Dropshipping is one of the biggest trends in the last five years, especially with the current financial crisis. Many people are struggling to pay their bills or when they do, they don’t have any expenditures at the end of the month.
Dropshipping is an ecommerce business, mainly using the platform Shopify. It is a method where you commission the suppliers to deliver products to a customer’s doorstep. Yes, you don’t necessarily need to see the product yourself. You also don’t need to keep an eye on stock or your inventory which makes things a lot easier. Nonetheless, it can be a great way to earn an additional income and, if you are successful enough, you can do this as a full-time job.
In this article, we will cover everything you want/need to know about dropshipping. That includes how it works, the best dropshipping platforms, the profit you make, whether you can lose money, whether it is easy and how much time it will take you. Let’s get started.
How Does It Work?
Dropshipping is simple once you know how. It is a method that is practically done for you already. All you need to do is create a storefront of the products you wish to sell. Once you have your platform, people will begin to start ordering products. Once an order is made, you then contact the supplier or software can do this for you. Once you have contacted the supplier, they pack the product and deliver it to the customer.
Different Dropshipping Platforms?
Dropshipping is performed on numerous platforms with hundreds, if not thousands of different products. You can start your store for any product which is in demand, literally anything. As long as there are customers out there who want the product, you can sell the product.
Once you decide on the product, you can start shopping around for your platform. There are many to choose from but here are the most common.
One of the most popular platforms because of the number of products which are available that you can sell. Furthermore, it is simple to use and they are very affordable.
DSers For Shopify Users
It is another great platform and integrates with Shopify, not to mention it has over 20,000 products to choose from. Some people suggest using Oberlo instead however it is shutting down which is why DSers is the better choice.
Modalyst is another platform designed for Wix users. It is a platform that has over 350,000 businesses. It is a common choice although it is not as popular as Spotify and AliExpress.
Many dropshippers will use platforms such as Amazon and Ebay for their business however you must follow specific rules on their platform which is why many don’t use these platforms.
Do Droshippers Make Money?
Yes, dropshippers make money but many don’t as well. It can produce a lot of profit if you are successful and isn’t time-consuming. Nonetheless, it is a highly competitive market so it can be difficult to be successful. Furthermore, Shopify has said that only 10-20% of dropshipping businesses succeed. If you wish to be successful in this, you need to be willing to commit the time and effort to compete with your competitors.
It takes a good eye to recognise the demand as well as promote it. All you need to worry about is whether the supplier will cope with the mass amount of orders.
The problem with people who want to dropship is they think it will return quickly and this is not always the case. It is why many people fail because they don’t stay persistent with it.
What Are The Profit Margins?
It is believed that the average dropshipper earns around £2000 a month in the UK. Moreover, there is no limit to how much you earn with dropshipping. Some people have managed to make millions in their first year of dropshipping.
The niche that you choose depends on how much you make. If you choose a product that is in demand, you will make a lot of money however, you also need to look at your competition. If there are a lot of people selling your product, you may want to consider another product.
It is believed that around 18.5% of dropshippers sell technology as it is one of the most profitable. Although it is one of the most competitive as well. Furthermore, if you are selling a product worth a lot of money, you won’t have to sell as many.
Can You Lose Money When Dropshipping?
You can lose money with anything you lack knowledge on. That is why it is essential to do your research on this. Once you start researching what is in demand and what your competitors are selling the product you have a better chance than those who have done 0 research. The biggest mistake is that many dropshippers are not choosing the right niche.
Can You Succeed At Dropshipping?
Yes, you can easily succeed with dropshipping although you can fail as well. If you are willing to sacrifice time and effort into a niche you know is in demand, you will profit from it, especially if you put in more time than your competitors. Furthermore, many people believe that dropshipping is a passive income when this is not the case. It requires effort for you to be successful.
How Long Will Dropshipping Take To Make Your Money?
Dropshipping isn’t something that happens overnight and in fact, can take a lot longer than you think. For some people, it can happen in a day or a night but for others, it can take up to a year. It all depends on how much time you want to put in initially as well as after your initial sales.
Again, demand comes into how long it will take for you to be successful. For example, if you know there is little competition and many people want your product, it might take off quickly. If you choose a market that is highly competitive such as men’s designer overshirts then it will be unlikely you will be successful.
Once the money starts rolling in, you can slowly increase your budget for your dropshipping business. You can then use the remaining money for general expenditure or put it into your savings account. We suggest you don’t rely on your profit margins too much as the e-commerce market can be inconsistent and depends on what is happening in the real world. Again, you want to pick a product you know you can expand with the profit.
Dropshipping seems to be a modern solution to the financial struggles that many people are facing in 2022. The problem is that people believe it is a quick solution to their financial struggle and something which will return imminently when that is not the case. You must understand you may not even profit for the first six months of your dropshipping business.