What is Dropshipping: What gets you Started
Simply put, Dropshipping is a creative way of selling products produced by other people or businesses to consumers for a reasonable profit margin without you having being personally involved in the production or manufacturing of that product.
You identify a product or products people or need, you then look for a company that produces or a wholesaler, you contact them (if they have not already indicated they drop-ship) to introduce your drop ship 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
- You set your own retail price 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 bank account
- You then go to your droshipper’s website,
- Login to your membership account
- Place the order for the product ordered by your customer on your website
- Add the shipping address (where the product is to be sent) provided by your customer
- Pay the droshipper’s price + postage
- Keep the price difference (* this is your own profit margin)
- 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” without any receipt or company’s address at all.
Therefore, your customer receives the order without knowing who actually sent it. However, you will usually email a copy of the sales transaction/receipt or invoice to your customer.