What is Drop Shipping, How to?

Daniel Alexandra

What is dropshipping?

What is Drop Shipping? One of the best methods of doing online e-commerce is the Drop Shipping method. With the advantages it offers, you can start making money online without holding stock and without dealing with cargo. If you are looking for a guide on whats drop shipping and you are thinking of starting this business, you are definitely in the right place. In the continuation of our article, you can find the answer to the question of what does drop ship mean and get tips on how to get started.

Drop shipping

The first and simplest way for those who want to get into e-commerce is the Dropshipping method. In this E-commerce method, which is the best method for stockless trade, you do not deal with stocks, you do not deal with cargo tracking and return processes. With this method, you can take the first step for e-commerce and if you want to start e-commerce, you can gain experience with this method.

What is dropshipping?

Drop shipping definition is briefly as follows; It is a bridge system created between the buyer and the seller without the need for stocking the products. Drop ship meaning and definition are made in various ways. Definitions such as “Direct shipping”, “Stockless E-Commerce” are made.

Dropshipping Advantages

Before moving on to the answer to the question of how does drop shipping work, let’s briefly talk about the advantages of the system. The main advantages that the system will offer you are as follows;

  • It is a low cost system.
  • You do not deal with expenses such as storage, production, packaging, personnel expenses.
  • You don’t need to have a lot of capital. You can start with low capital.
  • You don’t have to have a huge team. You can manage the process with a single computer.
  • Loss risk ratio is low because capital is low.
  • You can work in different sectors and with many suppliers.
  • You can increase your product range and expand your customer base.
  • You can work from home and follow the whole process from home as you don’t have to store.
  • Your responsibility is the products you sell and their follow-up.

Dropshipping Disadvantages

Before going into details about how to do drop shipping, I would like to briefly talk about the disadvantages of the system.

  • Low profit margin is applied because you are working on commission.
  • Since online payment systems also take commission, the profit rate is kept very low.
  • The number of entrepreneurs is high and the competition rate is high.
    In this system, you compete not only with drop shipping companies, but also with other e-commerce sites.
  • To be competitive, you need to lower the product price. This lowers the profit margin.
  • If you cannot find a good supplier, it will negatively affect your seller profile.
  • The seller must contact the customer. This situation negatively affects order management.
  • It is difficult to provide technical support as the products on sale are sent by the supplier.

How to drop ship?

Before answering the question of how to drop shipping, you need to learn the advantages and disadvantages thoroughly. You need to decide whether or not to make sales in the system, taking into account your expectations from the job and your savings. If you believe you can do this job;

  • First of all, you need to research the best drop shipping companies and find the one that suits you.
  • You can do drop shipping in two different ways. First, you can open your own e-commerce site and sell on your own e-commerce site or sell in virtual marketplaces. You can sell using both methods. This allows you to reach more customers.
  • After you find and agree with the supplier companies, you can integrate the XML integration given by the company into your site. Thus, product prices, features, descriptions are automatically added to your site.
  • You can also make product listings on your website manually, but this takes some time.
  • After handling the product supply, all you need to focus on is sales. If you have knowledge about social media or google ads advertising, you can start selling immediately by advertising.
  • The products you sell are delivered to the buyer by the drop shipping company and you receive your payment.

Drop shipping suppliers

If you have decided to do drop shipping business, you should find reliable suppliers. You should do good research on the internet for best drop shipping companies. When searching for a supplier company;

  • Examine the relevant company profile on the internet.
  • See if there are any complaints about the company.
  • Request a product price list and compare it with online sales prices.
  • Find out about all the details of the company, such as shipping time, sales policy, commission rates and refund time.
  • If the conditions are right, you can agree and start selling.

Best drop shipping products

You can give priority to companies that sell the following products while researching drop ship companies. The following products are the most sold products in E-commerce;

  • Convenience food,
  • Handmade bags, jewelry,
  • Baby clothing,
  • Phone accessories,
  • Pet supplies,
  • Personal care products,
  • Souvenirs,
  • Toys,
  • Maternity wear,
  • Construction materials.
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