Dropshipping - A Smart Business Model

Dropshipping – A Smart Business Model

by Sumaiya Minnat
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Earning money online has become a trend today. Among the many ways available to do so, dropshipping is one of them. E-commerce businesses have to ship products to the customers and this can be a challenging and time-consuming task. So, many such businesses now outsource the order handling and shipping option to a third party. This is exactly what dropshipping business is.


Learn All About Dropshipping

In the dropshipping business model, the E-Commerce store has a website where it promotes different products. Once a customer places an order, the order gets sent to the dropshipper who handles it and ships it to the customer’s address. You may ask the dropshipper to take care of the customer service and returns as well. Dropshipping is a great way to earn money. Here you will know how to go about it so that you can do the job efficiently and at a low cost.


How Dropshipping Works

In dropshipping, the seller needs to sign an agreement with the dropshipper stating the way the business will be conducted. When the customer orders online, the seller confirms the order. The seller gives the order to the dropshipper who then ships the products to the customer. The customer then gets the product and pays for it. Sometimes, the customer may pay before shipping, if the seller demands it.

Businesses that use dropshipping must deal with generic products and compete on price. They will have a low margin, but the overhead cost will be considerably reduced. You won’t have to invest in pre-purchasing the products or rent a storage facility to store the products. So, the business start-up cost is minimum. You won’t need to worry about product damage or other issues. You set the price of the product and agree on the price at which you will get the product from the vendor. Dropshipping business model allows you to include a wide range of products without investing extra money. If you are interested in this business, then you must follow these steps:

1. Choose A Niche: With dropshipping you can sell lots of different products; but it is better to focus on a niche so that you can be set apart from the competitors. You can get ideas from Google Trends as it tells you which products are popular now.

2. Conduct Research: You should research on the competitors to see what they are selling. Don’t enter a saturated market; choose something different. You can search Google or use tools like Alexa to find information about your competitors. Social media is another place where you can learn about the activities of your competitors.

3. Find A Dropshipping Supplier: You should find a reliable dropshipping supplier for your business. You need to search for a dropshipping supplier with a good reputation. Customers who purchase online demand quick delivery and quality products. So, you must ensure that your dropshipping supplier can provide these things. There shouldn’t be any middleman involved as it may hamper the product quality and delivery time. Ask for samples of products to test for quality. You should find out about their customer support as well. It is best to read customers’ reviews before finalizing your decision about the dropshipping supplier.

Another option is to look into DSers which is a marketplace to find products and connect your store with different suppliers around the world. This app will manage the orders, inventory, packaging, and shipping. The app uses AliExpress to find products and add them to your store. SaleHoo, Megagoods, Doba, and Wholesale Central are some other marketplaces you can look at. You can use Fulfillment by Amazon (FBA) as well. With this service you won’t have to sell products on Amazon. You can store the products in an Amazon fulfillment center and offer Prime Shipping option, customer service, and returns management, and also send restock alerts.

4. Create An E-Commerce StoreFront: You can use different website development tools or hire a web designer to create a beautiful E-commerce Storefront. You will display your products here and the customers will order from your online store. When developing the website you will need a domain name, web hosting, a CMS like Shopify or WordPress, an integration option with chosen dropshippers, and a built-in payment system.

5. Market Your Products: You must invest in marketing the products. You can use paid ads, SEO, social media marketing, and other marketing strategies to promote the products. Set up a daily marketing budget and experiment with different marketing strategies to promote your products online.

6. Keep Track Of Your Progress: You should use analytics to know how your shop is performing. Accordingly, you can change your marketing plan, add new products, or look for new dropshipping suppliers. The analytics will help you see which products are selling well, how many visitors you are having every day, the demographics of your customers, and other things. The analytics will help you to make important business decisions.



You can start your dropshipping business by creating an attractive website and collaborating with dropshipping suppliers. With very little investment you can earn a lot of money and expand your business. You just need to choose the right products that will appeal to a lot of audiences and make sure that the product quality and delivery time are well-maintained. Dropshipping allows you to conduct business from anywhere anytime without the need for any storage facility or shipping hassle. So, it’s a smart way to earn money.

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