Drop Shipping Business Model and How It Works

Over the past years, Google Trends features the lucrative increase in online search about dropshipping. Around 22 up to 33% of online business owners have considered dropshipping as their primary business goal.

What is Dropshipping?

It is defined as a supply chain management method, wherein you as the online business owner you are considered as a retailer. In which, there’s no need on your end to keep stocks or products on-hand. Customers can buy products and the supplier will take care of the rest.

How does it work?

1. Customers will place their orders in your online shop.
2. The third-party or partnered suppliers will prepare customer’s order
3. Supplier will now deliver the product directly to your customers under your business name.

How to succeed in this line of online business?

You must find the perfect dropshipping niche based on your interest, you must be proud of promoting the products you are trying to sell, and make a profit from it. Choosing what niche is the most important part of online business, without it you are dealing with a mess up product list and misleading digital promotions.

Advance tip: Stay away from drop shipping niches that commonly used by big brands and has more other sellers. You might be exerting too much effort to outsmart all of them.

Find reliable suppliers. For aspiring solopreneurs and entrepreneurs who’d like to try their luck in dropshipping, finding a reliable supplier can either drag you down or help you succeed. Suppliers are your business partners; you should choose the one that provides fast shipping, and friendly staff to assist you in times of trouble or delay.

Keep an open communication with your customers. Practice empathetic listening when your customers are stating their problem towards the product or shipping delay. This is to show that you’re not just after the revenue, perhaps, it will lead you to enjoy repeat orders and customer loyalty.

Anyone can start an online business right away with capital money. But it takes someone who’s dedicated, smart to provide solutions and eagerness to ensure a smooth transaction.

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