How Dropshipping Works - No Nonsense Guide for Beginners

Written by
Isabel Edwards

So, you wanna know about dropshipping, huh?

You want to get in on this hassle-free way of earning some extra dollar?

Welcome, my friend.

Here are the basics you need to know before getting started with dropshipping...

What dropshipping means...

A dropship seller acts as the middleman between the manufacturer/wholesale supplier and customer.

They make sales through an online platform and earn an income through the profits made from the products they sell.

No storage or bulk buying is required as the goods bypass the seller and go straight to the customer from the supplier.

It’s the sellers job to market the products and get them in front of the right consumers.

Make sense?

Let’s add a little context to get this concept crystal clear...

How dropshipping actually works...

There are a few ways you can start a dropship business.

First, here’s the more ‘traditional’ method...

Let’s say you love cats and have a talent for dressing them in the cutest little outfits. Not saying you’re a crazy cat person or anything, purely hypothetical.

You decide the world can’t go another second without your indisputable talent. Thus, your dropship business is born.

Once you’ve set up an e-commerce store and found some dropship products to sell from a wholesale supplier, here’s how it goes down…

  1. You’ve absolutely smashed your marketing strategy and landed your first sale. A customer buys one of your gorgeous satin cat collars.
  2. You place the order with your supplier and enter the customers address for direct delivery.
  3. The supplier fulfils the order and ships the product straight to your customer.
  4. Once you’ve paid the supplier for the cost of the item and delivery, you’re left with the profit.
  5. Your customer receives their stunning cat accessories and even snaps a #purrfect kitty selfie.

Keep the ball rolling, continue marketing your products and you’ve got yourself a sweet little dropship business.

Cool, now you’re up to speed with the classic dropship method.

But, it’s not all sunshine and rainbows kid.

There are some major flaws in this method...

The Three Ways You Can Dropship…

There are three main ways to approach dropshipping:

Method #1 The Traditional Method - find your own suppliers and build the website yourself.

Method #2 The Plug-in Method - use an e-commerce platform that has a dropship plugin or extension.

Method #3 The Mercarto Method - use an e-commerce platform that has a dropship marketplace built-in.

The Traditional Method

So, about the traditional method… don’t use it.

It might be manageable if you’re only getting a couple of orders a week, but it’s super inefficient.

Every time you get an order on your online store, you have to place that order with your supplier and manually enter their details.

It’s also a nightmare finding reputable suppliers that you can rely on for good service and high quality products.

Oh, and you will also have to deal with all the complaints and returns. As your supplier is probably based in some far away land, you most likely won’t be able to return the goods.

So, you’ll accumulate a pile of faulty products at home which have put you out of pocket.

Seriously...stay away.

The Plug-in Method

A.K.A the slightly more modern method.

Better than the traditional method, but not exactly ideal.

Some e-commerce platforms may offer a dropship plug-in or extension.

This brings us to the modern day and introduces automatic order management, pricing automation and other cool time-saving features.

But, they are still two separate platforms that require separate accounts, separate management and not to mention two seperate paid subscriptions… yikes.

Wouldn’t it be neat if there was a platform that had everything in one place?

Hold my beer…

The Mercarto Method

To get your dropshipping business off the ground you need to build your store, find dropship suppliers and add the products to your store.

What if I told you it could all be done in one place?

And, it’s super simple, fast and can be done in a few clicks?

If that sounds good to you, you’re going to like Mercarto.

Design your own unique online shop with our easy to use store builder. We’ve created a drag and drop system so it’s super simple for anyone to design something awesome.

Product management has evolved, and we’re here to keep you ahead of the competition. Our advanced product management assigns attributes to your products, but all you need to know is your customers can find exactly what they’re looking for in an instant.

No stock?

No problem.

Our dropship marketplace is like no other, literally.

Mercarto is the only e-commerce platform that has a dropship platform built-in. Select your products, import them to your shop and manage orders all in one place.

Growing your business online has never been simpler.

Oh, and we also have tons of other useful features like custom responsive themes, secure payments, hosting, custom domains and marketing tools.

Is dropshipping really worth it?

Thoughts might be running through your head like…

‘Hmph, sounds too good to be true’

Or ‘Is dropshipping really worth the effort?’

And of course, ‘Will I make money from dropshipping?’.

I understand your concerns, and I’m here to give you the truth.

You won’t make a sustainable and profitable business by sitting back and doing nothing. Dropshipping does require you to put the hours in, especially in the early days.

We save you tons of time by giving you the tools to easily create a beautiful store and access to thousands of dropship products that can be automatically uploaded in an instant.

This allows you to spend your time marketing your products, building your brand and getting your business in front of the right people.

Aaaaaaand there’s the basics of dropshipping!

You’ve dipped your toe into the pool of e-commerce possibilities, are you eager to learn more?

Head to mercarto.com to get more invaluable dropship and e-commerce advice.

Or drop us a line on Instagram, Twitter or Facebook. We’d love to have a chat about your e-commerce ideas.

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