What is dropshipping? Who does dropshipping suit?
Recently the dropshipping model has risen like a new wind in the “make money online” world and is predicted to be the new business trend in the digital age. Dropshipping is a topic never ceases to be hot since Industry 4.0 came to be.
I. What are Dropshipping and Dropshipper?
Dropshipping can be understood as “Sales without worrying about delivery”. This is a streamlined form of retail business wherein the seller accepts customer orders but does not keep goods sold in stock.
When the customer purchases the goods, you – as the seller – will purchase the item from the supplier and have it shipped to the customer. As a result, you don’t have to handle the goods but only need to focus on marketing the goods you want to sell, monitoring the order, and performing customer support.
As such, the profit you gain is the difference between an item’s wholesale and retail price, less any pertinent selling, merchant, or shipping fees accruing to them.
The person who monitors the process is called Dropshipper.
A more straightforward explanation would be: The seller purchases the item at a lower price and sells it at a higher price. Therefore, the profit you gained is the difference between the two prices. However, the difference’s size depends on the type of product and other subjective elements.
It is possible for your profit to reach up to a few hundred % if you can find an economical supplier and sell easy-to-profit products. Typically, the average profit ranges from 30-60%. You should follow up on Nhat Tin’s delivery services to maximize your Dropshipping profit.
II. Why is Dropshipping becoming a trend?
Easy to operate: The operation of the dropshipping model only has 3 main activities:
- Finding a supplier
- Creating your website
- Marketing your products
Less capital is required
When performing the dropshipping model, the main cost that you need to pay is the website domain fee and marketing fee. Otherwise, other expenses relating to retail operations, stock inventory and management are entirely unrelated to you.
Less risk involved:
Because you’re not committed to selling-through any inventory purchased upfront, like in a traditional retail business, there’s less risk involved in starting a dropshipping store. Should you be unable to sell the product, you don’t have to pay for inventory management. Moreover, if you want to exchange the business item or stop selling, you wouldn’t suffer heavy losses due to large inventory stock.
Flexible location:
A dropshipping business can 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 without the need for a fixed office, warehouse or any employees.
Wide selections of products to sell:
Since you don’t have to pre-purchase the items you sell, you can experiment with any product type. Moreover, you can also become a wholesale drop-off place with an array of products at different prices, or you can sell retail on the website. In those cases, the diversification of products also empowers customers’ purchasing power because they now have more choices.
For example:
The distributor sells the product in the Vietnamese market; should you want to sell that product, you need to partner with them for discounted prices. This will require large capital for negotiation because, in order to become an agent or partner, you need to pay the upfront investment.
However, for the Dropshipping model, you can buy the product at a lower cost and sell it at a higher price for profit. In order to achieve that, you need to choose an unexplored territory that previously hasn’t provided the product, or the product in the market is too expensive so you can enter the market.
You should negotiate with domestic suppliers and sell the products to foreign customers. That’s how Dropshipping exists; it exists based on the difference in currency, in geography, between cities and countrysides.
III. What is the Amazon Dropshipping experience?
This accumulated knowledge after a long time working with Amazon’s system will hopefully help you entering the Dropshipping model:
- You don’t need large capital for a start-up; you only need 200.000VND in your bank account to start the dropshipping international journey with Amazon.
- No longer need to hold stock or self-produced products; you can sell other people’s products.
- Ignoring the delivery process, the seller only needs to order from the supplier, and they will deliver for you to your customers.
- All you need is basic English skills, though being fluent in English is also an advantage as you can read more on foreign forums. While Amazon Dropshipping job is a filtered copy-paste from the source website
Who does Dropshipping suit?
Regarding this question, the answer will be subjective to each person. However, it can be said that it is suitable for everyone. The important thing is whether you want to try it or not. If you are not completely sure about your abilities, consider dropship as a side job for extra income.
Though Nhat Tin believes that once you are familiar with how dropshipping works and determine with the job, it can be your main job. Besides that, it can provide you with a stable income for yourself and your family.
If you belong to these groups below, then perhaps dropshipping can be your best source of income:
- Group 1: Office workers
The first target audience is no one else but office workers themselves. If you have spare time from 2 to 3 hours a day, then don’t waste it; use it to utilize your full abilities and gain an extra income source with dropshipping.
If you feel that dropshipping is meant to be in the future, then don’t be hesitant to spend more time and effort on it. Your income could very well reach up to $200 to $300 a month, which would make your life much easier.
- Group 2: Students
This group has the largest advantage for time and their adaptability to how things operate and technological advancement. Moreover, suppose you are currently researching a market or a product. In that case, this will be your best opportunity to gain practical experience.
Are you worrying about lacking capital? Then don’t. Just try because this model is suitable for people with low capital to start-up. What you need to spend is not money but time, time to gain knowledge and time to experience. You won’t regret spending time dropshipping instead of watching movies or gaming. Not only can you learn new things, but you can also achieve financial freedom and unburdening your family.
- Group 3: Newcomers to online business
It’s clear for newcomers that you don’t have sufficient experience or knowledge for the real world. Online business not only requires knowledge about marketing, but you also need to possess market analysis skills, product sourcing, shipping and countless other practical experiences.
But rest assured, Dropshipping will be your bread and butter for you to study and learn with the least risk on the online business market. In the future, when you have full confidence, then entering more complex markets wouldn’t be too much of a hassle.
V. Which company provides the delivery?
Any shipping companies, couriers, and logistics companies will take on that role, receive bills of lading information from the suppliers, then the system will automatically update; you just need to control your order via App or support tools.
Currently, Nhat Tin Logistics also deployed delivery services and shipping to 63 provinces nationwide. These services include Premium express delivery, Express delivery, Mixed express delivery, Road transportation, International delivery, etc., with speedy delivery time and appropriate fee rate. Nhat Tin Logistics always focuses on service quality to ensure customers have the best experience.
For more information regarding delivery services, customers can use the Hotline 1900 63 6688 or come to the post office to be accurately and quickly consulted.