Is Drop Shipping In Australia Legit?

Is Drop Shipping Legit?

A common questions we get "Is drop shipping legit?" When I explain the process of how it works, most people still don't fully understand. So let's get into why you should do drop shipping and what you can expect as a result.

Drop shipping is an online business model, where a product is bought from one company and sold on another company's website for a profit, with little or no direct contact between the two companies involved in the sale.

Let’s explain the seven main things you need to know about drop shipping.

1. How it works.

The process goes like this:
You may have observed that the majority of products sold online are not sold from a single website, but from a group of small websites that are grouped together as "pockets" of sites. These are usually known as "drop shipping sites". Drop shipping is when you buy from one company and sell on another company's website for profit.

The business owner has already established a relationship with the manufacturer that makes the product. After you purchase the product, the manufacturer labels it and ships directly to your customer. This eliminates a lot of risk from you as a business owner, since you're not directly selling a product and then getting stuck with it if you can't sell it. More importantly, this allows you to focus on marketing for your online business, which is where most new businesses fail.

Your new business will need some funding to start off. Many business owners who start a drop shipping business will simply use their own credit cards to get the business off the ground. I suggest that you build up your list of potential customers before purchasing large quantities of stock. You don’t want to be in the position of having so much stock sitting around that you can’t sell it, while at the same time you have to pay for that inventory sitting on your shelves. You should start off with a small shipment and build up as needed, depending on demand for the product.

2. The Pros and Cons of Doing Drop Shipping for Your Online Business
 

Pros:

The pros of drop shipping is that you can eliminate the middleman or retail company, and sell your inventory directly to your customers. You will learn about the products and services that you sell online, as well as the customer target market. This will give you an edge over other online businesses who have never ordered from the manufacturer. You can potentially earn a lot more money than other online businesses by selling your products to more customers, due to the fact that you're selling directly through the manufacturer and not through a retail store or a middleman.

Cons:

The main disadvantage of drop shipping will be the fact that you won't have any inventory on hand, and will need to continually build up your stock levels, which will likely mean that you require more funding to buy back stocks of products that do not sell. This is where most new drop shipping businesses fail. As more and more companies start selling their products or services on drop shipping sites, you’ll notice that the margin for profit drops significantly as a result.

3. How to Get Started with Drop Shipping if You Want to Try it Out for Yourself

If you are interested in starting your own business and you want to try out drop shipping, there are a few ways you can get started. The good news is that in most cases the supplier will ship their product directly to your customer. This eliminates the risk of having large inventories sitting around that you can’t sell, while at the same time you still have the opportunity to reap additional profits. (You can also check out this FREE GUIDE that covers all the basics in a great step by step format.)

A. Drop shipping through your own website or by using a drop shipping store like Easy Drop Shipping.
You can sign up with an online drop shipping store, and they will take care of all the ordering and marketing for you. You will be able to leverage their existing customer base to build up your own customer base, and then use them as a source of sales for your dropshipped products.

B. Become a dropship affiliate
You can also become an affiliate of other drop shipping companies and resell their products through your own website. There are many different platforms that provide you with a ready-made ecommerce website and all the tools you need to start selling to your own customer base. For example: Shopify, Big Cartel, Magento, Volusion and so on.

C. Low cost drop shipping through eBay/Etsy
One of the best ways to start a dropshipping business is to buy products in bulk and sell them on eBay. Since eBay is one of the biggest online shopping destinations, a lot of entrepreneurs have taken advantage of using this platform for selling some inventory that they just don’t need anymore. For example, electronics or apparel products. You can purchase thousands or even tens of thousands of dollars worth of goods on eBay, and then resell them for profit on your own online store.

4. The Long-Term Viability and the Sustainability in the Future

In the early days or drop shipping, when it comes to product selection, you are limited by what products you can find. If you're a new entrepreneur with a product in mind and want to start your own online business, you can browse through online stores like Amazon and buy their products in bulk. It's important to pick a niche where there are already established products and suppliers, so that you can avoid the risk of introducing a new product into a no-mans land.

While the risk of becoming overwhelmed by competition is there, drop shipping is still one of the best ways for the average entrepreneur to get started with their own business online. Like many things in life, if you want to be successful with something, build an online business around something that you're genuinely interested in. If you're not sure what you would like to sell online, or what the demand is for your product or service, you can start by choosing a product that you already know that people are interested in. It will only take a few hours of research and the option will be there for you to choose from.

5. Is drop shipping worth it?

I honestly think that drop shipping is a great place to start. It has the potential to be a very profitable venture, but it can also be a lot of hard work. The risk you run into is that you can end up being inundated with orders and your inventory (if you buy in bulk) will be quickly depleted. A good way to handle this situation is by starting off small in order to test the waters, and then gradually increase your stock levels as needed.Drop shipping is a good way to build and test out an online ecommerce business, while also generating revenue online.

6. Does drop shipping really work?

I have seen drop shipping work very well. I have personally been engaged in the process and it has made me a lot of money, through selling products that I’ve sourced from other places. The key is to find a niche that you’re interested in and to also find a product or service that you can learn about the market. Google Adwords can be used as a tracking tool for your keywords and your supplier should also be able to provide you with information relating to the demand for their products or services.

7. Can drop shipping be profitable?

Drop shipping has the potential to double your money and then some. You need to do a good deal of research and comparison shopping in order to be successful. When you're just starting out, it can be hard to find suppliers that will work with you, but once you find some suppliers that are willing, you'll be able to start forecasting your sales and expand accordingly. In a world where information is so easy to come by, it's hard to see how drop shipping could be any less profitable than any other business.

In Summery

Is drop shipping legit? The answer is 100% YES! But at end of the day the best way to find out is to try it out. You don't have anything to lose. There are tons of drop shipping stores that will be happy to sell your products if you give them a chance. So start getting familiar with the sites and you’ll be on your way.

All you have to do is sign up and then find some products that you like, and learn about the suppliers on your own. You can also buy from eBay or Amazon for cheap and then resell them on your own store. (Get a free trial with Shopify here)

If you would like more detailed info on how to get started with drop shipping check out this FREE GUIDE it covers all the basics step by step and will have you up and running in no time. Hope you enjoyed this article and good luck!