The term drop shipping has become very popular and has become one of the most important types of business on the Internet.
Many have achieved great successes through it, especially in the Arab countries.
What is dropshipping?
The literal Arabic translation of “dropshipping” means dropping the shipping process.
As for drop shipping, in the term, It refers to a type of business that is done on the Internet and belongs to the world of e-commerce.
And in drop shipping, the online store does not keep an inventory.
But as soon as the buyer orders to buy one of the products offered in the store, the store makes a purchase order from a third party (wholesaler, another large store, or factory) that ensures that the product is shipped directly to the buyer.
Thus, the online store in the case of dropshipping is just an intermediary between the customer (the buyer) and the wholesaler or factory.
The profit here is the difference between the sale price and the purchase price.
Here is an image explaining the idea of shipping in a simple way:
Features of dropshipping :
We do not mean to talk about the defects or the advantages directly.
But we mean the characteristics that determine the form and nature of this type of work, which will help you to know the advantages and understand the obstacles that may face your business in dropshipping.
And here are some:
First; Does starting a business in dropshipping require owning an online store?
Simply; No…
You don’t necessarily have to own an online store to start working in dropshipping.
Many marketers use popular online stores as alternative platforms to display their products.
For example, you can use the eBay store to display products from AliExpress in a drop-shipping way, and when an eBay visitor views your product and makes a purchase order, you place an order from Ali Express to bring the product to the buyer’s address.
You can also use social media as a platform to display products.
Second; In dropshipping, your online store is just an intermediary:
Your online dropshipping store will not play a fundamental role in the trade process, and it will only be an intermediary in it.
The three main pillars of trade are:
- The factory that conducts the production process.
- A wholesaler who buys from factories sells to retail stores.
- The retailer sells directly to the consumer (this represents most types of online stores on the Internet in general).
With your business in drop shipping, your online store will be just a channel that connects the consumer to the merchant or factory that provides the drop shipping service.
Third; Drop shipping does not need large capital:
As a dropshipping store owner, you will purchase from a wholesaler after you receive an order from a consumer.
Here, you do not have to keep any stocks, and this will not make you need a large capital to start.
But this does not mean that there are expenses for creating the online store, and marketing expenses that you should not take into account.
Fourth; Drop shipping is a process completely hidden from the buyer:
Your own store is the interface that the buyer will deal with, and it is assumed that the product reaches the buyer and has the name and logo of your store on the cover.
The dropshipping buyer will not know anything about the wholesaler who owns the product.
For him, the sale is done through your store, which no one else knows.
And if you encounter any problem, he will revert to you to solve it.
Fifth; In dropshipping, there are multiple sources of products:
In drop shipping, you do not necessarily have to rely on one source for products, but you can display thousands of them from completely different sources.
This is a very important feature.
Diversity in products attracts more buyers and increases sales.
But on the other hand; The diversity of product sources can be a cause of buyer discomfort.
For example:
In the event that the buyer buys two products at the same time, but from two different sources, this will make him logically expect them to arrive at the same time, because it is assumed that they are from your store directly. As a drop shipping store owner, you should expect this and prepare for it.
Sixth and finally; the process of trade in the dropshipping is very easy and fast:
The simple idea behind dropshipping allows anyone with some simple skills to enter the world of e-commerce.
This is an advantage for you, and an advantage for all of your competitors as well.
It also leads to a significant increase in the level of competition in drop shipping, which implies the inevitability of reducing the profit margin to obtain good sales.
What do I need to start in dropshipping?
Success in dropshipping is based on many elements and contains many details.
Here are four basic things that are necessary to start working with drop shipping, which are:
First; building an online store :
There are a lot of solutions and options available for creating an online store.
They differ among themselves according to cost and ease, but many of them can be relied upon to create an online store for the purpose of drop shipping, which are:
(Programming companies – WordPress and WooCommerce plugin – specialized platforms).
You can also visit the Xcart website and learn about the services it provides in the field of creating professional online stores, which were reached by the efforts of the best experts and specialists in the field of creating stores and websites, in line with the needs of different customers.
You can also contact us via the following link:
https://xcart.ae/#About
Second; Contracting with a dropshipping wholesalers supplier:
It is a very sensitive and important point.
There are a lot of suppliers who work in the way of drop shipping (wholesalers, supermarkets, or factories).
Here, you have to carefully define your choices according to your own circumstances, including:
- The target market (the country in which you want to sell your products).
- Does the supplier allow products to be shipped to these markets or not?
- The nature of the products you want to sell.
- The prices offered by the suppliers and their suitability with you.
Here are the most important sites that provide drop shipping for stores:
- Aliexpress
- Tinydeal
- Dropship direct
- Tmart
Third; Setting the method of payment for buyers and suppliers:
When working in the dropshipping business, you have to set the method of payment for buyers from your store.
You also need to determine the method by which you will pay suppliers.
At this point, there are a lot of options, the most important of which is PayPal, which is an acceptable payment method for most suppliers, and you can easily set it on your online store to be a way to receive money from buyers.
Fourth; Create a marketing plan and build a brand for your store:
Your success in dropshipping depends largely on your success in marketing your store to potential buyers.
This includes advertising campaigns on social media and on Google Ads.
It must be noted here that marketing starts from setting prices, and carefully targeting the most appropriate market.
Conclusion :
Dropshipping is a somewhat new field in e-commerce, and it represents a great opportunity for everyone seeking to create their online store without going into the complexities and costs of owning a traditional store.
After a year of missed opportunities caused by the COVID-19 pandemic, there is no doubt that this is the best time to do business and enter the field of drop shipping and advanced e-commerce.
The most important sources and training courses for learning drop shipping:
For everyone who really wants to start learning dropshipping in a thoughtful manner and with deep knowledge, here is a list of the most important sources and training courses that you can benefit from: