Many people are looking for an extra revenue stream, and some are looking for a way to start up a small business and become their own boss. Either way, they are being drawn to dropshipping. Dropshipping has become a hugely popular way to make money, either casually or as a full-time occupation. But what is it exactly, and how to make money dropshipping? Here is a quick guide to this mysterious new side hustle.
What Is Dropshipping?
If you have been scrolling through social media or reading business blogs, you will have heard about dropshipping. It is a hugely popular way of making a little extra money, and many people have grown their dropshipping side hustle into a full-time job, but what is it exactly?
Dropshipping is a way of selling products online without ever holding any inventory. You can sell thousands of dollars worth of products online a day, or in an hour, and never have to pack a box. The seller purchases products from a manufacturer or wholesaler, and they either send the product when it is sold or send it to a dropshipping warehouse until it is sold.
You can source products internationally too. It is actually recommended you do if you want to make the most money from dropshipping. You can take advantage of low prices from manufacturers in China and sell the products to domestic customers.
Doing this does come with some hurdles to clear. Communication with suppliers can be difficult at times, and the language barrier causes problems and misunderstandings. Thankfully, you can have Chinese translation done quickly, even for complicated documents like supply contracts and invoices.
Rosetta Translation has been supporting businesses with their translation services for decades. They have experts in Chinese translation that can quickly translate the terms of a contract or a chain of emails between different suppliers and Chinese contacts.
Why Is Dropshipping So Popular?
There are lots of reasons for this. The potential profits are obviously a big reason, with hard-working dropshippers able to generate six-figure profits over a year.
One of the biggest reasons is convenience. All you really need is a smartphone, though preferably a laptop, and you are in business. There is no big initial investment except for the products you will sell. There are no overheads, and you don’t need an office. You have a potential business in the palm of your hand right now, all it takes is a little time and a little money.
The pandemic has also played a part in the rise of dropshipping. Many people were out of work and looking for new ways to make some money. The low cost of starting up a dropshipping business made it a popular choice for people during the Covid-19 lockdowns, especially the young and tech-savvy.
How To Make Money Dropshipping
The key to being a successful dropshipper is choosing the right products to sell online. You can aim for a niche in the market, such as computer components or kitchen equipment, or you can follow trends.
A common dropshipper technique is to use eCommerce tools to identify popular products on sites like Amazon or eBay. By sourcing similar or identical products from wholesalers or manufacturers, they will undercut the competition. Most buyers will choose the cheaper option if the two products are identical or remarkably similar.
The profits on each individual sale may only be small, but by selling hundreds or even thousands of a product you can generate large sums of money quickly. By keeping up with trends, negotiating low-cost deals with suppliers, and marketing their service online, dropshippers can make consistent profits.
For a successful dropshipping business, you need to market your service. This can be easily outsourced to digital marketing companies that help find new customers and generate sales. Marketing is one of the few operational costs of dropshipping.
How Do I Start Dropshipping?
The first thing you need to do is commit to the idea. It takes a lot of commitment, time, and research to get started but the profits will start to roll in quickly. The most important thing is to research the market and use that information to help form your dropshipping business idea and which products to sell.
You will need an eCommerce website as an online presence for your business. You can sell through websites like Amazon and eBay, and these may be the source of the majority of your sales, but customers will often look for an official website and see one as a sign of authenticity and reliability.
You can also sell products through your own website using eCommerce services like Shopify or Wix. With the products and platform, all you need is the customers and you will be on your way to becoming a dropshipping magnate.
Though it takes time and practice, it is easy to see why dropshipping has become so popular. You can start a small business from your smartphone and build an income large enough to support your family. It is certainly not easy, but anyone can do it.