6. Dropshipping

6. Dropshipping

Dropshipping is a relatively unknown business in many parts of the world. However, it is an excellent way to sell online. Dropshipping does not involve much costs.

All you need to do is advertise your products on a great dropshipping website like Alibaba.com for a small fee.
What is Dropshipping?

Dropshipping is a simple way to sell online. You post products for sale on a dropshipping website. When someone buys the product, they will place an order with you.

All you need to do is dispatch the stuff to the address provided. Usually, dropshippers do not order stuff for themselves. Instead, they promote variety of products from own website or affiliate marketing or online stores on Shopify and Etsy.

Dropshippers will promote a product by adding a mark-up. Upon getting an order and payment, they will buy the stuff from an online seller like you. The dropshipper will pay you on behalf of the client.
Dropshipping Advantages

Dropshipping does not require you to have an online store or website. Instead, you will promote the stuff you sell online on dropshipping websites.

Whenever a dropshipper looks for a product, your stuff will feature in the search along with the price and specifications. If the client likes your product, they will place the order and make a payment.

Dropshipping is also an ideal way of finding wholesale markets for your products. Lots of dropshippers will place bulk orders on behalf of brick-and-mortar stores and online stores. It saves you the bother of looking for clients too.
Dropshipping Disadvantages

Selling via dropshipping websites can pose several disadvantages. One of them is bargaining. Most individual dropshippers that place an order will haggle over prices since they look for fatter commissions.

Also, you have no control on prices charged by dropshippers that buy your stuff and sell to others.  This can cause your stuff to lose integrity in the market.

Further, most dropshipping websites are known for cheap stuff. Your product can get that unwanted tag as an inferior product when posted on a dropshipping website.