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In this post, you will read if you can make money dropshipping. When you are looking for ways to make money online, some people will recommend business models related to eBay, Amazon, or any other big e-commerce website. There are many ways to get started on these marketplaces, and dropshipping is a popular strategy for many beginners.
The truth is that it sounds easier than many alternatives. However, I would say that it’s just different from classic e-commerce methods. So, let’s see what dropshipping is all about and if you can really make money with it.
What Is Dropshipping and How It Works?
Dropshipping is based on the idea that you do not have to ship the product you sell. But still, you have to handle the customers, manage the payments, and list the products to your store or another marketplace. The drop shipper makes the shipping. You need to find and contact the original seller, agree to ship the products for you, and then; you can sell them.
When someone buys them, you send the buyer contact details to the drop shipper, who is responsible for delivering the order. There are pros and cons to this business model.
On the pros, you do not have to invest in products that you do not know if you will be able to sell them, and of course, you do not care about the shipping process. This means that you can start for free and focus on your marketing efforts. Starting for free or a low budget is a big factor for many beginners.
On the cons, you do not control your business. When you start a business, you want to see in the long term. The worst thing that can happen is to lose your business or a part of it because of factors you can’t control.
The drop shipper can make mistakes that will harm your reputation. For example, he may do not deliver on time or has low-quality products. A few bad reviews can be a big damage to your store. Next, he may decide to stop shipping for you. If you cannot find another drop shipper with the same product, you will start from the beginning.
Lastly, if you sell on marketplaces like Amazon and eBay, you can lose your entire business overnight. It has happened many times to sellers on these sites. A simple mistake can be enough to ban and close your accounts. If that happens, all your hard work will be lost. As you can see, there are many things to consider.
Is Dropshipping For You?
Many beginners misunderstood this business model. If you expect to list some products and sit back to wait for the buyers, you will be disappointed. When you start any type of business, hard work is needed until learning some basic skills that will help you to go forward.
Ok, you do not need to buy the products before selling them, but you cannot sell low-quality products and expect someone to buy them. You need to do your research, find products that your audience wants to buy, contact with vendors you trust, get the best offers, and develop some marketing skills.
Why should someone buy from you and not directly from the original seller at a lower price? You must be better at marketing. Also, there will be competition. You are not the only seller on the internet. The opposite happens most of the time, there are too many competitors, and most of them do not earn any money at all.
Does it mean that you cannot earn money in that way?
No, most marketers on the internet just do everything wrong. They do not follow a proven system or focus on their businesses. So, you can make it work for you, but it will not be easy or fast. It will be a new business that you must learn.
To answer the question of the subheading, anyone can make money with dropshipping and build a profitable business if he understands that it takes some work and skills. You need to apply a specific system that you know it works. Some experts create videos that show them to make hundreds of dollars from the first days or weeks.
They have repeated a process that works many times and they can do that again in a new store or niche. It’s fine if it does not work for you in the beginning. As you learn the process, it will work better.
How To Get Started
Ok, I mentioned that you need to learn the process and some skills to make it work for you. But where will you learn that process?
On the internet, there are many fake gurus, scam products, and misinformation. So, you need to make sure that you learn from a legit website or people who can prove their earnings. In my opinion, the best website for dropshipping is Shopify. It’s not a free site, but you can be sure that you get the best services and guides in the industry.
There is an available free trial to create a store and decide later if you will continue. On the site, you can find many guides about dropshipping models, traffic strategies, copywriting and monetizing techniques, etc. However, you want to avoid people who ask for money on other platforms or sites to show a lesson about Shopify or other dropshipping models.
How Much Can You Earn From Dropshipping?
As a seller, when you find a product, you list it at a higher price than the original sellers. The difference is your profit. However, you cannot raise too much the price if you want people to buy from you and no from other competitors.
Most of the time, you will earn a few dollars per sale. When you start making some sales, you can scale your business to sell even more products. Scaling your business and make hundreds of sales per month is not easy. While there are sellers who make over 10k per month, the vast majority don’t go full time. Usually, they earn a side income from their work.
As an alternative to dropshipping, you can check affiliate marketing. You still do not handle any products, but you recommend products and services to other people. When they buy your recommendations, you earn commissions of up to 75%.
Also, in some affiliate programs, you earn from repetitive buyers as well. Affiliate marketing is a business that you can control because you have your own website or email list, and you can earn significantly more money.
Dropshipping is a legit business model, and there are many ways to apply it and Shopify as a good place to get started. While dropshipping is not my top recommendation to start an online business, I cannot overlook that many people earn money in this way.
Can it work for you?
Well, you will never know if you do not take action. Thanks for reading! For any questions, comments, or observations, leave your message below.