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What is Dropshipping – Dropshipping Model & How it works

As India got hit by the wave of Jio, everyone got their hands on the Internet. The way, internet became so much affordable, people started learning to think of new ways to make money. One such business model was the dropshipping model.

The drop shipping business is one of those businesses that have a huge profit if done correctly.

So, what is drop shipping and how to start dropshipping? Let’s get right into it and know everything that you must know about it.

What is Drop Shipping

The Drop shipping business is a very simple business model. Let’s compare how the traditional business models are and how the drop shipping business model works, side-by-side.

How traditional business works:

Someone goes to a store.

They pick a product.

Make a purchase.

Traditional businessThis is how usually the businesses used to roll out, right? But, in the dropshipping model, the way business operates is different.

The way a dropshipping model operates is:

You list a product on your website

Visitor clicks on the product

Leads to the seller’s website (which is not you)

The visitor buys the product

You send the seller a notification about the visitor’s shipping details

The product gets shipped

That’s it. This is how the drop shipping business operates. But, what’s the benefit of selling something for you? Let’s get right into it.

Pros of Drop Shipping

Dropshipping is one of the best working methods in 2019 that is providing a great lifestyle for many people. A lot of young Digital Marketers in India have made a huge fortune with just dropshipping.

So, what are the pros of Drop shipping?

Pros of Drop ShippingYou don’t manufacture anything

Such an amazing idea, right? You don’t have to make anything, yet this can make a lot of money for you. In drop shipping, you list a product on your website that redirects to the seller’s website. It’s that simple. You only have to make a listing on your website. So whenever someone wants to make a purchase, they’ll click on your website’s listing and then they will get redirected to the seller’s website. And everything from there will get managed by the seller only. Be it packaging to shipping, everything will be managed by the seller.

You make an extra amount on every product

Yes! By now, you might have thought what’s in it for me when you were reading what is Drop shipping. So, in dropshipping model, whenever you list a product on your website, you can list it on any price you wish to.

For Example: Suppose there’s a website that makes really beautiful watches. The price of each watch is INR 5,000. So, you list the same watch on your website for INR 10,000. Now, whenever someone clicks on the product listed on your website to check it out, they’ll get redirected to the seller’s website.

Here, the product price at the check out section would not be INR 5,000. Instead, it’s going to be INR 10,000. That’s the difference. So, the difference, i.e., INR 5,000 will be delivered to you. This is what Dropshipping does for you.

Amazing, right?

That’s the major reason why you should learn how to start dropshipping.

Low cost execution

drop shipping money costDrop shipping business is one of those businesses that you can start with very less investment. Everything is online. You don’t have to manage the inventory. All you need is the direct coordination with the seller.

A lot of people ask us how to start dropshipping as this is one of the best businesses that you can establish at low investment.

All you need is a website with regular traffic running on it. So, if you also want to start dropshipping model business, then read how to make a website here.

Test more products

This is one of the major reasons why dropshipping model is working wonders for a lot of people. You can pick a niche in which you want to target people. Now, if you think that a certain product in your selected product isn’t working well for you, then you can quickly remove it from your store and list out some other products.

So, these were the benefits of Dropshipping explained in the easiest language possible.

Now, let’s see for whom is Dropshipping made.

Who can start dropshipping

Dropshipping is one of the easiest ways to make money. But, only if you have regular traffic coming on your website. In case you don’t have traffic, then your dropshipping business is as good as dead. So, the only reviving factor here is traffic. Only traffic can help you get purchases and of course, commission.

Now, let’s see who all can start dropshipping.

Students looking for side income

Drop shipping is just like any other ecommerce website. You make a website, send traffic and start selling products. That’s it. So, any student who can take out 2 hours everyday from its day can definitely make enough to pay its school fees.

Students looking for side incomeStudents can easily learn how to start dropshipping as they are in their early days of life. This means that they do have higher intent of learning. And if something is giving them money in return, they would definitely be interested in learning that.

Agencies looking for side income

There are some agencies which would like to add more sources of income to their list. They can’t always rely on clients for their bills and income. This is where dropshipping business can help them.

They can take full control over the products they want to sell. Agencies know how to make a website and they can definitely consider dropshipping to make more money.

Housewives looking for side income

Housewives can also start dropshipping and they do have slightly higher chances of succeeding in some specific fields. How? Housewives who have a knack for clothing, household items, they can definitely make a website and list products and items of that field.

One of the best parts is that, not many people are working in such niche. So, you automatically are left with very less competition. Therefore you can earn more with dropshipping.

So, this was it about understanding what is dropshipping. To understand how to find the right products for drop shipping, read our next blog.

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