Who says you have to prepare a lot of capital to start a business? There are, really, the type of business that can give you additional income without needing too much capital and time.
If you’re looking for such a business, dropshipping is an option worth it to consider. The dropshipping system is relatively easy to understand so it can be practiced by anyone, including beginners.
But, do you understand the meaning of dropshipping? What does the business model look like and how does it work?
Come on, keep reading this article to find out complete information about dropshipping, starting from its definition, how it works, to its profit margins!
What is Dropship?
The definition of dropshipping is a business that allows you to sell products to buyers without having to stock the product. Well, people who do dropshipping businesses are called dropshippers.
Because there is no need to stock products first to sell, the dropship system is a business option with minimal capital.
As a dropshipper, your main task is to promote or market products to target customers.
With a simple system, you can do a dropshipping business anytime and anywhere as long as you are connected to the internet network.
What is the Difference Between Dropship and Reseller?
Up to here, you might be wondering what the difference between a dropshipping system and a reseller is, considering that both of them resell products belonging to other parties.
In fact, dropshipping is different from resellers even though they both have an online work system and do not have their own products.
A reseller is a person who buys a product belonging to a brand or someone else to promote and resell. So, resellers will stock the product first before reselling it. This is different from a dropshipping business that doesn’t require you to stock goods.
Then, how can you meet customer demand if there is no product in stock? Well, you need to understand how dropshippers work to know the answer.
How Dropship Works
The dropshipping business is a simple business, so many people try it when they first start their own business. Indeed, how does dropshipping work? Here’s the explanation:
1. The seller is looking for a supplier who offers the product he wants to sell
Dropship means a business that does not need to stock goods. Generally, this business system begins when a dropshipper intends to sell a product, for example skincare or clothing. Then, the dropshipper will look for a supplier or supplier who sells the product.
This process usually takes quite a long time. This is because dropshippers must ensure that suppliers have good product and service quality.
2. Sellers create online stores or social media accounts to market products
If you have found a supplier who sells the product as you want, the dropshipper will start promoting the product.
There are many ways you can do it for promotion. But usually, dropshippers create online stores on e-commerce sites or social media.
The more intense the promotional efforts you do, the greater the chance to attract the attention of target customers.
3. Seller offers products to buyers
The next way a dropshipper works is to offer products to buyers. In this situation, there may be potential customers who are interested in your product, but are still hesitant to buy it.
Well, working as a dropshipper means that you have to be brave to encourage customers to make purchases. If they ask, give the answer as clearly and quickly as possible.
With good service, potential customers will be more interested in buying your products.
4. When the buyer places an order, the seller forwards the order to the supplier
When your promotion is successful, potential customers will also order the product. Make sure you provide a variety of ordering channels to make it easier for buyers, whether it’s through WhatsApp, online stores on e-commerce sites, or Instagram.
Once the order is in, contact the supplier to ensure the availability of the requested product. If the stock is still safe, immediately ask the buyer to pay in full of their order first.
Well, when the payment is successful, you can only submit the order details to the supplier. In other words, the dropshipping payment system is done at the beginning before the product is shipped.
This is one of the advantages of how dropshippers work. You don’t need to stock the goods because the supplier will provide them.
5. Supplier sends the goods directly to the buyer
Once receiving an order from the dropshipper, the supplier will immediately package the product according to the order details.
After that, the supplier will send the ordered product to the buyer’s address by including the name of the dropshipper as the sender.
This means that shoppers will receive orders as if they came from your online store. In fact, it is the supplier who packs and sends the ordered products.
Even so, it doesn’t mean you don’t get a profit margin when you become a dropshipper. You can still pocket profits from the difference in the price of the products sold by the supplier.
So, what are the products that can be sold if you run a dropshipping business model?
Dropship Examples
Dropshipping is a fairly varied business. This means that there are many types of products that you can sell through dropshipping business opportunities.
The following is a list of dropship sample products that are quite popular and widely sought-after:
- Skincare and makeup
- Frozen food
- Gadget accessories
- Baby products
- Clothes and accessories
- Household appliances
- Cookware
- Sporting equipment and equipment
Dropship Career Opportunities
Want to know what career opportunities are like for a particular field of dropshipping products? Here are some dropshipping businesses that you can try that are certainly easy and profitable:
1. Skincare
Skincare is one of the products that is now starting to be popular or sought after by many people. This is proof of its global demand level which is always increasing from year to year.
Therefore, the skincare dropship business can target all groups, according to their age and skin type. For example, serums to prevent aging, moisturizers for teenagers, sheet masks for acne-prone faces, to facial cleansers for all skin types. You can choose skincare that is popular or viral.
2. Makeup products
In addition to skincare, makeup products also have a positive demand level from year to year.
To attract the attention of more buyers, a brand can provide a variety of color choices and types of makeup products. For example, foundation hybrid skincare, serum-infused mascara, and others.
Well, you can choose as a dropshipper for a specific brand or multi-brand. Each has its own pluses and minuses.
3. Room decoration equipment
Room decoration products, such as decorative lights, wall posters, decorative pillows, and others have diverse design potential, so the profit margin can be quite promising.
So, brands can attract customers with attractive and aesthetic decoration themes. The room décor dropshipping business is promising, especially because of various age groups such as teenagers and young couples who like to decorate their rooms.
4. Baby products
There are more than 50% of parents who prioritize the quality of the products they buy for their babies. In addition, babies always need new things as they grow and develop. As a result, the demand for baby supplies dropship products will continue to exist.
So, before deciding to become a baby supplies dropshipper, you must first survey the brand and product quality. You must have data on many brands ranging from affordable to premium for the middle to upper class in order to be able to map profit margins.
Conclusion
Just like any other business, dropshipping has its own pluses and minuses. However, considering how it works quite easily, you can try becoming a dropshipper to increase your income.
The experience of being a dropshipper can also hone your skills in the field of sales and digital marketing, you know. The reason is, you have to think about the concept of promotion to market the product.
So, don’t hesitate to put dropshipping experience on your resume and cover letter.
