Many have awoken to see that the 9-5 job isn’t satisfying their need for freedom and instead turned to try to make a passive income. Drop Shipping is one of the newest and easiest business modules, but is it a successful way to make money online?
What is Dropshipping?
Table of Contents
- 1 What is Dropshipping?
- 2 Benefits of dropshipping
- 3 How to build a dropshipping store
- 4 Can You Make Money Online With Drop Shipping?
Drop Shipping is an ecommerce method where the seller doesn’t handle the product or stock. Rather a 3rd party handles all of the behind the scenes. When a customer purchases on the seller’s site they pay full retail price.
The seller will then forward the consumer’s information to the supplier and pay wholesale. The supplier will then send the product straight to the customer, leaving the seller with the profit.
Benefits of dropshipping
The module is easy to understand, but what are the true benefits?
1. Cheap And Easy Start-Up
With very little investment needed To start and run a dropshipping business, you do not have to break the bank to start running. The main investment is a good platform to host your website on (estimated around $30) and tools which all pay off when you start getting customers.
It is also great for new entrepreneurs as there is very little risk when it comes to starting up. You do not need to invest much in the beginning so you will not lose much if you change your mind.
2. You can change directions
It can be a daunting thought going into a niche that you are unsure on. However, with dropshipping, you can easily change your niches, without losing too much.
The only issue that may come with switching to a new niche is that you may have to rebrand which may cause you to have to buy a new domain name. However, you can find affordable yearly domains from Shopify.
3. Demand and supply
It is demand and supply so the seller doesn’t purchase the product from the supplier until the consumer has purchased the product. This also helps with stock as you will never have loose stock that hasn’t sold.
You do not have to worry about: stock level, managing a warehouse/ storage, shipping orders, and handling returns, so it will never be too time-consuming. Dropshipping is a passive income that mostly takes work to start-up however will run and make you money with very little maintenance.
4. Unlimited success
There are unlimited amounts of potential with your dropshipping store- depending on how hard you work with it, your success is infinite. Your store could also become a passive income where you make money while living your day to day life. It is not a time-consuming business to run and it pays for itself.
5. Market testing
You don’t have to do too much research into products as there are many platforms such as Dropship Spy the home of 1750+ winning products, (products that are proven to have high engagement) that have already sourced brand new products for you every day!
How to build a dropshipping store
1. Finding A Hosting Platform
Some may say selling through social media is the best way to go. However, finding a hosting platform that is based around e-commerce is better for an automated and seamless website! Many have tools to help with orders, shipping, tracking, and to help with customers.
You can also customize your website to align with your brand. Extra apps that many hosts have been automated emails, which is great for contacting customers who have abandoned their carts, along with automated coupons that are easy to set up and promote on your website.
Hosting platforms vary in price however the average is around $30 a month, which is a great investment if you are looking to make money online!
We recommend Shopify as a great hosting platform. It is mostly used for ecommerce websites which makes it more personalized to the type of business you are in.
Shopify allows you to choose from themes that are provided for free and are completely customizable so you can make your website your own. They also give you behind the scenes tools such as data about potential customers, analytics, marketing tips, and much more.
Shopify also has thousands of apps that help you with its shopify app store. It is also compatible with apps such as Hucksta which import products and their data straight to your store, saving you much more time!
2. Sourcing Products
When sourcing products you can either use services that provide information about successful products or research and find them yourself.
Sourcing your own
You can source your own products by researching how popular they are. You can use tools that evaluate how many times they have been searched for or brought from shops similar to yours.
It is important to choose ones that are demanded by customers. Google trends are great to see how many searches there have been for a product.
Using winning products
Winning products are products that have shown high engagement. Dropship Spy sources and uploads 2 each day, with currently 1750+ the investment of $20 a month ($12 for the first month with code LOCKDOWN) you can add products effortlessly with a click of a button to your store.
Each product also has 3 different suppliers to choose from, a short round-up of the supplier, video adverts, Facebook descriptions, and Influencers that would have the perfect audience for that product. Making the sourcing and selling of the products as easy as ever.
Advertising is so important, as it gets your brand, business, and product out there! There are many ways to do advertising but here are the most proven ways of doing so!
Organic is essentially building a committed following, that trusts your products. This takes time but is cost-effective. Social media is the main key and it is free. This is done by posting content that is based on your products while enticing your audience to see more.
Influencer’s are the newest way of advertising, and are great as they have a following that trusts their opinions. It is a quick way of advertising, however you do have to pay which can vary in price.
Paid is great as it is fast and you can decide how much you spend for an ad to run and how long for. Not as cost effective but definitely time effective.
Can You Make Money Online With Drop Shipping?
Yes! But it depends on how much work you are willing to put in and how you learn from failures. Any new business venture can come with some risk, however with drop shippings low risk it is great as you can make it into an income that not only pays for itself but snowballs revenue with little maintenance.
In conclusion, Dropshipping is perfect for anyone that wants to earn a passive income and potentially have the freedom to escape their 9-5 day jobs. You can work online and become your own boss, from building your own business, which is the ultimate goal for many.