Running a business is a rewarding experience, but it can also take a lot of time, effort, and money – especially when you’re just getting started. All the inventory management, packing, shipping, and more can become a drag. Luckily, there’s a solution: dropshipping.
If you want to earn passive income from your e-commerce store, dropshipping is the retail fulfillment method for you. Below, we’ll go over exactly what dropshipping is, how it works to bring in passive income, and how to get started.
What is dropshipping? How does it work?
Dropshipping is a form of retail fulfillment that involves a business purchasing products directly from third-party suppliers, like manufacturers and wholesalers, rather than keeping the products they sell in stock. This means the seller never handles the products that they offer directly; the third party ships the products directly to customers.
Essentially, a dropshipping website is a digital storefront through which customers can buy products, but the products come from a different source. When you use the method for your own business, you will charge the customers, and the third party will charge you.
This method offers many benefits to retailers. For one, it requires less money to get started; unlike a typical business model. You won’t have to invest a capital into inventory before you launch. Overhead expenses will be low, as well. Dropshipping also calls for very little maintenance. You don’t have to worry about doing any packing or shipping, managing stock levels, or using a warehouse – in fact, you’ll be able to work from practically anywhere you can get Internet access. Overall, dropshipping is typically easier and cheaper than standard methods.
Where can I find products for my dropshipping website?
Okay, so dropshipping sounds like an ideal method for your business, but how do you get started, and where can you find products?
There are a few methods. Many websites make the process simple and easy to start, including Printful and Modalyst. You may also choose to reach out to and work with vendors directly.
Printful
Printful is a company that allows you to easily design and sell your own products without having to handle any part of the manufacturing or shipping process. You create your store and fill it with your brand’s own custom products. Once the orders come rolling in, Printful handles everything else from there. If you want to be able to design your own products to be dropshipped, this is a great option.
Medalist
Modalyst is another option that will allow you to connect with a range of suppliers in order to curate a store filled with products that you and your customers love. Rather than designing your own products like you would with Printful, Modalyst allows you to choose from their sprawling catalog of over 500 e-commerce distribution sites. It can also easily integrate with whatever e-commerce platform you choose, such as Shopify and Wix.
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Work directly with vendors
Your options aren’t limited to working with vendors that are available through platforms like Modalyst! If you set up a relationship with the vendors with whom you’d like to work directly, you can sell products from anyone.
Here’s how it works: You’ll sell a vendor’s product on your site to dropship, and keep a percentage of the revenue as commission before paying the supplier their discounted rate.
For example, if a vendor’s product is $100 and you agree to keep 20% for commission, you can put it on your website and pay the vendor $80 for every sale. This is different from affiliate marketing in that you’ll process the payments on your website and pay the supplier directly afterwards.
Contact W.D. Stratgies for help with your dropshipping website today
Want a little help building your website? We can help! Not only can we help you design a custom website for dropshipping that’s perfect for your brand, but we can also integrate it with platforms such as Printful, Modalyst, and others.
Contact us for a free consultation, or check out one of our pre-built template sites that you can get started with right away.
