Making money dropshipping isn’t always easy because of the way the dropshipping business model works.
But the good news is there are plenty of people who have done it. So today we want to share with you some helpful information on how the dropshipping business model works and what the challenges are when it comes to making money online. Then we’ll go through 5 tips based on things successful dropshipping entrepreneurs do to make money:
👉 Find the right niche,
👉 Establish a strong brand,
👉 Automate your store,
👉 Attend e-commerce events,
👉 Offer amazing customer service
How does the dropshipping business model work?
Before we get into specific ways to make money online with dropshipping, we need to understand a bit about how the dropshipping business model works. To do this, you need to think about 3 different players:
✅ The merchant (that’s you)
✅ The customer
✅ The supplier
In standard e-commerce, the merchant buys stock from the supplier and stores it somewhere. Then the merchant shisp it to the customer when a purchase is made.
But in dropshipping, the merchant doesn’t own or keep any stock. Instead, they sell online the stock of the supplier. This means the supplier handles all the shipping.
- The customer places an order at retail price on your online store.
- You receive the order and place an order with the supplier at wholesale price. You keep the difference in cost.
- The supplier ships the product to the customer.