Home › Housing and communal services › Types of dropshipping. How to open an online store using dropshipping: a step-by-step algorithm. How to open an online store for dropshipping: step-by-step algorithm

Types of dropshipping. How to open an online store using dropshipping: a step-by-step algorithm. How to open an online store for dropshipping: step-by-step algorithm

Dropshipping. This sales system is a magnet for new online sellers. It is believed that dropshipping allows you to open an online store without investment, since you do not need money to purchase goods and their logistics. There are other advantages: creating a brand without a product, easy expansion of the range, etc. But is this true? Is dropshipping really beneficial for a newbie webmaster? In this post: All the pros and cons of dropshipping, who really benefits from dropshipping, and so on.

The word “dropshipping” itself means “direct delivery”. This system allows you to sell physical goods without having them. The seller (webmaster, let's call him that) attracts customers to his online store, accepts the order and transfers it to the supplier. The supplier, in turn, sends the order to the client. Simply put, with dropshipping, you are actually selling someone else's products.

Beginning webmasters, anyone who wants to make money on the Internet, are promised that dropshipping allows them to enter sales “for free”, since no money is needed for the purchase of goods, their warehousing and logistics. Novice webmasters (more experienced ones are unlikely to do this) willingly believe in the promises of suppliers and all those who promote this system. However, is dropshipping really that good?

First, the advantages of dropshipping.

You don’t need goods, which means you don’t need investments in purchasing, you don’t need warehouses and logistics. I agree with this, and this is the only rational grain of this scheme.
You can sell other people's products under your own brand;
It's easy to expand the range.

That's all. And, as we will see later, some of these supposed advantages hide a serious headache.

Now the disadvantages of dropshipping.

The main disadvantage of this system is that all the difficulties of the scheme begin to appear only when you dive into it and begin to collect all the pitfalls on your fledgling stern. I’ll start right with the third “plus” - expansion of the range.

I don’t argue, there is nothing easier than expanding the range with dropshipping. You just need to choose new product, and add it to your store. But it may happen that the new product will already be from another supplier, which means you need to negotiate again, choose the best, and keep your finger on the pulse, since now you no longer have one supplier, but two. Imagine if you have a large store with a bunch of products, most likely this will mean collaborating with different suppliers and monitoring their actions. But this is already a jungle, let's first talk about the more obvious disadvantages of this system.

1. Everything is your fault.

By accepting an order, you will promise the client that you have excellent quality, fast delivery and excellent gift wrapping. But the trouble is that with dropshipping, you don’t see the product, nor the supplier himself. And if the supplier sends a defective product, then you, as the seller, will be responsible for this. The buyer will call you.

2. You don't know what the supplier will put in the order.

3. You don't have the ability to upsell.

Upselling allows you to significantly increase the profit of an online store. The client placed an order with you, and you offer him an additional product at a discount. About 30% of clients are willing to upsell. Thus, you attract one client and sell two products, and the second sale is free for you, since you do not spend money on advertising this product. When dropshipping, implementing an upselling system is either difficult or impossible in principle, since it happens that the second product must be looked for from another supplier.

4. You are not valuable to the market.

A serious point that novice webmasters do not know about. The task of a good seller is not to sell a product; anyone can sell, and there are millions of them. A good salesman strives to be an exclusive seller, even if he sells the same thing as everyone else. To do this, he tries to come up with any feature that will allow him to stand out and differentiate himself from competitors. That is, in marketing language, he is trying to create his own USP (Unique trade proposal). It could be anything: special packaging, an additional gift for the client, or even a handwritten card.

Simple trading will no longer surprise anyone. Ordered, delivered, paid. Everyone is used to this, so good seller always tries to give a little more. And if he succeeds, then the client is happy. And if he is happy, he tells his friends about the seller, posts photos on social networks, since he did not expect such care. And this, in turn, leads to a viral effect and brings in new customers, which means advertising is reduced significantly. And these clients become his clients for life. And when a good seller buys a new product and sends it to his base, they are the first to buy it, because he is great.

But, you cannot achieve this with dropshipping, since you do not have product interaction with the client. You are not the owner of your product, which means that all of the above can be done by your supplier, not you. Moreover, he will do this at your expense, but more on that below. With dropshipping, you are not valuable to the client or to the online market as a whole.

5. Pricing.

When dropshipping, in addition to the price of the product, you must make yourself a markup. This markup should cover advertising costs and leave you with a profit. But the trouble is that now, with developed context and retargeting technologies, after visiting one site, within an hour you begin to see advertisements for similar sites and products. In this case, there is a high probability that your client, having placed an order with you, will see your competitor’s store, only at the regular price, without a dropshipper’s markup. Guess whether he will buy your goods from the post office after this? And if one of the competitors dumps, that is, they openly lower the price. What can you do against him?

6. Your clients are not yours at all.

With dropshipping, you are essentially giving your customers to the supplier, because this is the essence of this system. It turns out that your supplier collects all your customer base. Moreover, he collects it for free, and will be able to start interacting with them directly at any time.

7. Costs are inevitable.

This disadvantage is not obvious if you are a novice webmaster. After all, that’s what they lure you into, promising “free” entry into dropshipping. And I agree that you don’t need money for a product, but who told you that advertising on the Internet is free. Or do you already know how to massively attract targeted free traffic? If yes, then why do you need dropshipping?

But it is also advisable to test the product in order to understand what type of advertising is best suited for it. As a result, it turns out that dropshipping is a scheme with investments, and possibly considerable ones.

And I'm not even talking about dropshipping from China. If you intend to take up this variety, then I advise you to think twice, since in addition to all of the above, there will be a couple more serious disadvantages.

Firstly, the timing. People are ready to wait for delivery from China, but only when they know that the goods are coming from China. But you will have a Russian-language store, and the fact that the goods will come from China may come as a surprise to the buyer. Will he be willing to wait? Not a fact.

Secondly, prepayment. With “Chinese” dropshipping, you must take an advance payment to at least cover the cost of the product and its delivery. But the entire Internet is accustomed to giving money upon receipt of the goods, that is, after its delivery. This is how most Runet sellers work and most buyers are accustomed to this. These are the default settings. Who are you, excuse me, that I would give you an advance payment? - he won’t say, but your buyer will think. And if you don’t clearly answer this question, then consider that you have lost a client.

As a result, we come to the conclusion that the dropshipping system is beneficial only to one party - the supplier. You buy goods from him, he doesn’t spend money on advertising, he’s not responsible for anything, plus he keeps your entire customer base.

Dropshipping is possible, but it can only be full-fledged if there is a large organized service, the departments of which will process orders, monitor the assortment, make payments to suppliers, and provide after-sales service. It is impossible for one person, especially a novice webmaster, to do this.

If you are dreaming and see yourself in dropshipping, isn’t it easier to do affiliate programs(PP)? After all, dropshipping is essentially the same thing. Affiliate programs also do not require goods, procurement, warehouse and logistics. But unlike dropshipping, affiliate partnerships have a number of powerful advantages, such as:

you don't need a store;
you don’t bother taking orders;
you are not responsible for quality;
you receive a simple fixed reward, without increasing the price of the product.

All you need is a computer and the ability to attract targeted traffic, the cheaper the better.

Everyone who earns income from the Internet knows very well:

It doesn’t matter what type of business you are engaged in on the Internet, the main thing is to be able to attract TRAFFIC.

Traffic is orders, clients, views, visitors, viewers, subscribers, etc. Traffic is people who will come to you. It doesn’t matter what you do, if you don’t have traffic, then there’s no point in anything, whether you have dropshipping, affiliate programs, or your own store.

to know, ;
understand what exactly you want, what direction you are most interested in pursuing;
study this direction(type of business), start building it slowly.

Take a look, you might find something for yourself.

A detailed analysis of the concept of “dropshipping”. What is it, what advantages and disadvantages does it have? this system mediation, and whether an entrepreneur should work using the dropshipping system in the domestic market.

Many current or future entrepreneurs are interested in what is dropshipping? After all, this word is heard more and more often in business circles and at various business trainings. It is mentioned in print media and online publications. And every businessman would like to study in detail the principle of operation of the dropshipping system, as well as learn all its advantages, pitfalls and features. This article is dedicated to all this.

All the main points of dropshipping will be discussed in detail below. An example is given, the pros and cons of working with this system are listed. It also talks about how to properly search for suppliers and what you will need for this business.

Dropshipping is...

Dropshipping is a business built on selling someone else’s goods through a website (most often an online store), but at a price specified by an intermediary.

An intermediary is an entrepreneur who works through the dropshipping system and receives a percentage of each sale.

A dropshipper is a supplier or manufacturer that sells its goods or products through intermediaries.

The system itself looks like this:

There is a supplier of goods (for example, children's toys). He sets his own prices for the products.
There is an intermediary - a person who created a website and sells other people's goods through it. He independently chooses the assortment and regulates prices. At the same time, he does not physically have the goods - everything is with the supplier.
The buyer goes to the intermediary’s website, sees the product he is interested in, pays and orders it. The order itself is redirected to the supplier, who sends the goods to the final buyer. And the intermediary receives his percentage from this.

Most online stores in the CIS now operate according to this scheme. Starting such a business is easy, since there is almost no start-up capital. The only thing you may need is to pay a specialist to develop the site, as well as pay for the domain name and hosting.

Everything else is very clear:

As an intermediary, you need to find reliable suppliers on foreign sites and decide on the assortment.
Create an online store, fill it with all the necessary content (product catalog, photos, descriptions, prices, characteristics).
Wait for the buyer to pay for the goods.
Place an order from the supplier and pay for it, indicating the buyer's address.
Take your percentage received from the markup.

The essence of the system is clear, now it’s worth talking about its advantages and disadvantages.

Benefits of dropshipping

It is thanks to its advantages listed below that dropshipping quickly gained and continues to gain popularity among domestic entrepreneurs.

More and more often there are online stores operating according to the described system. At the same time, buyers have no idea about it at all - and what difference does it make to them who sends the goods. After all, the main thing for the buyer now is reasonable prices and high quality.

So, the advantages should be highlighted:

No risk of losing your money. Because this business does not involve large financial investments, it is impossible to lose your savings in case of failure. Therefore, this type of activity is available to almost everyone. That is, you can try, and if something doesn’t work out, then there will be no financial losses.
Lack of warehouse or other places to store goods. The intermediary does not spend money on purchase or rental warehouse, since he does not physically have the goods - it is with the supplier.
No need to hire employees. Dropshipping does not involve hiring sales managers or couriers. All activities can be carried out by one person.
Competitive prices. This advantage stems from the absence of high costs and starting capital. That is, even the money spent on developing an online store or advertising will be returned from the first orders.
The ability to independently regulate prices, product range, and also work with several dropshippers at once. The intermediary sets the prices for the goods sold. The final price will depend on pricing policy competitors and market. The assortment can be diversified by working with several suppliers at once.
Variety of assortment. By working with several dropshippers, you can sell more than 200 items of goods. This is the main difference from the standard one, where the assortment is most often very meager due to the fact that its owner does not have the opportunity to order a lot of different products.
Competitive advantages. Many do not give customers guarantees and do not provide the opportunity to return goods. The dropshipper offers all this, which earns the trust of the buyers with whom the intermediary works.
Easy to do business. The responsibilities of the intermediary only include adding goods to the online store catalog, filling the site with the necessary descriptions, managing prices and advertising. Although some of these tasks can be delegated to specialists - naturally, if finances allow. And the dropshipper handles calls, packaging, delivery and other activities.

Disadvantages of Dropshipping

Every business has its drawbacks. Dropshipping is no exception.

The disadvantages include the following.

Responsibility. It is the intermediary who receives complaints with negative feedback from buyers. Low quality, defects, long delivery - this, of course, is the fault of the supplier. However, the buyer ordered the goods from the intermediary, which means there is demand from him.
Difficulties at the start. When starting to work using the described system, you may encounter difficulties associated with finding suppliers. They must be reliable, responsible, and offer only quality product And fast delivery. Also important criteria are guarantees and the possibility of returning goods.
Tax barriers. This drawback applies more to those intermediaries who plan to stock expensive goods and work with foreign dropshippers (for example, through Aliexpress). In Russia, the limit on parcels from abroad is now 1,000 euros per month. In Belarus, this limit is already outrageously low - 22 euros. That is, it is not profitable for Belarusian entrepreneurs to work through the dropshipping system with the same Chinese. However, there is an option to work with Russian suppliers.
Registration of individual entrepreneur or LLC. Not all suppliers make such requirements. However, practice shows that many still require documents confirming that the intermediary is a registered entrepreneur.
It is necessary to constantly be active. Resting on your laurels, doing nothing and simply taking the money you earn will not work. We must constantly be on the lookout for new suppliers, looking for new tools to attract traffic to the site. You need to work on the image of the online store, its promotion, popularity, and brand recognition.

Is dropshipping worth it?

It is difficult to answer this question unequivocally, since there are several important points here.

It is a fact that anyone can start such a business. After all, there is no start-up capital here. And the online store itself can be created completely free of charge.

Regarding how to properly configure it and work with it, this is discussed in detail in this article.

Only people with experience can tell you whether it is worth selling online using the system described here.

What is dropshipping? This is when you sit at home, do nothing, and the supplier does everything for you. You simply bring him clients that you get from somewhere. And then you get some part of the money for it. It would seem like an ideal scheme.

Yes, you can really make money this way, it’s not a myth. But here it all depends on the suppliers, on attracting traffic, on communicating with customers...

Domestic suppliers work mainly on a flow basis. Most often, it doesn’t matter to them whether the buyer liked the product or not - another fifth, tenth buyer will come... The dropshipper has a lot of people with whom he works, and it doesn’t matter to him whether he gets a client today, tomorrow or the day after tomorrow. That's why they have everything on stream. They don’t monitor service or quality, unfortunately.

It is not uncommon for applications sent by an intermediary to a dropshipper to be lost. Therefore, some who are just starting to work like this work either to zero or even to minus.

But there are still normal and adequate dropshippers with whom you can work without fear.

Alexey Dementyev is the owner of an online store, online entrepreneur, founder of the Makers community.

If you are just starting to sell goods online, then it makes sense to look towards working through the dropshipping system. But I don’t see any future prospects in selling goods. That is, this is the thing - to earn money now in order to earn money now. In the long term, I don't see what this could become.

Alexey Molchanov is the owner of MLS Holding.

Opinions on this issue Experienced Internet entrepreneurs differ. However, no one says that sales through the dropshipping system are not worth engaging in. On the contrary, if you want to quickly launch your first business, then this option is best suited. In the future, the money you earn can be invested in something more promising. For example, open a children's clothing or auto parts store. You can even choose a niche that has nothing to do with selling physical goods.

To summarize the article, it should be noted that dropshipping is good option business for beginners. It has a lot of advantages, is simple and does not require start-up capital. Understanding the system itself is not difficult, since it has already been described above. All you need for a business is a website (online store), reliable suppliers (dropshippers) and the desire to work. The rest will come with experience, and you can earn over 100,000 rubles monthly.

What is dropshipping – the essence, advantages/disadvantages of the niche + an example of how a business works. How to make money with dropshipping - 4 steps on the path to success + review of a proven product supplier Gearbest.

In 2019, only the lazy did not shop through online stores. This element has become so deeply integrated into our lives, although only a couple of years ago only a few people knew about remote purchases. What is a means for some is business for others.

In today's article we will tell you what dropshipping is. We will explain the scheme, the features of the niche + we will give an example of cooperation with one of the trusted suppliers of cheap goods for speculative remote trading, the Gearbest company. Those who want to earn money without getting out of bed, come here.

What is dropshipping: features + overview of the advantages/disadvantages of the niche

Despite the intricate word, there is nothing complicated in the scheme itself. For individuals who know about speculative trading in offline/online manifestations, dealing with dropshipping will not be a problem.

1) The essence of dropshipping + pros/cons

If we draw an analogy with more well-known tools, the closest thing to dropshipping are affiliate programs. Users make purchases by going to advertisers' websites through special links.

Dropshipping (in the original Dropshipping) is direct deliveries through an intermediary, who is an entrepreneur. The intermediate link searches for customers + organizes demand for products.

Important! The niche attracts an increasing number of aspiring entrepreneurs every year, because ideas are not required to implement start-up investment, and the apartment is not cluttered with goods from China. If you want to have competitive advantage, we advise you to start now.

The emergence of dropshipping dates back to the current decade, when Internet technologies have firmly taken root in the minds of ordinary people. In 2019, there are thousands of suppliers of goods from China, Europe and America, working according to an agreed business scheme

Advantages of Dropshipping	Disadvantages of the direction
There is no risk of losing funds. Due to the nature of working in business, a person does not invest personal capital from his own pocket. Therefore, if he doesn’t like the niche, he can exit at any time without the risk of losing money.	Responsibility. A person is the face of a company/online store through which goods are sold. If there is a delay, a defect, all the pokes go in his direction.
No home storage. The scheme allows you to sell products without even seeing them in person. Physically, the intermediary does not have any contact with the product, thereby maintaining personal space in the home.	A difficult start, namely, finding reliable suppliers with quality products and the ability to organize the return of goods due to defects.
Competitiveness. It follows from the availability of prices from suppliers. The goods bypass additional links, being sent directly from wholesale centers, and this makes it possible to set a large markup.	Tax barrier. The monthly influx of products from abroad to Russia, without additional tax fees in 2019, is limited to 1,000 euros. The rest is subject to taxes, and when collaborating with foreign dropshipping companies, this problem is especially acute.
Variety of assortment. By collaborating with 10-20 suppliers, a person can offer 1,000+ units of various products. Within a classic online store, the assortment is limited and is dictated by the scale of the business as a whole.	Case registration requirements. Foreign and even domestic dropshippers prefer to send products to representatives with documents. Registration of an individual entrepreneur/LLC imposes on a person certain responsibilities, taxes and unnecessary headaches, which people working via the Internet try to avoid.
Guarantees. Returning goods due to malfunction or defect is a common occurrence for dropshipping. Considering the absence of this opportunity in 30%-50% of online stores, the client’s preference is obvious.	Activity. Constantly attracting clients, searching for new, more profitable suppliers - all this will take a lot of time and be exhausting.
Simplicity of business. The responsibilities of the intermediary are updating the assortment, setting price tags and advertising. The rest is up to the partner.	Quality control. It doesn’t exist, because the person doesn’t even see what is sent to the other party to the transaction. As a consequence, when working with unscrupulous suppliers, a lot of negativity is pouring towards the mediator.

Travels online 2 working schemes for dropshipping. Following the first, the supplier looks for a client for the product, takes an advance payment, and only then orders the product from the supplier, leaving the markup in his pocket. The second option involves direct settlement between the client and the supplier, and then the latter sends the percentage to the intermediary’s card.

Pay attention! Manufacturers are initially interested in intermediaries, because this helps to promote the product with minimal marketing costs. Following this, feel free to knock out favorable conditions cooperation and low prices.

Prepayment is more reliable, but only 20%-30% of suppliers will agree to work under this scheme. Most prefer direct payment. If you do not want to follow the lead of foreign suppliers with an unverified reputation, you can find supply points in Russia. The option of direct trade from the factory is not excluded.

Example of work using the dropshipping system:

A man decides to start trading sports nutrition. Study the niche and identify with the top ones trademarks, in greatest demand.
Creates a page in social network or buys a ready-made one. He promotes it on the topic of sports nutrition, reaching 5,000+ subscribers and high audience involvement.
Looks for suppliers of goods with favorable prices and makes posts with links to the landing page (if hidden trading) or to the main trading site.
Buyers shop, and at the end of the month the person receives a percentage of sales.

Looking more closely, you can find similarities with affiliate programs, and this is true. Some entrepreneurs even manage to combine dropshipping with traffic arbitrage.

2) How to turn dropshipping into a stable business - step-by-step instructions 2020

Let's move on to creating a business plan. Here a person can go two ways - draw up a document on his own or order it from professionals. The second option will cost 20,000-40,000 rubles.

From the idea to the first profit from dropshipping, a person will need to go through 4 steps.

Step #1. Market research and niche selection

Ideally, the issue is handled by a marketing manager, but due to savings, the development will fall on your shoulders. You’ll have to delve into the jungle of marketing + read a couple of specialized books.

The structure above is a universal plan for analyzing any sales market. The frequency is once every 2-3 years, since the data obtained are of a fundamental nature. Before compiling, it is necessary to highlight the objectives of the study. More details in the table below.

Subject of research	Target Description
Market structure	Market structure Market conditions and capacitive research. Market assessment of trends in various niches.
Production products	Make an analysis of market segmentation for the share of the selected product for business.
Consumer	Product demand research. Studying the requirements of the target audience for the properties and price of products sold.
Price	Analysis of related areas with similar products within the scope of business distribution (country, region, world). Determination of the average pricing policy for low-grade and branded goods.
Niche	Research of market segments in order to identify less competitive niches.
Competitors	Researching the advantages of competitors in order to close your own shortcomings.

Research tools can be qualitative and quantitative methods - reviews, statistics, hypotheses, interviews, and so on. More details in the screenshot below.

Be realistic and research only those parameters that you have the opportunity to conduct objective assessment what's happening. The conclusions are important, not the process itself.

Step #2. Development of a product promotion tool

The most popular method of selling goods through the dropshipping system is an online store. There are also 2 ways here - do the project on your own or order from a web studio. The first is free, but takes a long time, the second is fast, but expensive. Start from your own capabilities.

Things to take care of:

general style;
page structure + hierarchy;
enticing hat;
contact details;
catalogues;
product card;
terms of delivery, payment + guarantees;
social connection;

A call back form and a quick purchase option are required. It’s easier to work through the designer, but the functionality of such projects is often limited to paid plans, and this is not good for marketing.

Best website builders:

Using constructors is a quick solution to the problem. Next, you need to promote your online store, and for this purpose you use integrated approach from paid and free promotion tools. More details about promotion a little later.

In addition to the online store, you can also use alternative tools for selling products through the dropshipping system. More details in the table below.

Alternative	Description	Difficulty in debugging (out of 3 ★)
Landing page	A stripped-down version of dropshipping, where a person advertises 1-2 varieties of products, or the brand as a whole, through a one-page website. The advantage is the narrow sharpening, thanks to which it is impossible to pass by the products being sold.	★★
Social media	The tool has an advantage in terms of promotion, since it lures target audience on Instagram, for example, it is cheaper than on a regular website on the Internet. Disadvantage: low payment convenience.	★★
Specialized sites	Similar to one-page websites, but the process is organized through an intermediary who takes a percentage of the products sold. One of the advantages is the opportunity to order website promotion at an affordable price. The downside is commissions.	★

Niche testing will determine the level of demand for the product. If the audience is wary of the product and is reluctant to purchase, switch to another supplier or product. Don't be afraid to experiment. Wordstat.yandex.ru will help identify trend keys in product segment and will protect against the realization of low demand.

Step #3. Search for suppliers and conclusion of contracts

This point is considered the most important in the work of a dropshipper, because the whole essence of his work lies in indirect cooperation with the supplier company. If you make the wrong choice, there is a high risk of being deceived, or, even worse, being embroiled in a major scam.

You can see the most popular suppliers in the table below. The last column is responsible for the potential profitability, which is formed based on the difference between the initial cost from the supplier and the competitive markup from the dropshipper.

Category	Website	Peculiarities	Extra charge
Chinese	https://www.dx.com/	Extensive range in 30+ categories. Dropshipper's personal account.	4%-80%
	https://www.chinavasion.com/	More than 45 categories with 5,000+ items. Favorable conditions for wholesalers.	3%-50%
	https://www.dhgate.com/	Buyer protection, coupons, discounts and other goodies that increase the flow of traffic.	7%-100%
Aggregators	https://optlist.ru/	Russian wholesaler uniting 50+ suppliers from Russia and Europe. It has points in all major cities of our country.	3%-60%
	https://supl.biz/	Platform for big business. The site constantly has more than 700 positions in 30+ directions.	5%-100%
	http://www.aplix.ru/	The company is a federal partner of Russian Post, and therefore delivery will cost several times cheaper.	10%-300%
Retail	https://www.alibaba.com	One of the top suppliers of retail products. It has 10,000+ items of goods in 100+ directions.	10%-400%
	https://aliexpress.com	I know everything about the site. The main supplier of cheap products from the Middle Kingdom.	2%-150%
	https://ua-tao.com/	Another retail giant with 5,000+ lots and 50+ areas of work.	4%-120%

There are from 1,000 to 10,000 retail purchasing points for dropshipping online. The whole question is how safe they are. We advise you not to chase cheapness and sky-high margins, but to give preference to proven companies.

Step #4. Resource promotion and first sales

Creating an online store is 10% of the work. The remaining 90% is promotion through the Internet. The work can take up to 2 months, but if you use combined methods, there is a chance to invest in 25-35 days.

Paid website promotion	Free website promotion
Purchasing links	Registrations in social bookmarks
Publications in articles	Accounts in ratings and directories
Contextual advertising	Publications on free message boards
Banner type advertising	Articles, press releases on other sites according to the exchange scheme
Advertising on forums/blogs	Thematic exchange of hyperlinks
Posting press releases and articles on thematic resources on the Internet	Activity on forums
SEO promotion	Unique articles on your personal website
SMO promotion in social networks	Mailing
Automated systems - axle boxes	Publications on a personal blog/forum

For paid methods, the disadvantage lies in the time spent, and for paid methods, the disadvantage lies in money. For optimal performance, use a 3-3 combination. Three ways to advance from both directions.

As the popularity of the online store increases, sales growth will become proportional. All that remains is to monitor the timeliness of deliveries from the partner company and keep the site in search engine trends, periodically investing in an advertising campaign.

A detailed description of the term is provided. Top suppliers of this year:

About what Gearbest dropshipping is: site features + work algorithm

We have already stated that there are many platforms for purchasing goods through the dropshipping system, but you can only trust 10%-20%. If we take into account Chinese suppliers, and this is relevant, because prices for goods in China are always lower than ours, the number of candidates will be reduced even more.

Gearbest is a Chinese online store with warehouses in Russia. The second part is especially important, as it allows customers not to languish for months waiting for goods, but to receive them within a week by Russian Post or other convenient delivery service.

What you can trade through Gearbest:

household/electronic/computer equipment;
construction tools and supplies;
vehicle accessories;
lighting equipment;
jewelry, watches, bags, shoes and other women's items;
toys and hobby goods;
everything for home/garden;
clothing for everyday use, for sports and tourism.

On the website there are 15+ product categories, and the range is updated with new interesting things every month.

Important! Prices on Gearbest are lower than on Aliexpress and other top Chinese sites. The reason is availability large quantity goods in the warehouses of our state. Working without intermediaries reduces the cost, allowing the dropshipper to make a higher markup.

The disadvantage of the site can be called no mandatory refund for problems with the product. In order not to risk your money, you will have to buy insurance. For those who are accustomed to shopping on Alik, where the cost of each product is easy to reimburse, such a sales option can scare away 15%-25% of potential customers of an online store, which is not good for dropshipping.

Algorithm for making money on Gearbest:

We have described a simplified type of cooperation, but if you want to strictly adhere to dropshipping, you will have to change the algorithm a little. Registration, purchase and sending of goods to someone else's address– this scheme will help to completely hide the supplier, making you the main player in the online store.

How to buy products on Gearbest:

Registration + filling out data in your personal account.
Looking for required item through the search bar or through the categories in the left panel.

To speed up the process, it is rational to use built-in filters.

The number of screening parameters provided is impressive even for a sophisticated buyer. Each lot has a rating (1-5 stars) and the number of people who added the item to their favorites.

“Favorites” is an item that provides quick access to the product. It is good to use in dropshipping, when a person has expressed a desire to purchase an item through, but has not yet made an advance payment.

Before purchasing, the user has the opportunity to study the product card. It is no different from analogues from other Chinese suppliers - price, warehouse, color, and other typical parameters corresponding to the product category.

Scrolling down, you can come across a lot of add-ons. One of the most important things for online stores is the ability wholesale purchase products. After sending the application for consideration, a company representative will contact the user and clarify the details of the wholesale order.

Next, we complete the purchase using the form.

We indicate the delivery method.

And we make payment for the lot.

50% of products have free shipping, but in this case, the shipment is made without a tracking number, and this is a risk. To save up to 90% on purchases, it is rational to use cashback. This will allow you to increase profitability even more without increasing the price tag for the products.

The Gearbest platform is easy to use + has a Russian version of the site, which makes it convenient for any novice dropshipper to collaborate with. If you don’t know where to start, then this store from China is at your service.

Useful article? Don't miss new ones!
Enter your email and receive new articles by email

Selling without holding the product in your hands is possible and there is even a name for this phenomenon - dropshipping. This type of activity is common throughout the world. It is used by many small or medium-sized online stores and private sellers. This business model is especially popular when it comes to goods such as gadgets, clothing, shoes, accessories, souvenirs, and cosmetics.

Dropshipping system - what is it?

Dropshipping comes from two English words drop shipping, which translates as “direct delivery”. The essence is simple - there is a product and there is a buyer, but the product is sold not directly, but through intermediaries, dropshippers.

The main highlight of the scheme is that the intermediary first finds a buyer, and only then purchases the goods from the supplier. The supplier can be either the manufacturer itself or a wholesaler or distributor.

In this case, the supplier takes care of the delivery, the dropshipper only indicates to him where the purchase needs to be sent.

Cooperation under the dropshipping scheme allows you to open an online store even if you do not have a lot of money. This business is attractive primarily because it requires almost no investment. By ordering a product, the dropshipper is guaranteed to receive his profit. Earning money from dropshipping depends on what margin you set. This is also convenient because suppliers often provide good discounts to the dropshipper.

How to start working on the dropshipping system

To start dropshipping you will need very little:

Find and establish contact with the supplier producing the product. Conclude an agreement with him for this type of activity.
Open and design a platform on which the product will be promoted. Display your products there.
Promote your offers on the Internet and find buyers.

Payment by the final buyer of the goods can be carried out according to two schemes. In the first case, the prepayment is made directly to the dropshipper, who keeps the markup, and sends the remaining amount to the supplier indicating the delivery address of the purchased product. In the second, payment is made to the supplier directly, and he then transfers the markup to the intermediary.

We are looking for suppliers

Before you start working with the dropshipping system, it is important to decide which product you prefer to work with. This is where the search begins for a supplier who will be ready to provide favorable conditions for you.

An excellent option if you can find a supplier who offers an exclusive product.

There are resources on the Internet that contain many offers from different suppliers, sorted into categories. In addition, on the websites of many online stores there are offers for this type of cooperation. If such a clause is missing, there is always the opportunity to contact the management and offer them such partnership conditions.

Dropshipping with China

Dropshipping with China, as well as with suppliers from Europe and the USA, has become especially popular recently. On auctions, message boards and other online platforms you can find many advertisements where they offer to purchase goods, and promise delivery in a few weeks. And many Internet users agree to this.

The reason is that many do not speak foreign languages and do not want to understand the intricacies of ordering on foreign sites. In this case, it is more convenient not to waste time, but even to overpay the intermediary and get the desired item.

Of the sites that are well known, it is worth mentioning aliexpress.com, tinydeal.com.

How and where to sell

Making sales is not as difficult as it seems at first glance. The most common methods:

Sell at auctions or message boards, for example, on eBay.
Open a group on a social network and sell goods through it;
Open an online store using the dropshipping system.

Moreover, it is possible to launch an online store either on your own website or create it on one of the dropshipping platforms that offer similar services on the Internet. Such services bring together both suppliers and intermediaries in one place. Just select the supplier you like from the catalog and literally with a couple of clicks you will have a ready-made showcase of goods at your disposal.

The whole process step by step using the example of an auction:

dropshipper creates a lot;
accepts the order;
receives payment from the buyer;
V Personal account buys goods on the manufacturer’s website;
indicates the delivery address of the final buyer;
the supplier sends the goods;
The dropshipper tracks delivery if desired.

As you can see, at first glance there are almost no difficulties. You don’t even need to leave your home to control the entire process. However, this system has both advantages for the intermediary and pitfalls that should be taken into account in advance.

So, why is dropshipping beneficial for the intermediary?

First of all, it's not needed initial capital, in order to buy a batch of goods in advance, and therefore there is no risk of losing large amounts of money. Besides:

All you need to work is a computer and Internet access.
There is no need to maintain a warehouse and store products there. In this way, the product does not stay stale, does not lose relevance, and does not deteriorate. And the free money can be spent on advertising and developing your business.
There is no need to hire additional employees to process orders, pack and ship goods.
Delivery, by agreement, can be carried out on behalf of an intermediary - this way, your brand, if any, will be further popularized.
Cooperation can take place with several suppliers at the same time, and accordingly the dropshipper has the opportunity to offer a huge and varied range of products.
Based on demand and the season, it is possible to quickly remove goods that are not in demand from the display and replace them with popular items.

And, importantly, you can engage in this type of activity in parallel with your main job.

This model is also beneficial for the supplier, since it increases the sales network and increases sales volumes. Other benefits for the manufacturer include the following factors:

no need to spend money on product promotion;
there is no need to waste time searching for retail buyers and discussing with them all the nuances - payment methods, delivery.

Disadvantages of this model for a dropshipper

First of all, your trading platform you need to promote it so that it ranks first in search results, otherwise buyers simply won’t notice you. And this will require significant funds. Other disadvantages:

It is difficult to track the availability of goods from a supplier, especially if there are many suppliers. It may turn out that the ordered product is not in stock and then the promised delivery time may be missed.
The product may be delivered defective or arrive at the wrong time - the dropshipper will have to deal with the problem.
If the buyer does not pick up the goods, the shipping costs are borne by the intermediary.
Not every buyer wants to overpay, and since today it is easy to contact suppliers directly, he can order goods directly from them.
When ordering several goods from different suppliers, it is not possible to send them in one parcel - and this is an additional expense for the buyer, which few people will like.

The supplier may also be tempted to work directly with the clients you find at any time.

How to succeed in this business

There has been a lot of competition in the dropshipping industry lately, and therefore it is important to properly think through a strategy for promoting the product and attracting new customers. If your plans to succeed in this type of activity are very serious, then you will have to spend money, sometimes quite a lot, on promoting your resource.

Creative, non-standard approach to promotion and finding clients is a big plus.

It is also important on any platform, regardless of whether you are selling at auction or on your website, to present the product colorfully, to make detailed description and provide it with photographs. You can also copy the description from the supplier’s website.

How to accept payment

Since trading occurs exclusively via the Internet, if you have to deal with cash, it is very rare. Basically, calculations are made through systems electronic money: Webmoney, . When working with foreign auctions, the PayPal payment system comes to the rescue. Bank cards and transfers using Western Union will also come in handy.

Save

Dropshipping is new way doing business via the Internet. The intermediary sells the goods at its 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” translated from English means “direct delivery”.

This is a new way of doing business in which the sale of a 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 in its own name or under its own brand and accepts payment from the buyer.

Afterwards, the dropshipper places an order (provides the buyer’s coordinates, for example, Moscow) and pays for it from the supplier. The manufacturer sends the goods to the specified address to the direct buyer.

What is the supplier's benefit?

From a marketing point of view, such a cooperation scheme is beneficial to the supplier in many aspects.

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

Secondly, as soon as a demanded product appears on the market, it is instantly distributed. The main management is to process and dispatch incoming orders in a timely manner.

Thirdly, there is no need to have and maintain retail 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 unnecessary transportation costs, etc.

Dropshipper's 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 virtually risk-free.

Payment for goods is made only after the intermediary receives funds from the buyer, that is, there is no financial risk, although it is often 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, in addition there will be promotion of its own trademark intermediary.

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

Dropshipper is not sales representative, so there are no obligations to the manufacturer. Only after payment of the order appear economic relations, so anyone can run such a business.

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

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

Getting started

It is necessary to make your business legal, that is, register an individual entrepreneur (in accordance with Federal Law No. 129 of 2001 (as amended in 2016)). This is especially important for Russian suppliers who may request your details.
For foreign suppliers it is not important.
Important! You need to find a website of a serious and, most importantly, conscientious supplier, who has low prices for goods, both wholesale and retail. There must also be postal and courier delivery.
You should make a trial order, and all the nuances of cooperation, payment terms (in what currency payments will be made), and return guarantees are discussed cash, delivery times, online tracking of parcels, etc.).
Important! If payment with the manufacturer is made 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 location).
You need to create ready-made template or purchase one that is already working online trading platform, that is, the site. The site should have: form feedback, a catalog of offered goods, a form for registering an order, a streamlined payment scheme.
Important! The site should have options for accepting payments, the same as those of the manufacturer. After all, if, for example, you transfer funds from a bank account to, you will have to pay interest.
It is necessary to carry out work on selecting and testing the most popular product categories. Conducting such research is simply necessary to gain experience in implementation.
You should engage in advertising and promotion of the site to attract buyers (often, advertising is used in Google Adwords or Yandex Direct - that is, advertising in search engines, also, advertising on social networks - the so-called SMM). Internet promotion can be entrusted to specialized marketing agencies, which can guarantee a certain sales result for a certain period (high).
The buyer purchases products on the dropshipper’s website, transfers payment to him, with shipment from the manufacturer. The dropshipper accepts payment and transfers it to the supplier, minus his commission.
The manufacturer processes the order, sends the package to the addressee, the coordinates provided by the intermediary.

Supplier selection criteria

The products offered by the main seller must be competitive and have a stable demand for trading market. Market research should be conducted.

Important: The supplier must guarantee a refund in case of defective or non-delivery of the order.

There may be several intermediaries in the sales sphere; the main condition in choosing the main supplier is an acceptable selling price for the product. After all, price will be the main element in the system for promoting the products offered.

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

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

The methods for transferring funds to the seller must be the same as on the intermediary’s website.

Dropshipper operation scheme

Positive aspects of the scheme:

Not required large investments for the purchase of goods, rental of warehouse and retail premises, salary payments.
The ability to offer the buyer thousands of different products.
To carry out trading operations, you only need access to an Internet resource.
The intermediary will earn income from the difference in cost.
The goods will be sent by suppliers; there will be no need to deal with postal shipments.
There is no need to pay for shipping, this is especially true if parcels are sent worldwide.
It is possible to cooperate with several suppliers at the same time.

The work scheme has its negative sides:

The need to accept payment and then transfer funds to the supplier. All transfers will be carried out through online services, which usually charge their own percentage for this.
If the product is not sent to the buyer or it is defective and does not correspond to the order, then the intermediary will have to answer.
It is impossible to influence delivery times, and compliance with them will be guaranteed by the dropshipper.
The packaging and safety of the ordered products also depends only on the supplier.
Once the order is transferred to the manufacturer, it is very difficult to track the success of the transaction.

To attract the largest number of dropshippers, large online trading magnates create the most favorable working and cooperation conditions for them.

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