One of the most asked questions from our readers is – How to make money with dropshipping? Well, dropshipping is a win-win for both the dropshipper and drop-shipping service providers.
Did you know you could make $100,000 per year with a drop-shipping store? All you need to do is choose the right supplier and build a valuable brand out of it. For those who are new to the concept of dropshipping let’s first take a look at, “what is dropshipping?”, and “how dropshipping makes money”.
Suppose you want to open an online business, but do not know where to begin or what to sell. You neither have the space nor sufficient capital to finance products? There is still a way to own an online business. We are talking about dropshipping, one of the most popular business trends of 2021.
Dropshipping is a business model where you don’t have to worry about inventory or investment. You are just selling products from someone else’s inventory on your platform and making a profit out of it.
If you are in a dropshipping business, you are working with either a distributor or a wholesaler, who offers an array of dropshipping services. Keep in mind that not all manufacturers and wholesalers offer these services, so you need to find one that does the job. For instance, online portals like Vidalxl bring great opportunities for starting a dropshipping business.
To start your business, all you need is a website and a marketing setup to advertise your products. You are responsible for just the marketing and listing products, but when it comes to fulfilling the order, the drop-shipping service provider takes over.
You place the order with the dropshipper and pay them the wholesale price. Now it is the job of the drop-shipping service provider to courier the items to your customers. They will take care of the shipping and returns without charging anything.
The product you have listed on your website can be listed at the price of your choice, but you only pay a wholesale price to your dropshipping service provider. Usually, dropshippers list their products at a 20%-30% greater value, and it all goes in their pocket.
The key to a successful dropshipping earning is setting up optimal margins. Given that you have already minimized the operational costs like inventory, couriers, and staff, it is pretty easy to set a profit margin.
Consider small margins in the beginning to attract potential customers. Besides, you will eventually have to increase the pricing to keep the business running. Ensure a smooth hike in the prices as something abrupt might hurt the business.
There are people like Irwin Dominguez who made $1M+ in less than one year. Dominguez swears by a good advertising technique. So, you too can build a successful business out of vidaXL. Just keep in mind the following tips:
Use platforms like Facebook, Pinterest, and Instagram to showcase your products. Dropshippers can start making remarkable profits within a few months.