What is a Dropshipper, How it Works and the Benefits

One of The most suitable part time job for college students is opening an online business. By doing business online, you will not be bound by time or contracts like in a company.

That way, you don’t need to be afraid of not having time to study and complete assignments. Although this online business idea is suitable for college students, unfortunately the problem is in the capital to do business.

Therefore, you can try doing business with the dropship system. Well, for those of you who don’t understand what dropship is and how it works, just take a look!

What is Dropshipping?

What is Dropshipper

What is Dropshipping?

Dropshipping is one method of buying and selling online where people who register as dropshippers (retailers) both individuals and business entities do not stock products.

The products sold are obtained from collaborating with brands or companies that own these products.

In short, an online buying and selling method in which a third party will forward goods from the producer to the customer or consumer by only providing product details.

From stock to packing of goods, it is the producer’s business. So the dropshipper as a dropshipper only does promotional marketing. If someone buys it, then the manufacturer will be informed of the details of the order.

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Terms in Dropship

Just like the reseller buying and selling method, for the dropship selling method there are terms used. Well, here are the terms:

1. Dropship

What is Dropshipper

Dropship

Droship is an act of a business where someone does not need to own or stock their own products. All products sold are the property of another party, namely the supplier.

2. Dropshipper

What is Dropshipper

WL

Dropshipper is a term for actors who use the dropship business system. His job is to market or promote products sold by suppliers using their own brand names.

3. Resellers

What is Dropshipper

Resellers

Reseller is a business method where he will sell supplier or dropshipper products by stocking products and using their own capital. Of course, by using your own brand name.

4. Suppliers

What is Dropshipper

Supplier

While suppliers are parties, both individuals and business entities that supply raw materials, resources or products needed by individuals (customers or consumers) and business entities to be used as products or services.

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Advantages of Being a Dropshipper

Now, after understanding what dropship is, you must be wondering, what are the benefits of using the dropshipping system. Well, if you’re curious, just take a look!

1. Easier and Flexible

What is Dropshipper

Easier and Flexible

The first advantage of course you will be easier to make sales. Why? Because, you only need to market or promote the supplier’s product.

In addition, it is more flexible because you can run this online business anywhere and anytime. You don’t even need special skills to become a dropshipper.

2. Marketing is still extensive

What is Dropshipper

Marketing Is Still Extensive

The next advantage of marketing becomes more broad or unlimited. Yups, by becoming a dropshipper you can also sell abroad. That way, there will be many good reviews about the products you sell.

3. Benefiting Both Parties

What is Dropshipper

Benefiting Both Parties

The next advantage is that it benefits both parties. Yups, as a dropshipper you certainly don’t need to spend big capital to build your own business.

In addition, dropshippers can also determine the price of their own products to be higher than the supplier’s price. While the advantage of suppliers is that their products will be marketed to a wider range quickly.

Also Read: 5 Skills You Must Have If You Want To Succeed!

Disadvantages of Being a Dropshipper

If there are advantages, there will be disadvantages too. Well, here are some disadvantages of being a dropshipper that might be your consideration.

1. Strict Market Price Competition

What is Dropshipper

Intense Market Price Competition

Because the supplier opens dropshipper for anyone, of course you will have many competitors too. Although the reach to market products is wider, of course you will find competition in the market.

One of them is market price competition. Moreover, even a slight price difference can be considered by customers to buy. Therefore, you must research, survey and be wise when deciding to give a selling price.

2. Lack of Security

What is Dropshipper

Lack of Security

The next drawback is the lack of security. This means that the dropship buying and selling system requires checking that the customer’s money has been received before the product is sent.

This is done so that transactions are guaranteed and as a dropshipper you don’t feel cheated. In other words, the risk of being cheated by customers who claim to have paid is greater.

Unless you sell it in an online shopping application where the customer must complete the transaction first, then the product is sent.

3. Supplier Selection Must Be Careful

What is Dropshipper

Supplier Selection Must Be Careful

Lastly, the weakness of dropshipping is that you have to be careful in choosing a supplier. If you choose a bad supplier then your brand assessment in the eyes of the customer will be bad too.

Given that building a business, you need customer trust. In addition, there may be misunderstandings about the products purchased by the customer. So you need to pay attention to the quality of the products being sold.

Also Read: How to Create a PayPal Account Without a Credit Card

Tips for Becoming a Dropshipper So that Turnover Explodes

If you have considered becoming a dropshipper, don’t forget to follow these tips to become a dropshipper.

1. Make sure to sell quality products

What is Dropshipper

Make Sure to Sell Quality Products

The first tip is to make sure the supplier sells quality products. Do not choose suppliers who often sell products that have product defects.

In addition, make sure you sell products that are durable in use. So that customers feel confident that you are selling a quality product.

2. Establish Good Relationships with Suppliers and Customers

What is Dropshipper

Establish Good Relationships with Suppliers and Customers

Furthermore, you also have to establish good relationships with suppliers and customers. By increasing your friendship, you also increase your sustenance.

By building a good relationship this will certainly increase the high credibility between suppliers and traders.

3. Have Knowledge About Products Sold

What is Dropshipper

Have Knowledge About Products Sold

When you become an online business, you must know the details of the goods you are selling. Given that there will be customers who ask questions about the products you sell.

At least you need to know the functions, advantages and important details. That way, you won’t look like you don’t have control over the product you’re selling.

4. Create the Right Sales System

What is Dropshipper

Create the Right Sales System

To be successful in dropshipping, of course, you need the right sales system. Such as promotions, payment methods, testimonials, discounts and so on.

With the right sales system, this will certainly make your brand look professional and of high quality. So it’s easier for you to brand.

So, that’s it, guys, the explanation about dropship. Oh yeah, don’t forget to share the article with your friends, okay?

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