It is quite possible to open a business in China without investments. The name of such a business is drop shipping. From English, this word is translated as “direct delivery”. The idea of business is that the entrepreneur acts as an intermediary between the buyer and the seller. The scheme is simple: the entrepreneur orders the necessary goods on his behalf, and sends the goods to the buyer’s address. Thus, an entrepreneur can work without leaving home and without spending his money while working on prepayment. All that the entrepreneur takes is organizational issues. He will need to register on the site, if necessary, communicate with the seller, track the delivery of goods, etc.
The advantages of drop shipping are many: an entrepreneur does not risk his own funds, does not need hiring employees and can alone cope with the amount of work. In addition, for effective work, he only needs a computer and the Internet.
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The main disadvantage of this business model lies in external factors: firstly, parcels from China are delivered long enough; Secondly, there is a risk of loss or delay at customs. Not every buyer agrees to wait that long. Also, it should be borne in mind that the scheme is long-standing and proven, that is, and there is a high risk of encountering competition. Despite this, drop shipping remains a fairly profitable business, and the margin for goods is from 10% to 100%.
What do you need to start a business on drop shipping?
- Find suppliers. There are thousands of them on the Internet, but it is not so easy to choose suppliers. Among all the variety it is still necessary to find the most reliable and suitable for the quality and price of goods, delivery conditions, assortment, etc. Most often, large Internet shops are selected as providers, which have a huge assortment and sell it at wholesale prices. Now you can find online stores that are specifically designed for drop shipping (Banggood.com, TinyDeal.com, DX.com, Tmart.com, BuySKU.com, LightInTheBox.com and others). Earn with these sites is even easier because they often provide partners with various bonuses. You should approach the choice of the supplier responsibly because you are responsible for the quality of the goods and their delivery to the customers.
- Contact the suppliers. To do this, send a letter to the support desk indicating that you want to work with them on the drop shipping system. With a probability of 95%, you will get a positive answer. The main thing that you should pay attention to at this stage is a clear idea of what products you will offer to customers, and how you will advertise the product. Contact with suppliers is necessary so that when packing an order they do not use the logos of their companies. After all, it is advisable for the buyer not to know who actually purchases the goods.
- Select a product. What to decide on the direction, go to the usual popular online stores and see what products are in demand. It is advisable not to work with electronics – with it much more problems with marriage and return. Therefore, an important criterion for choosing a product is the minimum probability of a return. You can risk and offer customers something interesting, unusual. You can also earn on exclusives.
- We choose the way of advertising. You can create a group of your online store on social networks. Having spent several thousand on active promotion of goods through accounts, you will quickly find buyers. Do not forget and for free advertising options – put the goods on the bulletin board and auctions. Today, there are many trading Internet sites: market.yandex.ru, tiu.ru, meshok.net, and others.
- We consider income and expenses. The bulk of the costs are for the promotion of your online store. Here we take into account expenses for promotion of the group in social networks, payment for advertisements for placement in the top and other. As mentioned earlier, you can do without any material costs. However, you should understand that the more investments you make into the business, the faster the buyers will appear and the more you will be able to earn.
How much can you earn on drop shipping?
This is a rather difficult question. But not because you are waiting for a promising truth, but because it is impossible to name specific amounts. The amount of your income depends entirely on the quality of your work and the product chosen for the sale. On the Internet, you will be able to read many stories about how in a year entrepreneurs earn on drop shipping 1 million net profit and provide convincing evidence. Of course, these stories are not a guarantee that you will have the same. But this is a good guide, which will encourage you to do your business.
Increase your income from drop shipping is possible due to one – cash backs. Everyone at least once heard about the possibility to return to themselves some percentage of their purchases with the help of special cashback services. Users actively use them, trying to get back from the personal purchase. Just imagine how much money can be returned, having a turnover of many thousands.