Dropshipping is one of the most popular online selling methods today. I tested this system for a while and saw its potential. Indeed, it is possible to earn a lot of money with this system. I had to end the job because I didn’t have time. Now, I wanted to prepare a guide for those who want to start this business. In this content, I will try to share with you all the information about where to start, what to do or not to do, and all the information about the system based on my own experience.
Table of Contents
Dropshipping meaning
Dropshipping can be defined as the sale that the seller makes with a commission, without having to keep any stock. In this system, the dropshipping person does not keep stock. It sells products by listing it on an e-commerce site, its own social media accounts or virtual marketplaces. Seller sends the buyer information and address to the supplier when the products are sold. Instead of the seller, the supplier ships the product and sends it to the buyer. The process continues like this.
How does dropshipping work?
The operation of dropship business is as follows.
- First of all, an agreement is made with a good supplier.
- Products supplied by the supplier are listed on e-commerce sites, social media accounts or virtual marketplaces.
- When products are sold, buyer information is given to the supplier.
- The supplier ships the product purchased by the buyer to the buyer’s address.
- Thus, the seller does not deal with transactions such as cargo and invoices.
How to start dropshipping?
Before starting this business, you need to do a good research. The system has advantages as well as disadvantages. Generally, those who want to start this business see the positive sides of the system. Those who sell Dropshipping training on Udemy or similar platforms often talk about the advantages of the system. No one talks about the negative sides. As someone who does this job, I will share the advantages and disadvantages below, item by item. If you want to start selling with the Dropshipping system, you need to follow these steps. So How to dropship? Here are answers:
- The most important factor in this business is the supplier. Your supplier should sell quality products, send orders on time, not victimize your customers, and most importantly, have a sustainable and supply system. Otherwise, the work will not work very well and you may have to terminate it while you are at the beginning of the work. Therefore, the first step is to find a good supplier.
- Perform competitor and price analysis: There are many suppliers offering dropshipping services, but are their prices competitive or high? You need to research this well. For this reason, you should search for information such as the number of sales, performance, sales prices of the products you want to sell, from e-commerce sites. When researching, be sure to include expense items such as shipping charges, taxes, and commissions in your purchase price.
- Determine your sales channel: Determine the platform on which you will sell. In the first place, I recommend that you start selling by opening a store, especially on Instagram. Then you can open your own E-commerce site. If your business goes well, you can start selling by opening a store in virtual marketplaces. Since the competition is high in virtual marketplaces such as Amazon and Aliexpress, I recommend that you do not open a store in the first place.
- Quickly create your orders/Quickly answer customer questions: After-sales is just as important as pre-sales. Therefore, forward the order to your supplier as soon as you receive it. Quickly answer questions from customers. These are very important factors for customer satisfaction and returns.
Dropshipping advantages
The system gives you many advantages. Here are the main advantages of the system;
- You don’t have to keep stock and track: In this system, the stock is kept by the supplier. You don’t have to keep track of stock. This gives you additional time and makes you more interested in your customers.
- The supplier does the shipping: When the order arrives, it will be sufficient to send it to the supplier. All processes such as packaging and shipping are carried out by the supplier. This gives you a great time advantage.
- You do not need a start-up capital: One of the most important advantages of this system is that it requires capital. You can start this business with zero capital.
- Product variety is high: Since you can find suppliers in every category, you have more product options. You can sell in any category you want.
- You do not have to rent a warehouse / workplace: Since the stock of the products is kept by the supplier, you do not have to rent a warehouse or workplace. You can work from home. This gives you a great advantage in terms of cost.
- You can sell not only in your own country but also globally: You can also sell globally with the system. For example, you live in America. However, if you wish, you can also sell from Amazon in the UK by agreeing with suppliers in the UK.
Dropshipping disadvantages
The system has many advantages as well as disadvantages. I suggest you start by knowing these and doing good research. Here are the prominent negative sides of the Dropshipping system;
- Profit rate is not very high.
- Stock tracking is not possible:The system is not under your control, as stock keeping and follow-up processes are done by the supplier. There may be supply problems for products that are out of stock and are reported to you late. This may cause the product to arrive late or not reach the buyer at all.
- Difficulty in quality control: Since the product is sent directly by the supplier, the care shown in product quality and packaging cannot be controlled by you. This can cause negative feedback.
- Problems may arise in shipping and transportation: Since shipping is done by the dropship suppliers, it can sometimes be delayed. This may cause the product to reach the buyer late and therefore cause negative comments about your brand. I think one of the most negative aspects of this system is that the delivery time of the order is not under your control.
Best dropshipping products
I recommend you to start with the first and trending products. The best items to dropship are below.
- Practical household appliances: You can sell practical and trendy products especially used in the kitchen.
- Pet supplies: Pet supplies are among the best selling products of E-commerce. Especially newly released care products, toys and food containers are among the most preferred ones.
- Phone accessories: Competition in this area is higher than the first two areas, but it is the category with the most sales. You can sell accessories, cases and glass protectors of a certain brand.
- Car accessories: The best selling products in the car category are accessories. Mats, phone holders, auto covers, car tents, ice and anti-slip products are the best-selling products in this category.
- Smart watches: It is among the best-selling products in the technology category. You can also sell with price performance products. I think you can sell well in the Dropshipping system with quality smart watches.
- Fitness equipment: Especially with the pandemic, people prefer to do sports at home instead of the gym. Sports equipment is among the products with high sales potential in e-commerce.
- Anti-aging care products: The most sold products in the category of personal care products are anti-aging products. Collagen-containing products, anti-aging creams, anti-wrinkle creams are among the best-selling products in this category.
- Drones: Interest in drones is increasing day by day. This creates a serious sales potential. You can start selling in this category by agreeing with a good drone supplier.
Is dropshipping legal?
Dropshipping is a legal method of selling. But you have to do this officially. You need to open a company, start a tax , and prepare invoices for the products you sell. When you do not officially do it, you may have problems with the Tax Office of the country where you are Dropshipping when you do not issue an invoice.
