How Does Dropshipping Work?
A brief overview for those who want to get in.
Nowadays, dropshipping is gaining more and more attention, but not everyone is acknowledged well about the simplicity of this phenomenon. In this article, we will analyze in detail this way of doing business and talk briefly about how and where to start.
Let's start from the very beginning. Dropshipping is a business scheme where the shipment and delivery of ordered goods are being done from the supplier to the end consumer via intermediary party - seller aka dropshipper. Important: seller doesn't have a warehouse to store goods. So how then, you ask? It's simple: the goods are sent immediately to the buyer from the supplier.

In other words, the seller searches for the customers, accepts orders and transmits information about order good to the supplier. After this, the supplier ships the order from his warehouse directly to the customer. The seller's earnings are his mark-up in excess of the wholesale price. Thus, financial risks are minimized.
What is needed to start making money on dropshipping?

According to the standard scheme, a potential dropshipper finds suppliers of the necessary goods, then creates an online store, which attracts customers through promotion via marketing channels and using any mechanics. As soon as a customer orders and pays through the online store, the earned amount of money drops to the dropshipper's account, part of which he gives to the supplier, and keeps the extra charge. Further, the seller enters the game and prepares the goods for shipment from the warehouse and also all the customs documentation, provides a guarantee and assumes obligations to resolve disputes.
Dropshipper has a huge space for imagination: you can not just resell the goods, but create your own brand, come up with an identity for it, invest sufficient funds in promotion and etc.

The life of a dropshipper is simplified if he works with Ecombo, since the platform takes on the selection of suppliers and top products, suggests profitable niches, automates and simplifies communication between the seller and the supplier, and integrates selected products into dropshipper's online store. In most cases, suppliers can be found in China, India, Turkey and the United States. The leader in terms of ease of finding goods (and suppliers too) is AliExpress.

As for the creation of an online store, there are tons of options that offer custom assembly of landing pages. We recommend using Shopify due to the transparency of the mechanics and the service as a whole.
We all know that payments on the Net are made though cashless payments. Often for this purpose dropshippers integrate card payments and international payment systems (Western Union, for instance) or electronic payment systems (Payoneer, PayPal, WebMoney, Epayments). Using a service like Shopify, the online payment function is automatically integrated in your online store.

In general, the scheme of work is simple and quite understandable. In the following articles we will talk about how to quickly create your own shop, methods of their promotion, popular techniques, we will talk about cool cases and useful life hacks.

Stay tuned!
Made on