Beginner Guide: Dropship 101

Ever thought about trying out an online business idea by becoming a dropshipper but don't know where to start? Or, you are interested in trying to make money from the internet by running a dropshipping business but don't understand the concept?

No need to worry! In this article, we will explain the basic concepts of what dropshipping is and the things you need to prepare to get started on how to become a dropshipper. The steps we explain below are also quite easy for beginners to follow. Happy reading!

What is Dropship?

Dropshipping is a sales system where the dropshipper sells products from suppliers directly to buyers without having to stock the goods first. The process of packaging and shipping to customers will be carried out by the supplier, but the sender's name uses your name as a dropshipper.

What is a dropshipper? Dropshipper is a party that acts as a seller, being an intermediary for consumers and suppliers in the process of buying and selling products.

So, a dropshipping business is a business model that is run by selling a supplier's product at a higher price, but shipping it using your name.

This is how dropshipping works if you become a dropshipper:

You increase the price from the supplier.

Customers buy products from you.

You order a product from a supplier.

The supplier sends the product to the customer.

You receive the profit.

Apart from the proliferation of dropshipping, the dropshipping business has its own advantages and challenges that can be taken into consideration. Here are a few things you should know before getting into the world of drop shipping.

Advantages of Dropship

Here are the advantages of being a dropshipper:

1. Easy enough for beginners.

The first advantage of dropship is that you only need a gadget and a stable internet connection to start a dropshipping business. You do not have to follow complicated business procedures or follow the special requirements of others.

2. Low business risk

Furthermore, the advantage of being a dropshipper is that the risk that may arise is quite low. The only thing to consider is that you have to choose a trusted supplier, especially in terms of communication. Because, you must ensure the availability, conditions, time, and delivery method of the product to consumers.

3. Small business capital

You don't have to think about the cost of inventory or hiring people to manage this business. The venture capital will be much smaller than expected. The only cost you need to think about is how high you need to set a profit margin from the price determined by the supplier.

4. Many product choices.

Then, another advantage of dropshipping is that you can sell various products from many suppliers. Because you don't need to stock up on goods, you can immediately sell many types of products to consumers.

5. Flexible

Because business can be done through a laptop or cellphone, you can work anywhere. However, make sure you are always alert to communicate with suppliers and customers to ensure things related to products and delivery.

How to Become a Dropshipper and Start a Dropshipping Business

At this point, you already know what dropship is and how dropship works. Below, we will outline how to become a dropship beginner.

Here's how to become a dropshipper:

1. Choose a product for your dropshipping business.

Before you enter the world of dropshipping, the first way to become a dropshipper is that you have to know what to sell. Do not carelessly choose a product just because you want to sell it.

You also have to know first who will be your target market. Find out the common problems experienced by many customers and choose a product that can provide a solution. Thus, your product will be sought after by consumers. I recommend to become dropshipper semarang because it is much easier.

In addition, you also need to make sure whether the products offered will provide enough benefits for you and the prospects for the future are quite good.

To search for products, you can use Google trends and check whether the selected product is in the trend or not. Or, you can also do research on the best-products selling online selling that will be profitable.

2. Research and determine suppliers

After determining what kind of product you will sell, the next way to become a dropshipper is to do research and determine the right supplier.

Collect data from several suppliers first, then see the comparison in terms of credibility, trade policies, and the quality of the products offered.

Make sure the supplier is not a risk to your business. You also have to convince the supplier that you can be a great business partner. In other words, the relationship between you and the supplier must be mutually beneficial.

3. Set the selling price of the product.

Then, if you already know what products to sell and determine the supplier from which you will buy the product, now is the time to set the selling price for the product.

Do your research and find out the prices charged by competitors who sell the same product as you. Don't give the price too low because later your dropship business will be less profitable. However, do not set a price that is too high because later you will lose to competitors.

Actually, this also has to do with the supplier you choose. If you manage to find a trusted and quality supplier, the price you set isn't really a problem, as long as you can guarantee the quality of the goods and delivery from that supplier.

4. Create a website for your business

Today, with the proliferation of e-commerce businesses in various parts of the world, many consumers choose to search and do research online before buying a product. So, if you decide to start how to become a dropshipper, creating a website is a pretty crucial step.

Conclusion

Now, after knowing what dropship is and how it works, you should have a clearer picture if you want to start how to become a dropshipper.

Indeed, like any business in general, the dropshipping business also has advantages and disadvantages that you need to know. However, if you can be consistent and diligent in living it, the droship business that you run will definitely succeed.

To help you remember, below we've summarized some of the important things you've read in this article.

Here's how to become a dropshipper:

Choose products for your dropship business

Research and determine suppliers

Set product sales prices

Create a website for your

business Promote your business

Sell ​​products through the marketplace

Wish you success in running a dropship business!