Introduction To Dropshipping | Beginner’s Guide

Welcome to this Introduction to Dropshipping for Beginners; it’s true that so many people are making money online daily with Dropshipping while others are still trying to figure out what dropshipping is and how to get involved.

Well, if you are of the latter; I’ve got good news for you because, in this article, I will be showing you a detailed guide and introduction to dropshipping.

At the end of this extensive blog post tutorial, you will have all the necessary information and knowledge required for you to start your own dropshipping business today without much help. You will be able to run a successful dropshipping business by yourself.

With that being said, let us get started.

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What is Dropshipping? (How Does Dropshipping Work?)

Let’s take a good look at this image below and observe the details in it. Now, tell me what you understand from it?

what is dropshipping
Introduction To Dropshipping | Beginner's Guide 1

Dropshipping can be explained in just four simple steps, and if you look closely at the image you will understand it.

In Definition: Dropshipping is an order fulfillment method that does not require a business to keep products in stock. Instead, the store sells the product and passes on the sales order to a third-party supplier, who then ships the order to the customer.

What this means is that as a dropshipper, you do not keep or store the products you are selling, rather, you are a portal where customers come to transact for a product.

They pay you for the item, you pay the product owner and the product owner will ship the item to the customer directly on your behalf.

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Dropshipping Requirements

Well! surprisingly, the things you need to start a dropshipping business are very few and very affordable in my opinion. Literarily, anyone can afford to start a dropshipping business without spending much.

Here are the main requirements to start a dropshipping business:

  • Domain and Hosting. (You can get that here…)

  • eCommerce Store
  • Reliable payment system for your store
  • High ranking Niche
  • Product Supplier and Sourcing
  • Traffic

Once you have these six (6) things, you will be on your way to becoming unstoppable in the dropshipping industry.

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Who Is a Dropshipper?

A dropshipper simply is someone who manages products on his/her own online store without owning the product or even storing these products physically but coordinates the transaction of these products between the buyer and the manufacturer of these products.

Benefits of Dropshipping (Advantages)

There are lots of benefits to starting a dropshipping business; I will list only five (5) of them here:

  • It is Very Easy To Start
  • Low Startup Capital Required
  • It is Easy To Manage
  • It is Easy To Grow
  • It has a lot of Flexibility

Now, let’s take a deeper look into each of these things for better understanding.

#1. Dropshipping Business is Easy to Start

Starting a dropshipping business is as simple as ABC; if you are familiar with my previous article on How To Start A Blog Successfully, you will realize that the same process applies here, except that you will need more tools at your disposal.

To get those tools at your disposal, all you need is to read this article on Yakkyofy and How It Works and then compare it with this Dropified Dropshipping Tool to best understand how easy it is to start a dropshipping business.

It is very easy to start a dropshipping business due to the low start-up costs; especially when compared to other types of retail businesses. You will never worry about product stocking or shipping because everything will be done for you automatically without stress on your part.

#2. Dropshipping doesn’t require much capital to start

You can actually start and run a dropshipping business right from home using just your laptop; There’s no need to make any high-level investments. Where you might be required to make a little expense will be on advertising, which you can learn how to do effectively with our free tutorials on our marketing page.

As your business grows, the money you spend will keep reducing because of the authority of your brand at the level; That is why you need to take your time and grow your brand using the right tools. It might cost you a little money and time to build, but the turnover will be very massive and profitable.

#3. Dropshipping is Easy to Manage

Dropshipping is very easy to manage because there are so many tools that are built to help you run a successful dropshipping business without breaking a sweat. I made mentioned some of these tools in my previous articles on Yakkyofy and Dropified, and you should check them out to learn how easy these tools make it for you to start and manage your own dropshipping business.

#4. Dropshipping is Easily Scalable

As a dropshipper, you can easily scale up your dropshipping business without changing your business model very much; Although you will have to put more of your attention and strategy into sales and marketing to ensure your fast growth.

Unlike a brick and mortar business type, you can easily scale your dropshipping business by just hiring more marketing power to boost your sales, you do not need to buy a new building or warehouse or do anything physical at all, it’s all a click away for you to scale.

#5. Flexibility

As a dropshipper, you can easily work from home or anywhere else with little more than a laptop, an internet connection, and your brain. That convenience and flexibility are what make dropshipping very unique and tempting for so many people, making them want to be part of the dropshipping community.

Disadvantages of Dropshipping

Dropshipping does have its disadvantages, especially when you are not utilizing the right tools for your business. Here are a few things you also need to know about this business before you start your own dropshipping business.

1. Having a Slim Margin

When getting started as a dropshipper, you may experience these low margins which can be very discouraging at first, but with the right tools and knowledge, you can easily overcome this limitation.

2. Order Processing 

Dropshipping is actually very straightforward, but if you do not have the right tools to help you out, especially if you are sourcing products from multiple suppliers, you might run into some problems. That is why we recommend you use tools like the Yakkyofy or Dropified Solution to help you out.

3. Lack of Control

Not having full control of things like the product quality and delivery is a bit of a disadvantage; In that case, you have to make sure to work with a more reliable supplier to ensure your brand is protected in those areas where you can’t control.

4. Customer Service can be Challenging

It can be challenging sometimes to regulate customer service especially when an order goes wrong or when a supplier fails to perform at the right time. If you are in full control, you should be able to regulate these types of issues but in science, you are not in total control, it is wise to carefully pick a reliable supplier to work with.

How to Choose the Best Dropshipping Suppliers

Having the best dropshipping supplier is a huge weight lifted in your success as a business.

Here is our recommended checklist of questions you should answer before working with a supplier:

  • Can they handle returns or damaged products?
  • What is their order fulfillment time, from the point of sale to delivery?
  • Are they good with customer support?
  • Do they have a quality order rating?
  • Do they offer fraud protection?
  • Can you find real reviews or references online?

RECOMMENDED: Are you Looking for a Quality Supplier? Our Recommended Top 2 Dropshipping Suppliers are Yakkyofy and Dropified

Dropshipping FAQs

Here are some simple answers to frequently asked questions about dropshipping:

What is dropshipping and how does it work?

Dropshipping is an order fulfillment method that does not require a business to keep products in stock. Instead, the store sells the product and passes on the sales order to a third-party supplier, who then ships the order to the customer.

What this means is that as a dropshipper, you do not keep or store the products you are selling, rather, you are a portal where customers come to transact for a product.

They pay you for the item, you pay the product owner and the product owner will ship the item to the customer directly on your behalf

Yes, dropshipping is legal.

What are the benefits of dropshipping?

There are at least five good reasons that almost any eCommerce retailer should consider dropshipping.
1. Startup risks are very low
2. Lowers product costs
3. Little or no storage and logistics costs
4. A broad product offering
5. Business Flexibility

Is dropshipping profitable?

Yes, dropshipping is very profitable, and also with a low-risk business model that allows you to sell products to your customers without incurring huge running costs as a wholesaler would have.

Do I need to register a business entity to dropship?

Yes, you’ll need to register your business once you start to make sales, but there is no rush to do so until you start making them consistently. This is because the majority of payment providers require you to prove that your business has such credentials.

Is dropshipping allowed on eBay?

Yes, dropshipping is allowed on eBay.

Is dropshipping allowed on Amazon?

Yes, dropshipping is allowed on Amazon.

What are some dropshipping product ideas?

If you’re interested in starting a dropshipping business but don’t know where to start, here’s a list of product ideas for inspiration:

1. Baby Products.
2. Auto parts.
3. Pet Supplies.
4. Watches or Jewelry.
5. Toys.
6. Fashion Wares, etc.

Do dropshippers ship internationally?

Yes, they do, but it all depends on the supplier you are working with.

Getting Started With Dropshipping

To Get Started, I do recommend you read my post about Yakkyofy and Dropified. These guides will help you start a Dropshipping store without spending much and also without having any experience. They are designed to be beginner-friendly.

Remember that you don’t need to have years of business experience to open a dropshipping storefront, all it takes is your desire and your total focus and attention.

Better yet, there are numerous resources that make dropshipping easier than ever before. You can have absolutely zero business experience and still easily make a profit. You’ll need to learn the ropes along the way, and it will be challenging at times, but it’s more than worth it.

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I have been dropshipping for over 4years now and It has been a worthwhile journey. Dropshipping can be a highly useful tactic when applied correctly. Make sure you are subscribed to this page as I will be giving you a lot of useful tips to achieve huge success in dropshipping.

When starting out, it’s necessary you build an SEO checklist that will help you grow into a big brand. All established companies already have a healthy flow of traffic and don’t need to worry as much about establishing their brand.

That’s why dropshipping makes a great complement for most experienced eCommerce companies.

Let me know your question or contributions in the comment section. Also, I’ll appreciate you sharing this post right now on social media!!

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