
  • Lastly, is to hire some e-commerce or WooCommerce developers to build your dream e-commerce site and to maintaine it for long lasting term.

Did you like to learn more about dropshipping? So be sure to follow the other articles on the blog, I have much other news for you!

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