What is Dropshipping: What gets you Started
Dropshipping is a creative way of selling products as follows:
- Products produced or distributed by other people to your own consumers for a reasonable profit margin without you being personally involved in the production, manufacturing, or shipping of that product to the end-user.
- You identify a product or products people or need, you then look for a company that produces or distributes them at wholesale, you contact them (if they have not already indicated that they do dropshipping), introduce your dropship idea to them, that you would like to sell their product(s) to your customer.
If they agree to collaborate with you, the following steps are followed
- You promote their product with (their} product images and detailed description (supplied by them or downloaded from their website)
- You set your own retail price (for the products) on your website
- A customer place order on your own personalized website
- Customer pays the price (usually your buying price + shipping cost + your own profit margin)
- You receive the order and payment in your (payment platform or direct to your bank) account
- You then go to your droshipper’s website,
- Log-in to your membership account
- Place the order for the product ordered by your customer (for which you have received payment earlier)
- Add the shipping address (where the product is to be sent directly by the Drpshipper) provided by your customer
- Pay the droshipper’s price + postage
- Keep the price difference (* this is your own profit margin, usually Your selling price – Dropshippers price – shipping cost = Your profit)
- End of story…
The main aim in this, is that, the main manufacturer/wholesaler remains in the background, he only ship the product directly to (any Shipping) address provided by “you” NOT including any receipt or company’s (Dropshipper’s) address at all.
Therefore, your customer receives the order without knowing who actually sent it. However, the dropship partner would have emailed you their invoice/receipt for your order. While your customer must also have had their purchase, receipt issued to them as soon as the transaction/payment is successfully completed.
If necessary, your customer should be provided with a tracking number, this will/should be provided by the person who has sent/shipped the order.