What differs Dropshipping from a standart retail model is that you don't need a stock or inventory which makes thing much easier and simpler such that anybody can start their own store with minimal cost and no inventory.
Well then how does it work?
First you need and online store, you can create one from different platforms such as Shopify, Woocommerce, Magneto etc. I suggest you to start with Shopify it is so easy and also has great apps inside of it where you can enhance your store furthermore. After getting the Store You find the product you want to sell, then you need to find the supplier that has those product mostly you can find in aliexpress.com or other places there are lot of big and cheap retailers, after that import your products inside your store and start getting traffic to your store by marketing them in any social platform that are out there. When the orders comes in your store you buy from the supplier and ship to the costumer address directly, you never touch or see the product, supplier does everything for you.
How this is profitable?
You profit the margin between the price of supplier and your selling price. For example you take the product from supplier for 10$ and you sell it for 17$ so your profit will be 7$, The price that you set should be a logical price and not to high.
Advantages of Dropshipping
Easy to get started - minimal cost to start, no packing and shipping your order, managing or paying a warehouse.
Flexible location - an be run from just about anywhere with an internet connection. As long as you can communicate with suppliers and customers easily, you can run and manage your business.
Wide selection of products - Because you don't have to pre-purchase the items you sell, you can offer an array of products to your potential customers. If suppliers stock an item, you can list if for sale on your website at no additional cost. And also if one of product doesn't sell you can change with a different one at any time as long as you found the supplier.
Of course there are also some disadvantages for dropshipping such as :
Shipping times - if you work with multiple suppliers – as most drop shippers do – the products on your website will be sourced through a number of different drop shippers. This complicates your shipping costs and shipping times, but there are different methods to deal with this.
Low Margins - Sometimes in some of the products there maybe low margin profit.
If you liked or have any questions it let me now in the comments.
Cheers!
Congratulations @shqipeet! You received a personal award!
Click here to view your Board
Congratulations @shqipeet! You received a personal award!
You can view your badges on your Steem Board and compare to others on the Steem Ranking
Vote for @Steemitboard as a witness to get one more award and increased upvotes!