drop-shipping business plan

Before even starting the article, let me tell you what I think about drop-shipping business plan. Drop-shipping might seem like a nice idea for vendors and manufacturers who don’t have experience in sales, but it is not a very good business when you look at it from an ethical perspective.

Business – To sell a product that you don’t own, just by creating a channel of customers.
Business Type – Ecommerce
Most suitable for – Anyone with blogging or web designing background. Not a rocket science for beginners either.

Drop-shipping business plan involves you selling things on your website which are already available on the internet for a lower price especially when the customer ends up buying a product for double the price of its worth on the internet due to aggressive sales tactics.

Ecommerce is one of the biggest reasons why internet became such a successful idea. With more competition, people started to add more creativity and aggressive sales tactics to sell their products to the people on the internet.
Drop-shipping is one of such ideas. Here, the wholesale vendor gives you the freedom to sell his products at a higher price.

Explain drop-shipping business plan to me with an example
Ok, let’s imagine a scenario of gym/energy supplements sold on Ecommerce sites like AliExpress. Let’s say that there is a product which is worth 40$. Now, you open your own Ecommerce store (These days, even an amateur can start his/her online store with the help of shopify), and put the description of the same product and price it at 60$. With vigorous social media advertising, you can actually sell it for 60$.

Now the customer pays you the money ,gives you the address and waits for the order to be delivered. With the 60$ he paid, you go to AliExpress and put a fresh order for the product to the customer’s address and tell the vendor not to include the price details. Just by peddling the order, and by not even touching the product you make 20 bucks. With services like shopify.

This process is automated, all you have to do is to advertise about your site/webpage and the money starts rolling in.

What is cross-shipping?
Unlike drop-shipping, cross-shipping doesn’t even need a different webpage/store. All you have to do is to see what’s selling hot on ebay, and sell it for a higher price at Amazon or AliExpress. This is the reason why sometimes you get your product packed with a different ecommerce company name when delivered to you.

Which are the companies that provide such opportunities?
Nearly every big Ecommerce company has its own version of drop-shipping methods. AliExpress is the most famous vendor among drop-shippers.

What do i need for a drop-shipping business?
As explained above, you need a selling strategy. Choosing the niche of the product that you want to sell is very important. Don’t try to sell the products that are not attractive, also don’t try to sell the same product that everyone is trying to sell. Select a product which has less competition and more demand.

How much does it costs me to become a successful drop-shipper?
You need a proper webstore which needs an initial investment of at least 5000- 7000 rupees(200$- 400$), and extra money for your advertising strategy. There people on the internet who say they will teach you how to drop-ship without spending a penny, don’t listen to them, they either don’t know what they are talking about or they are just lying. Drop-shipping needs money and that’s the truth.

There are many effective advertising methods that drop-shippers use. Try to research on such methods before jumping into drop-shipping business. An effective sales strategy and the meaningful use of social media will definitely give good results since those are the only two things that matter in this business.

Hope this article helps you. Please checkout other awesome business ideas mentioned in our blog. If you want to know about starting a plant nursery, click here . You can also checkout our other agriculture related posts here.

2 thoughts on “DROP-SHIPPING BUSINESS PLAN | Best Business Ideas”

  1. Jahrine says:

    When I started up an etching shop, I thought that everyone there only sells homemade things. In my case homemade jewelry. But I see a lot of ready-made things from AliExpress are just reselling. And of course for very low prices because they do not put in their own work. Sometimes photo is also the same as on AliExpress.

    1. Ananta Bhat says:

      Yes, you are right. The whole point is to set up a system where you need to do a bare minimum work.

share your thoughts