Drop shipping is another name for price arbitrage; a fancy term that means you find low-cost products and sell them at a higher price.
With a dropshipping business you don’t need cash or storage space. You just need to set up your store, list your products, and focus on marketing and selling.
It works like this:
First, you find and source a product with a low wholesale price from a supplier. Then, you place that product on your store and list it for a higher retail price.
When your customers purchase the item, you take their orders and send them to your supplier. The supplier sends out your goods directly to your customers and you keep the difference.
Things about dropshipping:
- It’s easy to set up a store.
- You don’t have to worry about inventory.
- There’s little risk to you as the seller.
- There are millions of products you can sell.
- It’s possible to have a dropshipping business anywhere in the entire world.
Now that we’ve talked about what drop shipping is, it’s time to go through the steps needed to start your own drop shipping eCommerce store.