Dropshipping is an e-commerce business model which allows you to sell products online without holding any inventory or managing any fulfillment process. Instead, when someone places an order, the item they ordered gets shipped directly from the supplier to the customer.
This can be a great choice if you’re just starting out as an entrepreneur, or if you want to supplement your existing business with additional sales volume without taking on the additional work involved in warehousing and shipping physical goods yourself.
What is Dropshipping?
Dropshipping, also known as drop shipping, is a fulfillment method that allows store owners to sell products without having any of those items directly in their possession. The product suppliers are responsible for getting items to customers.
Dropshipping is becoming more and more popular these days as it provides opportunities for entrepreneurs to work from home and set their own hours, while still earning money.
It does involve an initial investment and can be tricky to learn about at first; however, with a bit of time and research you'll find that it's quite simple to get started.
Top 3 reasons to choose Dropshipping
1. Reduced investment costs - you need a computer, an internet connection and a PayPal account to get started. There's no need to purchase or rent a warehouse or store front as you're not storing inventory.
This way, you don't have to invest too much money into your business from day one;
2. Quick setup time - if you already have an eBay account and are familiar with eBay selling, then it will take just an hour or two to get everything set up and ready to go;
3. High profit margins - with dropshipping, it's possible to earn up to 80% profit margins when compared to traditional retail stores that generally average aro£25!
The Pros and Cons of Dropshipping
Dropshipping is an inexpensive way to start your own business because you don’t have to spend money on inventory.
Because many shoppers want a human touch, however, you may find that working with customers can take up more time than expected.
If you do choose to become a dropshipper, make sure you select a supplier with a good reputation and competitive pricing so that your products are competitive in price and quality.
Also consider whether or not inventory will be all you’ll be responsible for, or if shipping and customer service will also fall under your umbrella.
Setting up your first Shopify store
Don’t worry about being super-technical. Shopify makes it easy to get your store up and running. Simply choose a template, enter some info, and you’re ready to go!
You can also hire freelancers on sites like Upwork and Freelancer if you need help.
For example, if you want to import products from overseas but don’t have time to figure out shipping rates or set up merchant accounts, you can find people who will do that for a fee.
Platforms to use while starting
It’s no secret that Amazon is one of, if not, THE largest marketplace online. By leveraging their presence to your advantage and creating a shop through their platform, you will gain access to many potential buyers, and you can set up new products and product lines as your business grows.
This is a great way to try out drop shipping without worrying about finding customers yourself right away. Other platforms to consider include Etsy and Shopify; check out our guide on starting a dropshipping business for more information on platforms to consider while starting your business.
Tools you will need
Spocket easy Dropship. When looking for tools to help you get started with dropshipping, you need something that is going to make it as easy as possible.
You will have to: set up your Shopify store, and then create an account on LinkTree to provide yourself with relevant products from AliExpress.
To get started you will have to enter all of your details like shipping address and tax code into LinkTree, choose which currency you want (so prices are converted correctly) as well as whether or not VAT is included in that price or added at checkout.
And finally add everything onto your EasyDropship dashboard where they can easily be imported into Amazon by clicking one button.
What to sell?
The first step to starting a successful business on a shoestring budget is figuring out what you should sell. To help, we’ve outlined eight different product categories to consider when getting started with dropshipping.
Once you decide which one you want to tackle, make sure that you take some time to research your industry—spend time on websites like Reddit and Quora, read up on past experiences of other shop owners and connect with others in your niche online.
While it may not seem like much now, building relationships before opening for business will save you loads of headaches later on!
Outsourcing products photography
Do you have a steady stream of products you want to sell but aren’t sure what you should do with them? If so, one option is to hire someone to photograph your product.
This involves far less risk than setting up an e-commerce site and has a low barrier to entry. There are plenty of suppliers out there who will help you do all of your photography for less than £10 per image!
To learn more about outsourcing product photography, check out our post on starting a dropshipping business .
Finding suppliers for your products
How to start dropshipping in Britain is similar to many of its counterparts around Europe, with there being plenty of options available for finding suppliers.
Whether you’re looking for brand-name products or need a specific component that you can sell wholesale on to clients, there are different sites to help you out:
Alibaba, Snapdeal and Farfetch all feature pre-existing product lines from thousands of different companies.
Be sure to check them out and see if you can find anything that could make a good profit—and it may even be easier than your local shopping centre!
How to start dropshipping in the uk - The Bottom Line
There are many ways to make money as a beginner. Getting into selling used goods on sites like eBay is just one option for anyone looking to start making money fast, but with no experience.
While you can certainly make some cash on eBay, there are better ways to work from home without experience.
Selling things you don't need is not hard, but it's also not a great way to build a business that will support your lifestyle.
If you're looking for an alternative that will let you work from home and earn real money, look at starting your own dropshipping business online or opening an online consignment store.
These are two great options that have low startup costs and can potentially turn into profitable businesses.