What is Dropshipping?
The thing about Drop shipping is - You are competing with the manufacturers and distributors of the product you are working to sell. I keep getting calls from people who want me to 'promote' their drop shipping business. How they set is up is like this: They buy an e commerce website from Shopify or GoDaddy or any of the other web companies who set up websites. They find a 'niche' to fill with products. (a 'Niche' is a specialized area or product. Example: the cleaning industry is a 'niche' so a person can make a living only selling cleaning products. baseball card collectors are another niche. People actually open stores that only sell baseball collectors stuff). One of my clients selected 'cleaning supplies' and then further specialized in 'natural cleaning supplies'. He found a company that sold them at 'wholesale prices'. He got pictures of their products and put them on his website at a 50% mark up. (Dropshipping is this, you find the product and put the pictures on your website. When you get an order, your customer pays you the website price. You then order it from the product company, pay them and have them ship it to your customer. So If you sell it for $10 and you buy it for $5 you keep the difference and you never actually have to buy the product and store it until you get a sale...good deal..right????) My client got no customers for 2 months. Then he hired me. I worked up a marketing campaign and he advertised the HECK out of his site. He even went to visit companies and gave them his brochure and sales pitch and everything. What happened? Well, the company he is getting his supplies from - ALSO sells to hundreds of other companies...and is on the internet. So when people see THIS cleaning supply on his website at $10.00 they can also do a fast web search and find the exact same thing at different websites for more and LESS. As a matter of fact the company he was buying from for $5.00 was selling the same thing on their website...for $5.00...and at a 10% discount for a case. the same product was on Amazon for $3.79 and Walmart for $3.83. He couldn't drop his price below $5.00 unless he invested in actually buying 3 cases or more and storing them. So, please, please...BEFORE you decide to start a dropshipping business...read this again and then go tot he Your Harmonic Resonance Site and read more about scams involving dropshipping.
Selling a product that you don't have to store. The wholesaler stores the product and then ships the product directly to your customers. No. You won't make any money if you try doing it.
Drop shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer.
I sell fidget spinners. You order 10,000 from me. I order them from the factory and they ship them directly to you. They dropship.
It is an automatic clickbutton shipping system.
You buy something from me, I buy it from someone else but that party sends it to you and I just collect the difference.