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Frequently Asked Questions About Dropshipping
Below is a list of common questions about dropshipping. If you have a question which isn't answered please contact us and we will be happy to help.
Question: What is dropshipping?
Answer: Dropshipping can also be called 'Direct Dispatch'. Traditionally running a business selling products has meant: sourcing and then buying stock in bulk, storing it and then hoping you manage to sell it all. However dropshipping means you don't actually have to buy your stock until you know you have already made the sale! This method of selling works for online or offline mail order.
Dropship Chain:
1- You find a dropshipper (the supplier of the goods)
2- You advertise their stock under your own business name
3- Once you have a sale, you purchase the item from the dropshipper
4- The dropshipper then posts it to your customer
Question: Where do I make a profit then?
The profit margin is the money left over from your sale after you've ordered with the dropshippers and taken away any other cost of sale (like paypal fees). This is your profit to keep!
Question: What do I need to be a dropshipper?
Answer: All you really need is regular access to a computer and the internet. Also make sure the tax man knows what you are doing, IE become self-employed. Then you need to create an account on our site and we have all the information you will need!
Question: How much will it cost for me to start dropshipping?
Answer: You can actually start dropshipping with no inital investment. If you want you can just start by signing up with a dropshipper and listing a few items on eBay and seeing what happens, all it will cost are the listing fees!
Question: What are the advantages of dropshipping over buying in bulk?
Answer:
- Little initial investment
- No stock to hold
- Very low risk
- Spend less time packing, more time developing
Question: What are the main problems?
Answer:
- Little control over how quick a product is delivered
- Have to rely on another company to post the product safely
- Don't really know the quality of product unless seen
- Non-deliveries are sometimes hard to deal with
