Hi all!

Today I want to express my point of view about such a method of working with suppliers as dropshipping.
For all its apparent simplicity this method It has a huge number of disadvantages, which, at first glance, are not particularly striking.

To begin with, we will analyze what dropshipping is and why it is needed at all.

What is dropshipping?

Dropshipping is a method of working without your own warehouse, when you send goods directly from the supplier to the buyer, bypassing your warehouse.

On the diagram it looks like this:

The expanded scheme looks like this:

1. You receive an order from a buyer;
2. The buyer, perhaps, pays for the order (variations are possible here, because some suppliers are ready to take over the cash service);
3. You pay for the goods to the supplier;
4. Report the buyer's details to the supplier;
5. He sends the goods to the buyer;
6. The buyer is happy. The supplier is happy. You are happy too.

Ideal scheme. It would seem that…

Let's take a look at the pros and cons of dropshipping.

Having figured out what dropshipping is, let's understand what is more: pluses or minuses?
Here is my video in which I talk about the main pros and cons of dropshipping:

Dropshipping Pros

No. 1. Work completely without own warehouse.

Indeed, you are working. And as soon as you receive an order, you immediately form a request for delivery to the supplier, and he already ships it to the buyer.

Saving:
Money, since it is not necessary to redeem the goods;
Time, since the order can be immediately sent by the supplier to the buyer;
And places, since you don’t have to look for a warehouse to store goods.

No. 2. Easy expansion process.

And there is. The procedure is simple:
Connected a new supplier;
Uploaded his assortment to your site.

Again, you do not need to buy anything, as the work is carried out under the order.

№3. Minimum investment in launch

In the process of launching an online store for the purchase of goods, they sometimes occupy almost the first place. And if you use dropshipping, then you simply do not have the cost of purchasing goods.

Actually, this is where the advantages of dropshipping end ...

Cons of dropshipping

No. 1. No added value.
I have a more precise definition of what dropshipping is - This is the transportation of goods from the supplier to the buyer at the expense of the buyer.

In fact, by its presence you do not create any additional value. You don't even see the product. It’s a mystery to you what actually goes to the buyer, what quality is there, you can’t check anything at all :)

They took money from the buyer, transferred it to the supplier, he sent it to the buyer, you left yourself a pretty penny.

Yes, you earn something and earn. But I have no interest in such a business. I'll explain why a little later.

No. 2. You are responsible for what you cannot directly influence.

Here are the main disadvantages of this scheme of work.

The supplier sent the wrong one - your fault.
The supplier sent a marriage - your fault.
The supplier sent at the wrong time - your fault.
The supplier did not pack enough - your fault.
The supplier does not care if the buyer redeems / picks up the package. After all, he has already received money from you.

If you had sent the goods yourself, all this could have been avoided.

Number 3. Almost always requires 100% prepayment from the buyer.

After all, otherwise what to do if you bought an order from a supplier?

According to my statistics, up to 5% of buyers are ready to make a 100% prepayment, and then only in trusted online stores.
And if you have dropshipping from China, only a few will be ready to make an advance payment and wait a month for the package to arrive from China.

But there are exceptions when suppliers are ready to take on cash services and cash receipts from the buyer. You should check this with your chosen suppliers.

No. 4. There is no possibility of customization of the order.

And making it unique through your additional services or gifts.

Would you like to send thanks for an order? Will not work.
Want to add a gift to your order? Will not work.
Would you like to put your business card? And here, too, by.

But these are some of the best methods of growth that will not be available to you.

No. 5. It is not known what else the supplier puts in the order.

There were times when at one fine moment the supplier began to put his promotional materials to orders. Is it worth saying what it leads to?

You do not control what else is put in the order to the buyer.
You will not even be able to check whether the product is sent in the order.

Of course, you can try to order from yourself and see what really comes to the buyer.

In justification, I will say that I have not seen anything like this from large suppliers for a long time, but in practice there have been such cases.

No. 6. Your customer base is not yours at all.

If you part ways with a supplier, you never know what will happen to your customer base.

Phones, emails, names - all this is with your direct potential competitor. Especially if he does it himself. retail sales.
The entire order history of each customer is also available to your supplier.

We will not speculate with you, but simply the very fact of my client base someone else leads me to certain negative thoughts.

No. 7. Packaging restrictions.

Suppliers most often use standard packaging without any frills.

And you will not have the opportunity to additionally pack fragile goods.
Or offer, for example, gift wrapping.

As you can see, solid restrictions ...

No. 8. You won't even be able to put a gift in the order.

I have already said many times that the simplest gift in the order significantly distinguishes you from other online stores. Do you remember the last time someone gave you gifts from the shops? Remembered? Draw your own conclusions.

Don't put gifts.
Thank you letter too.

Summarizing

For myself, I already made conclusions a long time ago. For me, dropshipping is a way to sell remotely without any added value on your part.

Well, they bought it, they sold it, they even earned something on it.

Boring.
Not interested.
Sadly.

In business, what matters most is your game with the customer:

1. Give something that others do not give;
2. Do something more that the buyer does not even know;
3. Give a gift that he will immediately post on Instagram for joy;
4. Attach a letter of thanks to the order, where you address the buyer by name and write a big “Thank you!” with a ballpoint pen;
5. And put it all in your branded package.

Such little things form a lot of positive emotions in the buyer. Everything. He is yours. Forever and ever.

And the dropshipping scheme itself cuts everything in the bud.

Therefore, I am sure that by the end of the article you had the impression of what dropshipping is and whether it should be considered in your project at all. I would not:)

But if you still want to go this way, I suggest discussing the start algorithm.

Dropshipping start algorithm

Imagine that you have already chosen a niche and found dropshipping suppliers.

Stage 1. You just started

At the very beginning of the journey, you work completely from the supplier’s warehouse and at the moment the main task for you is to determine which products are most popular with buyers.

We start traffic and look:

1. What are the customers ordering?
2. What products are most often asked by phone?
3. What are the most viewed products on the site? This will help you.

Having compiled a list of the most popular products, we move on to the next step.

Stage 2. There is an understanding of what they are buying

Once you have compiled a list of the most popular products, you can consider buying them from the supplier's warehouse. Here you will already have a wider list of suppliers, since you no longer have the task of working with a dropshipping supplier.

Divide this work into several stages too. If you're on a tight budget, buy items slowly. So you will gradually gain confidence in your abilities.

We pass to the third stage.

Stage 3. Choosing a further development strategy

At this stage, you have most likely already accumulated “fat” and this somewhat unties your hands.

1. You refuse dropshipping completely, moving completely to your warehouse, albeit with a less wide range. But then you have the flexibility to make decisions.
2. You refuse dropshipping completely, find a supplier who works “on a deposit” and form your own small warehouse. And the missing items are ordered from a new supplier.

At the same time, nothing prevents you from keeping “in reserve” the old dropshipping supplier, thanks to which you got back on your feet.

This whole scheme is described from my own experience, but, I assure you, not everything in it is so smooth. Each niche will have its own nuances and you will not get away from them. Verified :)

Personally, I disdain dropshipping and there is not the slightest desire to fully work with it, despite successful examples.

It's a really bad format.

Dropshipping is a new way of doing business through the internet. The intermediary sells the goods at their own price to the buyer, pays for the goods from the supplier, and the supplier sends the order directly to the buyer.

What is dropshipping

Dropshipping what is it? The word "dropshipping" in translation from English - "direct delivery".

This is a new way of doing business, in which the sale of the supplier's goods is carried out by an intermediary or dropshipper via the Internet.

To put it simply, a certain intermediary offers a product major manufacturer(at its own price, taking into account its percentage) on its own website on its own behalf or under its own trademark and accepts payment from the buyer.

After that, the dropshipper places an order (reports the buyer's coordinates, for example, Moscow) and pays for it from the supplier. The manufacturer sends the goods to the specified address directly to the buyer.

What is the benefit of the supplier

Such a scheme of cooperation, from the point of view of marketing, is beneficial to the supplier, who has in many aspects.

Firstly, it becomes possible to sell all over the world, without special costs for the promotion and advertising of your product. This will be handled by the dropshipper.

Secondly, as soon as a demanded product appears on the market, it instantly spreads. The main management is the timely processing and dispatch of incoming orders.

Thirdly, it is not necessary to have and maintain retail outlets, staff, etc., if the retail buyer places an order directly.

Fourthly, in this trading system there are no insolvent buyers, no delays in payment, no difficulties with unjustified transportation costs, etc.

Dropshipper Benefit

Such a business, and this is the main nuance, practically does not require financial investments from the intermediary. It follows from this that such entrepreneurial activity is practically devoid of risk.

Payment for the goods is made only after the intermediary receives funds from the buyer, that is, there is no financial risk, although often it is made through.

When selling products on your website, you will not need to collect information about the product, it will be provided by the manufacturer.

The supplier will send its products on behalf of the dropshipper, that is, the intermediary's own trademark will be promoted additionally.

There is an opportunity to cooperate with an unlimited number of manufacturers. In this case, it is possible to avoid a disruption in the delivery of the order, if the goods are not sent by one supplier (with a refund), then you can re-order it from another.

Dropshipper is not Sales Representative, so there is no obligation to the manufacturer. Only after paying for the order, economic relations appear, so anyone can run such a business.

Important: the success of the work will depend entirely on the marketing tactics and preparation of the intermediary.

Dropshipping of toys and goods for children is especially beneficial, so you can choose this particular direction of work.

Beginning of work

1. It is necessary to make your business legal, that is, register an individual entrepreneur (according to Federal Law No. 129 of 2001 (as amended in 2016)). This is especially important for Russian suppliers who may request your details.
2. For foreign suppliers it is not essential.
3. Important! You need to find a site of a serious and, most importantly, a conscientious supplier who has low prices for goods, if you take both wholesale and retail. And also there should be postal, courier delivery.
4. You should make a trial order, while discussing all the nuances of cooperation, payment terms (in what currency payments will be made), money back guarantees, delivery times, online tracking of parcels, etc.).
5. Important! If payment with the manufacturer will take place in foreign currency, then difficulties (losses) may arise due to the unstable exchange rate. Therefore, it is better to make calculations only in the currency of Russia or, for example, Ukraine (depending on the location).
6. You need to create a ready-made template or purchase an already working online trading platform, that is, a website. The site must have: form feedback, a catalog of offered goods, a form for registering an order, a well-functioning payment scheme.
7. Important! The site should have options for accepting payments, the same as the manufacturer. After all, if, for example, you transfer funds from a bank account to, you will have to pay interest.
8. It is necessary to carry out work on the selection and testing of the most popular categories of goods. It is simply necessary to conduct such a study to build up experience in implementation.
9. You should do advertising and promotion of the site in order to attract buyers (often, advertising in Google Adwords or Yandex Direct is used - that is, advertising in search engines, as well as advertising from social networks - the so-called SMM). Internet promotion can be entrusted to specialized marketing agencies that can guarantee a certain sales result for a certain period (high).
10. The buyer purchases products on the dropshipper's website, transfers payment to him, with shipment from the manufacturer. The dropshipper accepts payment, transfers it to the supplier, minus their commissions.
11. The manufacturer processes the order, sends the parcel to the addressee, the coordinates provided by the intermediary.

Supplier Selection Criteria

The offered products of the main seller must be competitive and have a stable demand in the trading market. Market research should be done.

Important: the supplier must guarantee a refund in case of marriage or non-shipment of the order.

There may be several intermediaries in the field of sales, the main condition in choosing the main supplier is an acceptable selling price of the goods. After all, it is the price that will be the main element in the promotion system of the offered products.

Delivery times must be met 100%. Choose a seller from minimum terms delivery is not always a justified move, because they may not be observed.

Important: All products must be certified and, most importantly, safe to operate and use.

The methods of transferring funds to the seller must be the same as on the intermediary website.

Dropshipping scheme

Positive aspects of the scheme:

1. Large investments are not required for the purchase of goods, the lease of warehouse and retail premises, and the payment of wages.
2. The ability to offer the buyer thousands of different products.
3. To conduct trading operations, you only need access to the Internet resource.
4. The intermediary will receive income due to the difference in cost.
5. The goods will be sent by suppliers, there will be no need to deal with postal shipments.
6. There is no need to pay for shipping, especially if the parcels are sent worldwide.
7. It is possible to cooperate with several suppliers at the same time.

The scheme of work has its negative sides:

1. The need to accept payment, and then transfer funds to the supplier. All transfers will be made through online services, which usually charge their own percentage for this.
2. If the product is not sent to the buyer or it is defective, does not correspond to the order, then the intermediary will have to answer.
3. It is impossible to influence the delivery time, and their observance will be guaranteed by the dropshipper.
4. Packing and safety of the ordered products also depends only on the supplier.
5. After the order is transferred to the manufacturer, it is very difficult to track the success of the transaction.

In order to attract the largest number of dropshippers, large trading magnates on the Internet create the most favorable working conditions and cooperation for them.

Online platforms are offered for creating or using a ready-made, fully functional website as an online store, a ready-made database of goods and data from the most profitable suppliers in the world.

Dropshipping or how to sell a product without having it in stock

For those who want to gain financial independence, there are a huge number of ways to earn money in addition to the classic “going out” to work. Is there a way to start full-fledged trading without serious initial investments? Yes, it exists, we will analyze in detail what dropshipping is and whether it is possible to earn big money on it.

What is dropshipping in simple words

First you need to know that dropshipping is a business, with all the ensuing consequences, including legal ones. If you have no desire to contact the tax authorities or open your own legal entity, then, as they say, "parachuting is not for you." If you are ready for such difficulties, then I recommend that you read the article, which details all the nuances of opening an IP, the article is available . But there are a huge number of ways to earn money online, and in addition to dropshipping, if you consider yourself a person with a sharp mind and great perseverance, then you can try to make money in the foreign exchange market. Everything is explained in more detail in the article. ", I recommend to read.

So what is dropshipping? If to speak in simple words, then this is an intermediary business between the manufacturer and the end consumer. In other words, you are then a reseller. Manufacturers are not interested in working on the B2C principle, it is much more interesting to work on the B2B principle. Dropshipping is one of the many types of startups associated with online trading. Most of the new projects start their journey on the World Wide Web. There are a lot of ideas, I recommend that you read the article, which tells about the most promising ideas for online business, the article is .

Familiarity with the principles raises a simple question: “How is dropshipping different from a regular store?” The answer to this question is the following - if you are engaged in dropshipping, then there is no need to keep a warehouse or open your own store. The interaction between the buyer and the manufacturer occurs almost directly. Accordingly, for the successful conduct of this business, it is necessary to have good internet site, but more on that later. There are not so many people who want to walk from apartment to apartment with a catalog in their hands and offer goods. This way of interacting with customers is called "direct selling", but that's not what we're talking about now.

Dropshipping - advantages and disadvantages

Having dealt with the question of what dropshipping is, it is worth evaluating what are the pros and cons of this business idea. Like any business, dropshipping has its own specifics, and for an objective assessment, you need to clearly understand it:

• Working with the end user. The emphasis on this circle of customers is made to enable successful competition with local sellers.
• There is no need to rent a commercial space. You can even work at home, although experts recommend renting an office - this creates a working mood and favorably affects the results.

Understanding these two key features, you can already fully understand all the advantages compared to "offline" trading, as well as all the "pitfalls".

Dropshipping Benefits

Let's immediately consider the main advantages of dropshipping, let's try to figure out what attracts so many people:

• The most important advantage, due to which hundreds of people go online and look for what dropshipping is, is the low start-up capital for starting a business. And in harsh cramped conditions, you can do without it at all.
• Competitive prices. Prices for such a product for the end consumer will be much lower than those of "offline" competitors, which is also a huge advantage.
• There is no need to keep a warehouse. This is a very big plus of dropshipping at the start, it reduces costs due to the absence of renting premises and goods that cost a lot of money. But successful companies dropshipping companies usually keep small warehouses with the most popular products.
• High profit. If you establish good relationships with suppliers, you can buy goods at very favorable prices, respectively, the profit will be high, and if we take into account the absence of ancillary costs, then the percentage of profit becomes even greater.

All the advantages are immediately visible, many will immediately light up their eyes, but let's first look at the other side of the coin.

Disadvantages of dropshipping

Like any type of business, dropshipping has disadvantages that can significantly hit aspiring businessmen:

• Huge competition. Having learned what dropshipping is, about all its advantages, people poured into this business sector en masse. Girls can truly appreciate the scale of the influx of such "businessmen". To each several times a week in social networks“Knocking” on friends sellers of various clothes, making “collective orders”.
• There is no way to rate the item. First of all, we are talking about working with foreign manufacturers. You will only work from photos and reviews of other people, if you can find them. And the Chinese "partners" can slip a frank marriage.

These are the two main disadvantages of dropshipping, the discovery legal entity to bring in minuses - it is frivolous. But many people neglect this, which is a great folly. Yes, it is not easy to trace such a business on the Internet, but gradually such businessmen are brought to light.

Dropshipping: all the nuances and where to start

Having dealt with the question of what dropshipping is, we ask a question about further actions. If you have experience in doing business, then most likely there will be no problems with further actions. But for beginners, this is a real crossroads, so it’s worth doing the following steps, which are the main ones for successful dropshipping:

• Market analysis. This is the first thing to do, it is worth paying attention to competition and niche employment. Soberly assess your strengths - will you cope with so many competitors, will you be able to fight off your place under the sun. It is also not worth poking into absolutely empty niches, if they are empty, then there is no demand. The Internet is a free place to maneuver, if you choose between empty and busy market, then the choice will certainly be in favor of the second. It is worth taking market analysis very seriously, since the next stage is the creation of a website. Creating your own selling tool requires certain costs, if you make the wrong choice, you will have to spend extra money on redesigning the site.
• The second step is the creation of an online store. Now I will not paint anything in detail, in more detail about this aspect below.
• Niche assessment and business testing. This stage should be done along with the search for suppliers, while looking for better offers and evaluating the demand for the proposed product.
• Supplier search. You have already decided on your market and potential client If so, then it's time to look for reliable suppliers. The easiest way to do this is on the Internet. Most often, suppliers are looked for in China, where companies offer the lowest prices. But it may be worth contacting local manufacturers. Of course, there are some enterprises with a Soviet “hardening” and you can simply be ignored, but for the most part, not knowing what dropshipping is, they are interested in marketing their products and working with regular customers.

These are the main stages of developing your dropshipping business, but let's take a closer look at some of the previously mentioned details.

Is it necessary to register a legal entity?

Novice businessmen believe that the registration of a legal entity is the tenth thing and can wait quietly. Of course, their fears are quite understandable and the logic of reasoning is extremely clear. But sooner or later you will have to legitimize your activities. European companies and domestic manufacturers will not work with you if you are not officially registered.

With Chinese companies, everything is much simpler, but the chance that you will be deceived is much higher, so it is best to document all documents, payments and deliveries. Trading platforms where Chinese suppliers are located value their reputation very much. With the help of the leadership of such sites, you can influence your partner, but only if you have all the documents. Also, importing goods from China can be very complicated for individuals. It is planned to introduce duties on goods exceeding a certain amount. For different countries CIS amount is different, for example, for Belarus the amount is about 20 euros.

Yes, registering your company, whether it is an individual entrepreneur or LLC, is associated with certain time and financial costs. In addition, registration imposes on you certain responsibilities, but you also get rights. Perhaps there are still more minuses than pluses, this is a necessity from which there is no escape.

Where to find a reliable supplier and what to fear

Having dealt with what dropshipping is, with the need to register your company and other nuances, the main question remains - who should you buy goods from. The gaze of many newcomers is directed in one direction - China. Let's see where you can find a good supplier:

• Large wholesale. These companies are the last to be contacted. They are rarely exchanged for small wholesale. A novice businessman does not have to pay big expenses. These companies include the DealeXtreme website and Alibaba.
• Medium and small wholesale. A very interesting direction for dropshipping, because domestic companies are also actively working in this direction, organizing bulk purchases from various manufacturers and sending them to companies. The fee is taken for postal services and it is small, but the volumes are huge. One notable example is Alpix.
• Retail and small wholesale. Aliexpress and that says it all. It is unprofitable to make large orders here, but it is very profitable to purchase small wholesale and retail goods. True, the delivery time may be delayed and it is worth contacting such companies as a last resort.

The advantage of such sites is the protection of buyers, those who have ever ordered goods from Chinese sites are well aware of what they are talking about.

Are there any risks? Yes, they exist, but for the most part they are related to independent work with manufacturers. Here's what to watch out for when dropshipping:

• One day firms. This is the scourge of the whole business, but dropshipping is especially prone to it. Inexperience, legal illiteracy do their job, attracting a huge number of scammers. It is impossible to insure, but you can minimize the risks by working only with trusted manufacturers.
• Defective goods. This is mainly a problem associated with Chinese partners, but domestic manufacturers also sin with marriage. More often you come across fakes from China, the money will be returned to you or the goods will be replaced, but all this will take about two months, and by this time you will lose your client.
• Electronic Fraud. Take your online security seriously: passwords for mail and site admins, access to the payment system - all this should be securely stored.

This is the basic information for choosing your supplier. Everyone who is engaged in dropshipping, over time, finds his manufacturers and approach to them. With the help of this material, it will be much easier to start the search.

Website as the main tool: everything about successful trading on the Internet

So we got to the main topic and the complexity of dropshipping - how to sell a product. The main tool for selling such goods are sites, there are three main ways to “open” your online store:

• Building a website from scratch. The cheapest option is self-creation on various CMS systems and creation on ready-made constructors. In the first case, you will have to spend a lot of time, but as a result, you will get exactly what you want. Costs are minimal - hosting payment, approximately $5-10 per month, purchase of a domain name, $3-10 per year. This is the cheapest, but the longest way.
• Creation of a website based on a "free" constructor. The word free is in quotation marks for a reason. In order to create a more or less decent site, you have to pay. The amounts are minimal, about 10-20 dollars a year, you don’t have to pay for hosting, some designers will even provide you with a domain name like company.ru for free. The disadvantages include: appearance the site is limited by the constructor, the inability to implement the functionality of the CMS. Often, such designers offer services for the initial promotion of the site.
• Ordering a finished site from a web studio. The same as the first option, only quickly and for money. Prices start at $300 and up, depending on the features you need. Whether you are ready to spend this amount of money to create a website is up to you. As a rule, such studios offer website promotion on the network according to the necessary requests. This is very important for trade, and dropshipping in particular. But more on that a little later.
• Buying a site on the marketplace. This method combines price and results, but not always in your area there is a good marketplace that ranks high in search engines. If there is, then it is best to pay attention to this option. For an amount of $ 300 or more you will receive: a website builder with additional tools, hosting for the website, and most importantly, a place in the search results.

There are a lot of ways to create websites, everyone chooses according to their financial and their capabilities. But just creating a website is half the battle. Our goal is to sell a product, and in order to sell it, you need to find it.

Website promotion on the Internet: what a dropshipper needs to know

Website promotion is the most voluminous and costly part of the work, especially in the early stages. Again, there are several ways to promote your "store" on the Internet, let's look at them:

• Promotion with the help of a web studio. In this option, a third party does all the work for you. And for this they take money, payment depends on the number of promoted requests, on the popularity of these requests, and on many other factors. Prices for such services start at an average of $300-500 per month. Infusions of these finances are constantly needed, but for a working business this is not a problem.
• Self promotion. But what about a beginner dropshipper? It's all very easy to do it yourself. Write or buy unique content for your site, optimize it, improve usability. There is a huge amount of materials on the Internet with which you can promote your site from scratch. It will take time, however, many times longer than that of a web studio.

But it is worth remembering that the effect of SEO promotion does not come immediately, but, at best, in the third month of working with the site. But there are other tools that allow you to start working instantly.

Other customer acquisition tools

There are other ways to promote your product on the Internet. From a financial point of view, they can be more costly, but a dropshipping business cannot refuse them:

• Contextual advertising. This is the main tool of many companies, now companies are abandoning SEO promotion in general, directing the released funds to contextual advertising. Why is she so popular, let's deal with this question. Contextual advertising - advertising in search engines, built on the principle of "pay per visitor". In a nutshell, you set up requests, and visitors follow them, payment is charged per visitor. That's why contextual advertising so popular. Detailed information about such advertising can be found at the companies providing such a service, at Yandex and Google.
• Product promotion with landing pages. A landing page is a one-page website created for the purpose of promoting and selling one particular product. Works best with contextual advertising.
• SMM or social networks. Advertising products in social networks and finding customers is a new trend that is actively gaining popularity and effectiveness. You could come across VKontakte groups, specialized pages for the sale of goods. Remember at the beginning of the article it was about “knocking” girls selling goods - this is also SMM. The method is effective primarily due to direct interaction with the client, receiving instant feedback.

There are a lot of tools for working with the site, but they require certain financial and time costs. This is why most dropshipping companies go into liquidation, making the same mistakes over and over again. The site is your store, your face, and constantly investing money and time in it is a natural process.

Conclusion

In this article, we have dealt in detail with what dropshipping is, what are the pros and cons of this type of business, and whether it is worth doing it at all. We also discussed in detail the issue of the main sales tool - websites. After reading this article, you are now fully prepared to take your first steps in this difficult task.

Glad to meet you again, friends.

Just yesterday, he promised to continue the topic of earning money through the dropshipping system, which is relevant for many, so he kept his word.

Today's article is again devoted to intermediary services, we will determine for whom this type of activity is suitable, what pitfalls it contains, how much you can earn on dropshipping and how to set up this business.

But first, let's answer the questions. : dropshipping system - what is it, what is it for, how much experience does it require. And is it necessary to get involved in such a business at all, if you have never been involved in trade.

1. What is dropshipping, how to start a business?

The system is based on a direct delivery agreement between the intermediary and the supplier. The recipient of the order (client) finds the goods he needs on the intermediary's website and through the intermediary makes an order, which the dropshipper passes to the supplier, he also transfers the customer's coordinates and the money received from the client. Keeps a certain percentage.

Actually - everything. This is where the dropshipper's participation in the deal ends. He has neither a warehouse for the goods, nor the goods themselves. His task is to attract as many buyers as possible for a partner and receive a well-deserved reward. Packing, shipping, selling leftovers is not his problem.

It seemed like the perfect business. You are aloof from the main process, you do not bear any responsibility, but at the same time you earn.

But is it really that simple? Let's figure out what dropshipping is and how to start the process of working in this direction.

The most important thing that is needed in this business is your own trading platform, for example, a website and the presence of a reliable supplier.

2. What should be the store

Of course, you can start working on the social network, or even on your page. But that would be disingenuous. You will not be able to decorate the “showcase” beautifully and in an original way. There are no such opportunities in the social. networks, as their own resource provides.

When creating an online market, you can use one of the options:

• A full-fledged multi-page with large sections for a specific type of product;
• Several one-pagers (each - under separate view products);
• Landing as an advertising site for a future online store.

The fact that a dropshipper should not have a “headache” about the product is an absolute plus in running this type of business. But as far as I know, a responsible dropshipper always cares about their reputation. Therefore, he will not risk contacting a supplier whose majority of goods are of poor quality. And despite the lack of physical goods on hand, there is always enough work in the online store:

• find high-quality product images from several angles;
• add attractive and accurate descriptions;
• if there is not enough information about the product, contact the supplier and demand a detailed description from him (the buyer will ask you);
• constantly replenish and update the range;
• look for new suppliers.

3. What should be the supplier

A reliable responsible supplier is 80% of the success of your store. If the company is well-known and holds the brand in every sense (both the quality of the goods and the quality of service), then this greatly simplifies the work of the dropshipper. The conscientiousness of the supplier is a kind of guarantee of your calm and fruitful work.

After all, if something is wrong with the product (it is of poor quality, does not match the description, was not sent on time), the buyer will file claims not with the supplier, but with the intermediary - the owner of the site on which he ordered the goods.

Therefore, choose your suppliers very carefully. Start not with Chinese, but with domestic ones. Google up to page 20 and start browsing from there - vendors don't do well with SEO, so they can't be found at the top of the feed.

The easiest way to reach a bona fide supplier is to use information from supplier catalogs, dropshipping is the only thing that keeps it going. The list of directories can be found in the article "".

4. Features of the dropshipping business, advantages and disadvantages

Some of the benefits of dropshipping include:

• optional availability of start-up capital;
• the need for a warehouse;
• the need to have an office;
• high percentage of profit.

Flaws:

• inability to assess the quality of the goods;
• high competition;
• Availability reputational risks(not every supplier is conscientious).

Now I will decipher the point about starting investments. They are really not needed big, but they are needed for money. Books on dropshipping by Western authors assure that thousands of dollars will be enough to get you started. At the current exchange rate for an ordinary Russian, a thousand cu. - a lot of money. Not everyone has this amount. But if you are serious about this business, you can start very successfully by taking a loan. The creation of an online store will pay off in two to three months. And when you get the job done (find a responsible supplier and regular customers) it will be possible to reach a monthly income of $ 1000.

But you'll have to work hard. As I said before, dropshipping is a job and this type of income cannot be called passive.

5. Why do users trust intermediary stores?

The sales scheme has been worked out to the smallest detail and is very beneficial for all participants in the transaction. That is why dropshipping is so popular in Russia. Look who works according to this scheme - the giants Ulmart and Ozon! And the flow of customers in these markets is increasing daily.

In the same way, only on a smaller scale, any other online store can serve customers. But, again, I draw your attention to the level of responsibility of the supplier - buyers will not take poor-quality, unfashionable, stale products. Therefore, it is in your interest to find a reliable and honest partner.

The main task of a dropshipper, in addition to finding a supplier, is to monitor site traffic and increase the number of active buyers.

6. Pricing and competition

Keep track of attendance, attract customers… It sounds easy, but it takes a lot of effort. Therefore, I would not rush to call dropshipping trading easy and feasible for a beginner. In this area, you need to be a "shark", because the competition here is very high.

If you are serious about dropshipping and how to organize everything, you already know, and at the same time you think that you can easily bypass competing companies only at the expense of low prices, you are very wrong. Although, I must admit, the low margin plays into the hands of the dropshipper - buyers are more willing to order goods at a more attractive price.

But, in addition to low cost, the buyer can be attracted by bonuses, discounts, promotions that he will not find in other stores. A very useful skill for any mediator is competent work with a proposal and the ability to convince.

7. Unpleasant features of working with suppliers

The section is relevant for all dropshippers who work with China, and everyone who plans to mediate between Russian buyers and Chinese suppliers. Not only is the delivery time very long (up to two months), and you need to overpay for fast delivery, failures can also happen: a dropshipping site can make mistakes in logistics, supplies, and other important points for the buyer.

Therefore, advice to those who are going to implement a dropshipping scheme with China: never promise delivery within two weeks. This will help you attract customers in the first place. But since the deadline is unrealistic, most buyers can refuse your services after the first delay in the order.

The second nuance is that the Chinese love to embellish reality. And those who have experienced this tough “heavenly” dropshipping (reviews of 2017) say that in 70% the picture of the product is very different from its real look. Especially many blunders are made by clothing manufacturers: they take branded models as a basis and turn them into nondescript, stretched rags that do not match the size. On Aliexpress, such suppliers are through one. Try to let the customer down by offering him a “chic” outfit from such a store, and you will be the last one, not the Chinese seller. Therefore, I emphasize once again: be very picky when choosing a supplier.

8. How Successful Dropshipping Starts

Dropshipping turned out to be such a convenient way of doing business that everyone who is not lazy began to engage in it, and it has somewhat lost its originality. Now it is easier to get lost among competitors than to stand out somehow. Therefore, I advise you to start with the choice of assortment.

The most popular product groups:

• clothes;
• shoes;
• smartphones, mobile phones and accessories;
• building materials;
• auto parts;
• cosmetics and hygiene products.

The range is formed, the supplier is found, the site is. Consider a few more far from minor components of a successful business:

• effective advertising campaign, I recommend reading my article about;
• constant focus on the consumer;
• creativity in the implementation of a business idea;
• the right choice of marketing tools.

In this “simple” business, only the most creative and persistent survive.

9. Step-by-step guide to starting a dropshipping business

Having caught fire with the idea of ​​​​how to make money on dropshipping, you need to study all the nuances of this business and not burn out when faced with certain difficulties. Many believe that this is not a business, but a vacation, in which nothing needs to be done. No, it's necessary! And here's what:

1. Choose a niche in which you will work. It is desirable that you understand the products that you will offer to customers.
2. Test the chosen niche - if there is a demand for the product, feel free to start working.
3. Create an internet site.
4. Find several reliable suppliers, negotiate with them and conclude contracts.
5. Start promoting your store and attract customers.
6. If necessary, register a PP or LLC.

9.1. Dropshipping training from experts

Friends, this article is just a small introduction to the world of dropshipping, its basic principles, so to speak. And maybe I would have shared all the information in more detail, but now, I cannot take on such responsibility at the moment. If I have ever managed to sell sneakers and sneakers somewhere, then this is more luck than a well-established scheme.

[I will write about it a little later]

10. Who is this business for?

Not every newcomer just "from the lantern" who decided to become an intermediary, he will do. Dropshipping "loves" people who are persistent, creative, persuasive, good at negotiating and well versed in certain products. Management experience would be a plus.

This type of activity is ideal for owners of small sites, it is guaranteed to provide them with a steady income, if not huge.

What do you guys think about the profitability of dropshipping? Who has experience in this? I will be glad to your comments.

Sincerely, Sergey Ivanisov.

I have never been satisfied with the life that most people lead. I have always wanted to live more richly and vividly.