Understanding the Funda of Zero Investment and High Return in Dropshipping

Understanding the Funda of Zero Investment and High Return in Dropshipping

  • Meroxio blog Admin

Ever heard of the names like wholesaling, White-labelling and Subscription models? If you are familiar with ecommerce and have already worked into e-commerce business, you can catch these terms in less than a minute! Yes, I am talking about the various business models of e-commerce.

Among all the famous ecommerce business modes, Dropshipping model of ecommerce business is gaining popularity because of its uncompromised advantage of zero investment and high return. Let’s dive into what Dropshipping is and how it can guarantee high investment with zero investment, along with some pros and cons of this model.

In this post, we’ll see…

  • DropShipping model of ecommerce
  • No investment and high return concept of DropShipping

You can just start your own Dropshipping shopify Store via only 1 click get you free trial of shopify click here 

DROPSHIPPING… WHAT IS IT EXACTLY?

DropShipping is first and foremost a business model wherein you can sell products to customers’ worldwide. It is that simple! Well, it has got some other elements as well. In DropShipping model, a seller doesn’t have to set up an inventory or warehouse. The seller can directly get orders from customers and a third party will do the other tasks of the order!

Let’s say, Adam wants to start a DropShipping business. He wants to sell headphones in his business. What Adam has to do is list down his products in an ecommerce website like eBay or Amazon, which has got no investment of its own. Now Billy likes the listed products displayed in Adam’s online store and places an order. Now, what happens is Adam gets the product delivered to Billy! Wait; there is a behind-the-scenes story for getting this delivery done…

  • When seller gets an order, he forwards the order data to a third party which is probably a manufacturer of the product
  • The seller also shares delivery details of the customer
  • The third party gets the order shipped in the respective location

Now, suppose Adam sells each head phone for $100. At the end, Adam has to pay the shipping charges to the Third party, say around $60 and pay the eBay and PayPal tax of around $10; Adam makes a profit of $30 with absolutely no investment on the product! Isn’t that amazing!

The biggest advantage of DropShipping is that the seller doesn’t need to take the pain of setting up a physical store, employ workers, shipment deals and lot more which are concomitant to a physical business setup. There is no investment to be made in Dropshipping and on the other hand, you can enjoy high returns from the business.

A very crucial aspect of any DropShipping business is to find a Drop Shipping supplier. Actually, Drop Shipping supplier is the one who will manage the physical aspects of the business starting from packaging and shipping to handling returns and delivery. DropShipping suppliers can be found on AliBaba, eBay and Amazon.

Zero Investment in Dropshipping- There is apparently no deal of investment in DropShipping. This is a great way to start ecommerce business for those who don’t have a big investment plan to be made or someone who is a fresher or newbie and wants to give a start up to ecommerce!

You can contact us for complete Dropshipping Shopify store design  

High return in DropShipping- Basically, as a seller you only earn profit without any investment made on the products, shipping or delivery! You get around 30% profits (rough estimation) from each product sold through DropShipping

On a wrap, it is definitely a big shot for a newbie who wants to invest into a business with zero investment on behalf of the seller. Along with all the perks, it does have its part of cons as well, such as high risk, shipping complexity and low margins

You can just start your own Dropshipping shopify Store via only 1 click get you free trial of shopify click here 

 

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