Eli5. What’s drop shipping?

Question

So I’m new to this. Seen like 5 vids on tik tok and wanna learn more. Because you buy a item for like 10$ from a customer, then you sell it for the same 10$ or what? That would be 0 profit. Do you sell it for more? If that’s the case, why would people buy it from you then?

In: 4

Answer 1

Dropshipping is a retail fulfillment method where the seller doesn’t hold any inventory, but instead, when they receive an order, they purchase the item from a third-party supplier who ships it directly to the customer. This allows the seller to operate their business without investing in inventory upfront, as they only buy the products when they receive an order.

You are correct that selling products for the same price that you bought them for would result in no profit, and that’s not the goal of dropshipping. Dropshippers usually mark up the prices of the products they sell to cover their costs and make a profit. This can be done by setting higher prices or by negotiating lower prices with suppliers to increase their margins.

One of the advantages of dropshipping high-quality products from US-based suppliers is that it can help you to provide fast shipping times and excellent customer service to your customers. Additionally, by leveraging dropship automation software like TheSellerHelper.com, doba, or inventorysource, you can automate your dropshipping business, from listing products to fulfilling orders, which can help you to save time and streamline your operations.

For instance, TheSellerHelper.com is a dropshipping automation software that not only allows you to use integrated suppliers without having to sign up with them but also allows you to integrate your own suppliers to the app and hook them to Amazon, eBay, or Shopify. This can help you to automate everything from A to Z, including listing products, managing inventory, and fulfilling orders, which can help you to focus on growing your business and generating more sales.

In summary, dropshipping is all about quantity, since there is no upfront investment, the more products you list, the higher chance you have to get a sale. By leveraging high-quality US-based suppliers and dropship automation software like TheSellerHelper.com, you can build a profitable dropshipping business with low overhead costs and minimal risks.