It’s hard to miss the dropshipping success stories popping up on social media and the tutorials on how to make money with dropshipping. While the urge to take the plunge may be tempting, no one can promise you that you’ll make a fortune from it. So yes, dropshipping works, but not by doing just any old thing.
What is dropshipping?
Dropshipping is an integral part of e-commerce in 2020 and is currently the dream of more than one entrepreneur. However, this term is still vague for some people who are wondering what dropshipping is so a simple definition as well as some explanation is needed. With the black friday dropshipping this is the most important option available.
In practice, this is how it works: the customer goes to your website and buys a product. You are informed and you send this order to your supplier who will send the product directly to your end customer. At no time is the reseller in contact with the product. Your role is therefore that of an intermediary, but not only, because it is your task to promote the product and sell it.
You see, there is nothing complicated about how dropshipping works. Moreover, if this type of distribution has become widely democratized in recent years, it is thanks to this simplicity of implementation. Indeed, no need to manage supply and stocks in dropshipping or delivery. The wholesaler takes care of all the logistics to ship the product to your customer. This is how it works. When it comes to the black friday top selling items to dropship you can find all essential solutions right there.
Unlike a physical store or an e-commerce site where you sell your own products, dropshipping does not require any investment in terms of manufacturing or storage since you are selling a product that does not belong to you and the delivery takes place. directly from the wholesaler’s warehouse. All you need is a website where you will exhibit the products. It is thanks to this financial aspect that the risks of dropshipping are almost non-existent.
The dropshipping margin is the difference between the retail price paid by the customer and the wholesale price charged by your supplier, the equation is quite simple. Knowing that it is up to the reseller, or up to you, to set the final sale price and therefore to decide your margin.
The definition of dropshipping is therefore very simple: it is simply a method of selling products without having to manage stock and without even having to manage delivery. You can go for the black friday vs cyber monday sale there.
Is dropshipping legal?
Now that you know what dropshipping is and how it works, let’s move on to a much talked about question: is dropshipping legal?
- The answer is yes. This practice is completely legal, it is a commercial activity in its own right. It’s the same principle as a supermarket which sells branded food products to consumers except that here everything is done via the internet.
- Although dropshipping is not illegal, some reseller practices are fraudulent and have contributed to tarnish the image of this e-commerce activity. This is the case during the resale of counterfeit articles, branded products without having the authorization or in the event of incorrect invoicing of VAT.
Taking the example of counterfeit products, the dealer may sometimes have been put on the hook by the supplier without being aware of his shenanigans. But proving honesty in such a case can be tricky, hence the importance of doing things right and not choosing just any supplier. In this guide to getting started in dropshipping, we’ll come back to the importance of choosing a good supplier.