E-commerce - Dropshipping
You’ve probably heard me use the word ‘dropshipping’ on my Instagram stories at least once by now. So, what exactly is dropshipping, and why do I keep mentioning it so much in my posts?
Dropshipping is a form of running an E-commerce business. It’ll be the future of transactions, and it’s slowly replacing all traditional forms of buying and selling items. Long description short, you’re the middle man between a wholesale supplier and thousands of consumers.
It's as simple as finding a product people want, sourcing a supplier that will provide it for you, for cheap. You then create a website and store that sells this exact product for higher than what you’re purchasing it for. Let’s use fidget spinners as an example: in 2017, the hottest product was fidget spinners. Suppliers sold them to resellers for $1-2 per unit, and these resellers would list them for $10+ per unit. How do they get traction on their stores? Facebook Ads, Instagram Ads, Google Ads, YouTube ads, etc.
The best part is, you don’t own any of the inventory nor do you ship the products. In fact, you should never even see the products you’re selling. Your only sunk cost should only be the website host, and marketing costs. So, how does shipping, and fulfilling work? Once your customer purchases the item from your store, you’ll have their full name, address, etc. You take this information and place an order with your supplier to the customers’ name, address, etc. The product will be shipped directly from the supplier to your customer's address.