Dropshipping is a business that makes it easy for entrepreneurs to start an online business without stocking the items themselves. Dropshipping allows them to sell products directly to their clients without having to stock them in someplace.

How?

An e-commerce website that follows the dropshipping model purchases the items it aims to sell from a supplier or manufacturer and then completes the order. By following the dropshipping model, entrepreneurs can cut the operational costs and give all their focus to customer acquisition!

Let’s have a look at how a company that follows the dropshipping model operates:

1. The customer places his order on the retailer’s online store.
2. The retailer forwards the order and details of the customer to the supplier.
3. The supplier ships the order directly to the customer’s doorstep.

Did You Know?

Giant companies like Zappos, Sear, and Amazon used this business model in their early years!

Dropshipping model can be extremely helpful for entrepreneurs who are still in the early days and lack the resource to keep their own stock. Once they feel they have become good enough to keep their own stocks, they can switch from dropshipping to any of the traditional business models.

Who Can Adopt Drop Shipping Model?

Dropshipping is the ideal business model for a newbie who has just stepped into the online business world.

Why?

Because it’s a low-risk and low-investment way to start your own business without any feeling of a gamble. It demands low-investment and you can experiment about different products to learn the pros and cons of each and which product has better chances of winning you stupendous profits!

But wait a minute, should you expect amazing margins right from the start?

No, the margin of profit in this business model is relatively low because there is always a third-party involved in it — supplier. Manufacturers don’t always support dropshipping and supplier will always be involved until you become established and keep your own stock.

Have a look at a few types of entrepreneurs for whom this business model may prove beneficial:

Validating Entrepreneur : An entrepreneur who wants to test a new product before investing in it can use the dropshipping model. After seeing the response, he can decide if the product is really worth investing or not!

Entrepreneur With low Budget: Drop shipping is the least expensive method to sell online and it’s the go-to business model for entrepreneurs with a low budget.

New Entrepreneur: Entrepreneurs who are new and don’t know much about the ropes of setting up a store and driving traffic, use this model to start earning and learning simultaneously!

What Are The Best Products For DropShipping Business?

Dropshipping products that are in demand keep varying with the trend and to learn about the trending dropshipping products in demand, tools like Google Trends can help you!

Here is the list of dropshipping products that can earn you good profit:

1.Fitness trackers

2.Smart Watches

3.Bluetooth headphones

4.Security Cameras

5.Waterproof Bag

6.Sunglasses

7.Artificial Flowers

However, these trends may vary with the trends and culture of the region you live in. If you are planning to start a dropshipping business, conduct research on what products are in demand in your region and how much profit you can earn from them.