WHAT IS DROPSHIPPING? A GOLDEN SOLUTION FOR BUSINESSES WITH LITTLE CAPITAL

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1, What is Dropshipping?

Dropship or Dropshipping is a form of sales in which stores do not need to keep the products sold (warehouse) and ship them to buyers. Instead, these two tasks will be assigned to a third party, a manufacturer or other supplier.

A specific example of this model is as follows:

You are an e-commerce shop owner, you are selling a men's watch for 500,000 VND.

When a customer orders and pays for your watch for 500,000 VND, you will transfer this order to a third party, the manufacturer or supplier of this men's watch product, and pay them the original price of 300,000 VND.

And then that third party will ship this product to the customer. And you have made a profit of 200,000 VND from this order. This is called the Dropshipping model.

2, Outstanding advantages of the Dropshipping model

You can still do business without worrying about low capital

With this Dropship model, sellers do not need too much capital but can still do business. Because, shop owners will not need to spend any capital to buy goods in advance unless you have sold the goods and the customer has paid.

When there is no need to spend money on storage, import and shipping, this will be an opportunity for you to start a successful business with little capital.

Faster delivery to buyers

Certainly, direct delivery from the supplier to the customer will be much faster and can skip unnecessary intermediate shipping steps.

No need to worry about inventory

In business, inventory is always the biggest headache for sellers, even businesses. When you import a quantity of goods to sell, but the consumption is too low, you will have to consider the problems of storage, preservation, and clearance...

And certainly, you will spend a lot of money on that inventory. But with the Dropshipping model, you will not have to worry about this problem anymore.

Flexible business location, even no need

Not needing to import and store goods helps sellers save costs to design or rent a warehouse. Even,

you can be a student, an office worker or anyone and your job is to have a computer to sell, you can sell with this model.

Flexible business model

You can work anywhere, any time you want

3, Disadvantages of Dropshipping

You will not see the product you sell

With the Dropshipping model, sellers will not see the product they sell with their own eyes. From there, it can also lead to some risks about the actual product and the photo

The product may be defective from the supplier

Not being able to control the quality of the products you sell, and the products may be defective in the production process, will lead to negative feedback about the seller's store.

High competition rate

The fact that a seller does not need to import, store, transport goods and spend little capital but can still sell with this model, has increased the competition rate, making it difficult to expand the business.

Difficulty in responding to customers about the product

When you do not know how your product is produced, from where, it will be very difficult to respond to customer feedback.

4, What to prepare when starting a Dropshipping business model

1/ Prepare yourself mentally, a right mindset

If you think dropshipping is a game, a game, it will be difficult for you to succeed with it. Change your perception, dropshipping is a profession that creates a stable income for you, helping you not to have to sit in the office from morning to night. And if it is a profession, you must invest money, time, and a serious attitude to learn and work.

2/ Prepare capital and time

You can spend a lot of money to build your own dropshipping system. Remember, the larger the scale, the larger the amount of money you have to spend. For beginners, a capital of about $100 - $200 is enough. As for time, with different goals, the time spent by each person is also different. But in general, if you need to give a relative number, you need at least 1.5 hours/day to learn and make money with dropshipping.

3/ Determine the goal

You need to clearly define your goal before doing anything, participating in any form. Some notes when setting goals with the dropshipping model:

+ Setting goals must be based on resources, resources are what you have at the present time (such as time, capital, skills, relationships ...). If you set goals too high, you will quickly feel discouraged, and if you set goals too low, you will not be able to fully develop your abilities.

+ Goals must have short-term, medium-term and long-term.

+ When determining goals, you need to make a detailed plan about time and work to implement. Then you must make every effort to pursue that goal.

4/ Bank account, visa/mastercard

You need to prepare at least 1 bank account, visa/mastercard to be able to do dropshipping business.

Thus, with the Dropshipping model, whether you are a student, a student, an office worker who wants to wholeheartedly start a business with Dropshipping, you can develop. Hopefully, the above article will help you better understand and orient your development path as a Dropshipper.

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