Are you an entrepreneur? Have you ever thought about establishing your own business and achieving financial freedom and long-term financial stability?
If you have, then you have no doubt heard of drop shipping or retail chain selling. You may have received some rumors about the fact that this type of business is easy and does not require capital at all, and you did not know whether these rumors were true or not.
OK! In today's article, we will talk in detail about Drop Shipping and touch on all aspects of it, from its definition and how it works to the best platforms that allow you to start this sales process.
What is Drop Shipping?
Dropshipping or chain retailing is a method by which you (the retailer/store owner) ships products directly from the manufacturer or wholesaler to the customer.
In this case, you do not need to have a warehouse to store and stack the products. You do not have to purchase the goods unless they are requested by the customer.
In this way, you work as an intermediary, you sell products in your shop (virtual online store), and when a purchase order is added, you send it to the Drop Shipping company to be processed and shipped to the customer.
What is the principle of the work of dropshipping?
The dropshipping system follows a simple supply chain as follows:
1- The customer places an order for a specific product from your store/business
Where your store or project can be:
- In real life, it offers samples of products or a catalog that the customer can choose from.
- By default, it will be your own e-commerce site on the Internet, ensuring that you reach a larger segment of customers.
- Available on global e-commerce marketplaces like Amazon, eBay, or others.
2- Transfer the order to the supplier or wholesaler, manually or automatically
Usually, the supplier is a manufacturer of goods or a wholesaler, which allows you to earn a good profit from the difference between the wholesale price and the price that you offer in your store to customers.
3- The supplier will ship the product directly to the customer
This is after you pay for it (the wholesale price), but in this case, your store logo will be placed on the products instead of the wholesaler's logo. Thus, the name of the provider remains completely anonymous to the customer.
Features of Drop Shipping
After you have familiarized yourself with this type of trade and its principle of operation, let's move on to talk about its most important features and advantages:
1- No need for capital
Yes, the rumor I heard about dropshipping needing no capital is absolutely true!
In fact, you only need a computer, a good internet network and contact with a wholesale company, that's it!
This is all you need to establish a successful Drop Shipping business.
2-Wide range of products
Since you don't need to have a warehouse to store the products you sell, you are free to expand the range of merchandise as you wish and choose a wide range of different products.
All you have to do is find wholesale companies willing to sell and ship goods and then add the details of those products to your site. That's it!
3- Expandability
If you are in the dropshipping business, you don't need to worry about increased demand or the need for expansion. Unlike in traditional trade.
Traditional trade faces some problems in terms of expanding or reducing activity.
If there is an increase in demand as a result of festive seasons such as holidays, you will start thinking about renting larger warehouses to store goods, and the need to increase the number of employees involved in the process of packaging and shipping products.
But this is not the case in the drop shipping trade, you can expand or reduce your activity as you wish because in all cases you order products from another provider company that takes care of everything related to shipping and packaging.
Where can I find products to start my own dropshipping business?
Below we have collected for you a list of the best dropshipping fulfillment companies, dropshipping companies, and global e-commerce marketplaces that you can contract with to buy products and then sell them in your own store.
1- Doba - Dropshipping Company
Doba is one of the most important dropshipping companies, which provides full services to sellers.
This site not only provides you with a detailed guide for wholesalers and manufacturers but also provides you with an easy-to-use platform through which to add the products you like to your store without having to go through the complexities of partnering with different suppliers and shipping companies.
Usually, you need to find at least 20 suppliers to ship the products you want to sell, but with Doba, you just have to find the products and start selling right away.
Where the site will take care of communicating with the supplier, and sending the product to the customer without any interference from you.
Advantages:
- Wide range of products and merchandise with up to 2 million products from more than 200 suppliers.
- Direct access to products.
- Organized lists of products that you can easily transfer to your favorite online store or online marketplace.
- Emails about the latest offers, discounts, and new suppliers are sent to you regularly.
Negatives:
- There are no negatives mentioned.
Prices and payment system:
Doba offers three main payment packages:
- A basic $1 per month package.
- An advanced package for $69 per month that includes a transfer of data to eBay and support for sellers.
- The Pro package of $249 per month includes data transfer to Amazon, eBay, and various online stores, as well as ongoing support services over the phone.
To learn more about site pricing and sales packages, take a look at the official Doba website.
2- Oberlo - e-commerce marketplace
Oberlo is a leading online marketplace for finding and selling products on the web, specifically in your own Shopify store.
It facilitates the dropshipping process by connecting sellers with suppliers who then ship the products and send them directly to the customers.
Features:
- A modern and distinctive user interface.
- Tight integration with Shopify.
- Easy one-click import of products from AliExpress.
- The possibility of opening an account for free.
Negatives:
- It only works with Shopify stores.
- No shipment tracking, monitoring, or multi-user service for free accounts.
- Products can only be imported from AliExpress at present.
Prices and payment system:
Oberlo offers the option to sign up for a premium free account, but it's limited to just 500 products and 50 orders per month.
For paid accounts, the site offers packages worth $29.9 per month, or $79.9 per month that allow you to expand your sales and increase the number of products and orders you can receive per month.
3- Sunrise Wholesale - Wholesale Dropshipping Site
Sunrise Wholesale is a service that allows you to ship products directly to your customers.
You can choose from over 15,000 products, then export their data (including images and descriptions) to your own eBay, Amazon, or website.
Features:
- The service of processing orders (receiving, processing, and shipping) very quickly and with high accuracy.
- When you open an account on the sites, you get a Research Tool and an eBay Listing Wizard, which makes selling on eBay very easy.
- Access to the Amazon Selling interface and Research Manager tool, helping you get started with selling if you're new to the field.
Negatives:
- Restocking fees are high. You will have to pay 20% of the storage cost on all undamaged merchandise returned by customers.
- About 15,000 products are available from 7 providers, which may be a little bit for some.
Prices and payment system:
Sunrise Wholesale membership fee is about $29.9 per month or $99 per year. There is no additional charge or a minimum number of orders or products you can sell, but you will have to pay a fee of 20% of the storage cost on merchandise returned by customers.
Note: The site gives you a 7-day trial period for free, but you must in all cases register your bank account details.
4- Wholesale 2B - Wholesale Dropshipping Site
Browse the site and choose from a wide variety of different products.
When you find the products you want, display them on your website or store.
Once a specific product is purchased from your store, and you place the order on Wholesale 2B, a commission will be charged at a certain percentage, and the product will be sent directly to the customer.
Features:
- Access to one and a half million different products.
- It offers several payment packages that you can choose from, some of which are for those who want to sell on Amazon or eBay, or who own their own online stores.
- Direct connection with popular e-commerce sites like Shopify, Magento, and BigCommerce.
Negatives:
- It is not possible to contact Wholesale 2B by phone or email.
- The only way is by raising a Ticket communication request, which makes communication very slow.
- It doesn't provide much support when it comes to analyzing sales or performance, for the products you choose to sell.
Prices and payment system:
Wholesale 2B has a somewhat complicated payment system and many ready-made packages.
Here are the most important ones:
- If you want to sell through online marketplaces like Amazon or eBay, you should choose either the Amazon package or the eBay package.
- If you own your own website, choose the Wholesale 2B Dropship package.
- If you do not have a website yet, do not worry, you can choose a special package through which the website will help you build your own store.
For more details about the packages available on the website, you can visit Wholesale 2B's official website.
5- SaleHoo - Wholesale Dropshipping Site
SaleHoo's particular focus is on providing a comprehensive and detailed guide on companies you can partner with to make your dropshipping business a success.
On the site, you can find more than 8000 different companies and more than 1.6 million different products.
It is worth noting that all the companies registered on the site are reliable, verified by the SaleHoo team, and their reliability and quality are proven.
Features:
- The site has a great community and forum as well as regular blogging, which allows you to get to know Drop Shipping merchants just like you, talk to them, and share experiences with them.
- You can learn which products are likely to bring you the most profit by using the Market Research Lab service.
- The site provides a distinguished service to support and assist customers.
Negatives:
No free trial, although there is a 60-day money-back guarantee.
Prices and payment system:
The site offers one annual package at $67 per year, which is the lowest price on the market.
One annual package allows you to:
- Access to wholesalers on the SaleHoo website.
- Direct access to the Market Research Lab.
- Personal support service by e-mail.
- The possibility of refunding the registration fee within 60 days.
6- Wholesale Central - Dropshipping Company
You may not find this site very impressive compared to the previous options, but nevertheless, it is a very good tool for browsing various categories of products such as apparel, electronics, and leather goods.
Here you can find more than 630,000 products from more than 1,000 trusted wholesalers. Where you can view the details of each seller by clicking on his name on the site.
Prices and payment system:
Registration is completely free! You don't need to pay any money.
7- Megagoods - A site for dropshipping providers
Megagoods is a direct provider of merchandise and products that have greatly simplified the dropshipping model.
The site specializes in electronics, video games, and more than 45 other product categories. It includes a wide range of famous brands.
Features:
- Low cost, as the monthly subscription fee is very low.
- Fast shipping of products to customers.
Negatives:
- Limited products available compared to other sites (only around 2,000 products available).
- My view does not provide search tools on the site.
- Not connected to any e-commerce websites or online stores.
Prices and payment system:
Megagoods offers a 30-day free trial. This is followed by a monthly subscription of $14.99.
Thus, we have covered everything related to drop shipping and introduced us to the best sites from which you can get products.
Did you find in this business model what motivates you to enter the world of e-commerce?
Do you have any other questions regarding dropshipping?
If you do, feel free to write it in the comments so that we can answer it and achieve greater benefit.
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Source: emerge app
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