In the simplest terms, the dropshipping process is a cycle of buying and selling goods. But the difference between the usual reselling is the absence of stocks.

Dropshipping process as it is

A customer makes a purchase in your store. You accept payment for the product for your retail price and shipping costs. Then you send the order to your supplier and pay for it. The seller delivers the item directly to your customer.

Now the cycle is over: the supplier takes his money, the client gets the product, and you take the money from the profit margin.

Let’s look at the process in more details. To start selling things, you need to have some platform to place your offer. So, initially dropshipping begins with making a store.

Main steps to begin dropshipping

Market analysis and choosing niche

Every business should begin with careful market analysis. To find promising niche, you’ll have to study the latest statistics and use online analytical tools.

Search of suppliers

Reliable suppliers are a must for any dropshipper. Study the seller’s information and customers’ feedback to find really trustworthy suppliers.

Launch of an online store

If you already have your own website, a blog or an account in Facebook, Instagram or other social networks, you can offer your products there. Most dropshippers prefer to make a specialized website. Online stores look more presentable and can attract lots of clients.

Promotion

Online promotion is necessary to get sales. Try to use different marketing channels: paid ads, SMM, SEO, etc.

Why it works

Dropshipping works because it is beneficial for all parts of the process.

Dropshippers can run their businesses without large investment. They can work from any place of the world – they need only Internet to stay in. They don’t have to organize warehouses, like in traditional retail trade. It minimises risk of excessive stock or lack of goods. They are not limited in the increase the range of offered products. They are free in questions of promotion. All ideas and products can be tested and evaluated very quickly. In other words, dropshipping makes them fully independent.

Customers greatly save their time and effort when looking for necessary products in the conditions of the overstocked market. They can do their shopping comfortably and enjoy overall support in the process. Besides, dropshipping webstores usually have easy and user-friendly navigation.

Suppliers can get huge sales volume and don’t have to spend their money for additional promotion.