Hopefully these Q+A's below will give you the basicsWhat's Dropshipping?
Dropshipping allows you to sell products on behalf of a supplier. The supplier actually holds the products and sends the products to your buyers. The buyers think the products come from you.So what's in it for me?
Lets say you sell a product for £10 and the supplier sells it for £5. You just made £5 (minus any service fees such as Paypal fees).So is there actual profit in it?
I get asked this allot and the simple answer is that you need to check the prices from your potential supplier against retail prices for the products they sell. Do your homework! If you have access to the suppliers products prices then Google some of the products and see where else is selling these products and how much they are being sold for. If retail stores are selling these products for the same price as the supplier then there would obviously be no profit. You will never have a massive profit dropshipping but a good supplier will leave you a margin because without a margin you won't sell their products and if you don't sell their product they won't make any profit. The truth is that if you were to buy wholesale and sell the items individually then there would a far bigger profit margin than dropshipping however you would need to buy wholesale. This means you would need to buy a bulk amount of products up-front. There would be a large upfront cost and you would need to store the products and send the products yourself. You will have a lower profit margin dropshipping but you have a far smaller upfront/ getting started cost, not have to worry about storing the products and not have to worry about sending the products. Everything can be done from your PC.So what's in it for the supplier?