What is Dropshipping and How Can You Earn Money? Part 1

What is dropshipping? With the development of Internet, more and more people begin to use the services of Internet-shops. To buy clothes, cosmetics, toys, and other equipment on the Internet is much more convenient, cheaper and easier. And it saves a lot of time. Although, of course, there are many online shoppers who hold on to the pages of the online stores do not less time than previously spent in shopping malls. This is all very good. And that’s just fine for all those who dream about their own Internet business.

Start your own online store is the dream of many online entrepreneurs. In addition, online trading want to have and those who have considerable experience in real sales. That’s just most of them face the same problem. Create and run your own online store – can cost not much cheaper than running a conventional brick and mortar store. Yes, you do not need premises to trade. But you need a lot more. And space is also often needed. At least for the storage of goods.

To better understand the difficulties faced by beginners who want to run your Internet shop, let’s look at those schemes that are these online trading platforms.

How are traditional online stores?

If we take as an example the most common – average – online store, then it works roughly as follows. First create the store’s website. Screwed different scripts for taking orders and processing payments and so on. On leased office. Hired workers. Their task is receiving and processing orders, online user support, etc. also need a warehouse that will store pre-purchased large quantities of goods. Well, we need more people that will be in the warehouse processing orders, packaging the goods, check them and send couriers or take in the mail. Again, the required delivery to the state or third party. How convenient.

That’s how much you need to work a standard online store. And that’s a very simplified scheme. The reality may be much more complicated and confusing. This is what pushes thousands of entrepreneurs from launching their store online.

And opening an online store – this is a very costly exercise. Only one rental space for office and warehouse can be very, very expensive.

There is another scheme. It is similar to the previous one, but it has the stock smaller. To the warehouse only to bring the most in-demand and popular goods. Of those that presented at the showcase of the online store. Everything else is delivered to the customer under the order. This scheme requires a little less investment. But the same is not available to every beginner online trading.

Today the market situation is changing. In the West many online stores are relatively a new trading scheme, which is called dropshipping (or direct delivery).

How the business works according to the scheme of dropshipping?

E-commerce for you personally as entrepreneurs’ primary benefit, it’s the minimal expense to begin. Stores aren’t needed by you. That you don’t have to purchase the item. Couriers are not needed by you. And so forth. You simply require something – to market.

Plan of the company program of dropshipping is really as follows (the connected visual plan for pictures).

These products are placed by you about the websites of one’s store that is online. Promote, market the shop and also these products itself. Entice clients at all available. As in the event of the conventional store that is online. Nothing fresh.