How does dropshipping work?

How does dropshipping work?


As mentioned previously, once an agreement is in place with the supplier, dropshipping needs a few steps for completion.


1. Choosing a product to sell


Firstly, a decision regarding what products to sell needs to be made. There are many variables that should be considered before deciding on a product to sell. As such, in order to get inspiration, one can just go to a standard shopping mall or building materials market, visit an industry park and see what kind of factories are in place.


2. Locating a supplier who will dropship


Secondly, to continue, a supplier needs to be found through various networks, preferably in close proximity, or just by visiting the local trade fairs and start searching for the perfect products.


3. Setting up a web shop, a dropshipping account and organizing with the supplier


One can set up dropship accounts on several providers such as Shopify. Also, there is also the possibility of promoting one’s own web shop (even though this is the priority, it is advisable to arrange low cost web design). Then, one needs to contact the company that can supply the products, set up a reseller account and sign an agreement with them.


4. Selling and advertising on online markets (i.e. ebay web shop)


If one does all this appropriately, with the correct calculated margin, then the more leads one can generate, the higher one’s chances of finding buyers and get commissions are.


5. The Product Sells


Great news: one’s first products are sold and one’s customer pays one with a PayPal instant payment. It is highly recommended to use instant payment methods, such as PayPal or Alipay. This allows the customer to pay faster, which lets one place the order with the dropshipper faster, which gets the product to one’s customer more rapidly.


6. The Order with The Dropshipper 


After the customer has made the payment, one should contact the dropshipper immediately to order the product on one’s customer’s behalf. The dropshipper then ships the order to one’s customer under one’s name.


7. Following up after the sale


This is where many new e-business people drop the ball. Just because the customer has paid the retailer and the latter has placed the order with the dropshipper, this does not guarantee instant success. Contrarily, if there are problems with the order, the retailer is the one that will be held responsible in the eyes of customer. As such, the most favorable approach in order for the procedure to be completed without issues, the retailer needs to adopt a proactive attitude and be seen that way by his customer. One needs to follow up with one’s customer to let them know that the item has been shipped. Besides this, it is important to offer them personal contact in case of problems, it’s good to let the manufacturer handle it, and forward a personal contact information to the client, or let the manufacturer contact the client directly.

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