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Understanding Dropshipping: Basics and How to Get Started

Understanding Dropshipping: Basics and How to Get Started

Jackson Haime
Published on
June 3, 2024
Last updated on
June 3, 2024
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Written by:
Jackson Haime
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Wondering what this whole dropshipping thing is? Or, are you looking to start a small online business, and you've heard the phrase dropshipping here and there? 


Either way, you're in the right place. 


In this article, we'll clarify what dropshipping is and how it works. We’ll cover the highs and the lows, as well as how you can get started as soon as...today. 


There's lots to cover, so we'll dive right in!


What's Dropshipping? How Does It Work?


Dropshipping is a retail fulfillment method that empowers online merchants to start selling without worrying about warehousing, inventory, or shipping their products. 


This is the core difference between dropshipping and traditional retail models. In the three simple steps in the diagram below



Instead, when you, the store owner, make a sale, you purchase the product from a third party, the dropshipping supplier. They then ship it directly to your customer on your behalf.


Simple, right? 


What is a Dropshipping Business? 


In short, a dropshipping business is any brand that adopts the dropshipping model outlined above. If you’re curious about starting a dropshipping business:


There are two avenues you can take to get started: 


  1. Find the dropshipping supplier yourself, and manage these relationships and customer orders
  2. Use a dropshipping platform like Spocket. 


Needless to say, the easiest of these two options is the latter. As everything is automated and taken care of for you. 


With Spocket, you'll get access to:


  • Thousands of high-quality dropshipping suppliers situated across the US and EU 
  • Filters to help you find high-converting products in your niche
  • A discount on the products to help you maximize profit
  • You can order sample products to quality check items before selling them. 
  • You can fulfill customer orders with just a click. Spocket integrates with your online store builder so that your orders appear inside your Spocket account.
  • Fast and reliable shipping


Source



Why Would People Buy These Products From Me? 


You might be wondering why people would buy dropshipping products from you when they could go to the dropshipping supplier directly? Surely, this has to be cheaper for them?


Yes, you're right. 


But, there are a few reasons why customers choose eCommerce brands like yours over dropshipping suppliers:

Most Online Shoppers are Unaware


Although you've heard of dropshipping, the fact is, the majority of your customers won't have. 


So, even if shoppers wanted to purchase directly from your suppliers, most of your customers wouldn't even know where to begin.


This may sound patronizing, but the stats speak for themselves.


More often than not, when searching on Google for product names and popular shopping-related terms, dropshipping suppliers don't appear. Instead, you're more likely to find listings on eCommerce powerhouses like Amazon or Etsy, or independent eCommerce businesses - like yours!


When you consider a whopping 92% don’t scroll past the second page of Google's search results, it's clear there isn't too much competition from dropshipping suppliers. And, as such, it's no wonder the majority of online consumers aren't familiar with the concept of dropshipping.  

Trust


With some time, effort, and creativity, you'll create a customer experience that builds trust with your audience, which most dropshipping suppliers fail to do.


This is your time to shine! 


If you're unsure where to begin, you can do a few things to boost your credibility:


  • Publish plenty of high-quality product photos
  • Only use top-rated dropshipping suppliers (ones with excellent reviews and years of experience)
  • Make your store’s returns policy is evident on your website
  • Have an SSL certificate
  • Where possible, clearly display any trust badges you have
  • Provide tracking information for customers to trace their orders
  • Offer fast and informative customer service


Another huge element to building trust with your target demographic is putting a unique spin on your product. So, always test the merchandise yourself and write compelling product descriptions highlighting the product's core benefits. 


You could even amp things up a notch by creating a couple of videos that showcase your merchandise in action. It’s an ecommerce trend that's taking the world by storm and it goes a long way to encouraging customers to visualize how your product looks and feels. 


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