Can you make money from dropshipping

If you are looking to start dropshipping then the first thing to strike in mind is the dropshipping business profitable and can you really make money from dropshipping?.

Here we are going to discuss in detail how it is beneficial for business and free dropshipping platforms.

You may have heard about the highest-earning drop shippers and getting reports from different sources that dropshipping is growing.

Again if you keep eye on the business then how to avoid serious mistakes to harm the venture.

What is dropshipping?

Dropshipping is an online e-commerce model where you need not keep inventory this is simple dropshipping meaning.

Just to take orders through e-commerce website from customers and forward to supplier or manufacturer.

In this process, you are not involved anywhere in inventory management or shipping. Your work is like sales intermediate and makes money from dropshipping.

Your earning or profit is the difference in the amount you disclosed to the customer and your dropshipping partner charges you.

How does dropshipping works

Dropshipping involves a simple process you can see in the image below

Step1: Visitor reaches your online store and makes a purchase.

Step2: You receive a purchase order through the online store and pass it to dropshipping partner automatically or manually.

Step3: Your dropshipping partner sort outs orders and dispatch it directly to the customer.

Requirements for dropshipping business

If you are starting a dropshipping business then few basic requirements lay the foundation for business.

1.Selection of Product

This is the first requirement so you must choose products that have good demand in the market.

The selection of the right product helps you make a reasonable profit and make money from dropshipping.

2.Choose a drop shipper

The next step is to choose a drop shipper keeping in mind your products. You can research on Google about drop shippers or take a list from vendors.

If you are taking a list from vendors then you can review it with them also so it becomes easy to analyze.

3.Building Website or Online Store

There are many methods to dropship. You can use social media, third-party platforms or you can choose both options.

But it is recommended to create an online store because you have total control over branding and you can divert traffic to your online store.

If you are creating a website then a few things are important to keep in mind.

Use a good Platform

A suitable platform is an important requirement because it determines automatic software. So that you can integrate your store.

Shopify is the most widely used e-commerce site builder. Its flexibility, feature, and adding plugin facility are more helpful to create an online store.

Cost of Platform

Another point to keep in mind is cost incurs on platform operation.

You have to bear a fixed cost every month however company like Shopify offer the first month free so that you can start easily.

Best platforms to start dropshipping

Now let us find the best dropshipping platforms or which platform is best for a dropshipping business.

Below are some well-known platforms you can analyze on different parameters.

1.WooCommerce

WooCommerce is the most used platform worldwide and it has a share of around 30%in the market.

The main reason behind its acceptance is easy to install through a plugin. Therefore it is recommendable out of the best dropshipping platforms for beginners.

You can start with just one click so it is one of the best platforms to start dropshipping.

It becomes an ideal platform for even non-technical users.

This platform is developed on WordPress which is a most favorite platform for bloggers.

Users can easily install on WordPress and start a business and make money from dropshipping.

2.Shopify

Undoubtedly Shopify is a powerful platform for dropshipping and most popular in top dropshipping platforms. Shopify powers more than 1.75 million businesses in175 countries.

All these businesses have made more than $200billion in sales this is how dropshipping works on Shopify. It depends upon you how much money can you make dropshipping on Shopify?

You can be considered as in one business platform to start, run and grow. This is a hosted platform. This is a user-friendly platform hence you can add products after Sign Up and start a business.

Shopify is a paid platform. Initially, it is free for 14 days on a trial basis. If you want more features then you can choose to advance Shopify.

3.WixeCommerce

Wix eCommerce provides advanced features and website builders to start dropshipping. It helps entrepreneurs, retailers want to move online in successful launching and scale up the business.

Wix eCommerce basic plan starts from$23/month. Its premium plan includes some extra features. like the ability to sell subscriptions, payment options in multiple currencies, and automated sales taxes.

This is easy to use, quicker to build a store, and provides creative freedom. Wix allows payment through various methods and using all major credit cards, like Visa, Master Card, Amex, etc.

4.BigCommerce

BigCommerce was established in 2009 and it is helpful to support all kinds of small or big stores for dropshipping. Its drag and drop feature makes your setup easy so no need to know to code.

BigCommerce provides 24/7 customer support. You can use BigCommerce 15days free before choosing paid plans.

5.Magento

Magento was first released in 2007. Later in 2018 adobe acquired Magento. It provides two versions open-source (free) and premium.

However, the free version has enough features to start dropshipping but you must have strong technical knowledge for website set up.

Magento has a fast speed load, smooth check out, and nice catalog but it could be a little bit complicated for beginners.

It has very good scalability so you can handle a lot of products and bundles of orders simultaneously.

Is dropshipping worth it

Dropshipping allows you an excellent entry into online business. Its start-up cost is limited and you can live a full life.

However, it has many challenges and stiff competition like other businesses because you do not have control over the product.

Many people may be selling the same product.

Advantages and Disadvantages of Dropshipping

As the dropshipping business does not require physical stock or investment so it became a popular retail fulfillment method.

It is a very common business model for many entrepreneurs but you may have many questions in mind regarding benefits and potential risks in this business.

Advantages of Dropshipping

It has many advantages for sellers using dropshipping retail fulfillment method.

Less Investment

The biggest advantage is launching an e-commerce site is cheap. On the other hand, traditional retailers invest too much in stock.

In dropshipping model, you are not going to purchase a product till the fulfillment of the customer transaction.

Easy to Start

It is easy to start for business owners because you are not going to pay anything for the warehouse. You are free to manage shipping, packaging, and inventory management.

Operate from Anywhere

Dropshipping businesses can be operated from any part of the world just to need an internet connection.

You can do it either traveling or sitting a place far away so it is not compulsory to have a physical office.

Broad range to customers

You can offer customers a wider selection because you have not to bear extra cost for it. Hence you can display as many products on an online store taking care of customers’ interest.

Disadvantages of Dropshipping

Less profit margin

Like any other business, competition is high and many merchants sell products at a very low-profit margin. Because they do not require a lot of investment to ground off business.

Running Inventory issue

As you are not doing inventory management then sometimes inventory issues can arise. It is also possible customer order item is not available in the drop shipper stock.

Shipping Complexities

You are sourcing products from another place so shipping costs may fluctuate many times.

If a customer place three different category items then it complicates your shipping cost because you have to tap three different drop shippers.

It is difficult to automate charges in such types of orders.

Can you make money by dropshipping

How much you can earn with dropshipping in fact it has no specific answer. Dropshipping business in India is growing and your earning is proportional to sales.

Dropshipping has a very thin margin compare to traditional e-commerce stores. You can expect a margin between 10-30% however it can vary from the category of products.

On the whole, your margin depends upon the level of competition and how crowded is the market?.

On the other hand, the dropshipping business has infinite scalable potential once it gets traction.

You have to focus on sales and marketing rather than delivery of products and physical inventory.

Factors affecting dropshipping earning potential

Many important factors determine how much drop shippers earn.

1.Knowledge of business

Like any other business more knowledge about business leads to more success hence this applies to dropshipping business.

However, if you are new in the business then over time you gain experience and make money from dropshipping.

Again if you are starting a dropshipping business then you have to research niche selection, store design, and advertising.

2.Learning and Experience

Learning new ideas and skills is a continuous process in every business. If someone operating dropshipping business for the last ten years then you cannot outcompete a person immediately.

However, if you come with an innovative idea then also you need to gain more knowledge so that you can apply it strategically.

Dropshipping is a good business but it can take time to develop and make money from dropshipping.

3.Scalable business

Dropshipping is a scalable business so your focus is only on sale so more you sell more to make money from dropshipping.

You are free to inventory management and shipping hence more you sale the more going to earn. Again you just need a winning product and market understanding.

4.Product Niche

Your earning depends upon product niche also. If you are starting a grocery or general store, you have to put less time and effort.

But if your store is in one product niche then earning potential will be more and it will take more time to make money from dropshipping.

5.Prevailing market Condition

Sometimes favorable market conditions boost your sale. In the last one and half years, online sales recorded bumper growth. Many people earned a lot just entered in dropshipping business.

6.Higher Competition

If you are working in a highly competitive niche then you need to work even harder to compete and survive in the business to make money from dropshipping.

Here competition affects earning, but if you establish yourself, then more to enjoy life.

7.Innovative or new product

Your earning depends upon the selection of products also. If you are working with a saturated product, you will earn less at a higher cost.

However, if you are selling a new and problem-solving product that is less saturated in the market then you can sell more at a cheaper conversion rate and earn more.

Final Words

Like other businesses earning depends upon so many factors hence you can make money with dropshipping.

Hopefully, got an answer can drop shipping make you rich? Yes, the need is to find a good product and create awareness.

If you are thinking quick money then it is not right. It can take time and effort for full-fledged earning.

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