Starting a business is different today. Now that we are in the digital age starting and managing a business is easier and less costly than a brick-and-mortar business. The unlimited opportunities that lie within the e-commerce space are great.
One of the most affordable ways to start a business or a branded business to create a profitable future for yourself is to drop-ship. Dropshipping is basically a retail business that requires you to do less work without handling the products you sell to your customers. With a traditional retail business, you would have to purchase, handle, store and manage all inventory, which requires a lot of work and money to start, but with a dropshipping retail business, you do not buy or store inventory.
In dropshipping, you order a product from a supplier AFTER a customer pays you for the product. Then the supplier ships the product to the customer. You do not handle the product. Let me break it down even further in steps:
- You choose a product to sell (choose a product that surrounds your passion of interest);
- You find a supplier who does dropship (you can find suppliers at Alibaba, AliExpress, etc.)
- You build an online store and post that product (Shopify is the most popular platform to build an online store);
- Place the product in your online store and price the product higher than what the supplier sells it for;
- A customer orders and pays at your store;
- You then order the product from your supplier (based on an agreement with the supplier); and
- The supplier ships the item to your customer.
Even though a dropshipping business is easy to start, it still requires you to put in work, like marketing to generate sales. That will be most of your focus. And it does come with its disadvantages and advantages. Let us look at them.