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Is Dropshipping Legit and Profitable? User Guide

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Dropshipping legit and profitable

Welcome aboard to the world of online business. One of the most trending online business modules is based on the dropshipping business models. Generation Z is under the influence of social media and eCommerce sites, so why not use this influence to shape your dropshipping business?

Extremely popular these days, dropshipping is the new face of entrepreneurs. The marketing skills outweigh the capacity of a traditional business, hence the reason for its popularity. For an entrepreneur, a dropshipping business is an ideal approach for an online startup. All you need to do is sell products to the buyers without actually stocking the product. Items are purchased from the third-party source and shipped directly to the consumer.

Sounds easy right?

But is the dropshipping business legit?

If you are looking to earn a decent income then working on your online business might be the missing trigger in the business equation. Before we answer this question understand this;

“Dropshipping is a three-stepped process that is attractive for your marketing ideas”.

So if you are ready to contemplate your dropshipping business, then this article will enlighten your way from a business perspective.

How does dropshipping work?

Did you ever order an online product? First, you select an item, fulfill the requirements, and place an order. Dropshipping is similar with one exception only. The order fulfillment method does not include any in-house items. When an online customer purchases a product from the dropshipping store, it is directly shipped from the third party supplier.

What difference does it make?

Customers pay the retail price set by the dropshipping store while you pay the wholesale price of the delivered product. The rest is plain profit. All you need to do is to have a registered account.

How can you find a third party supplier?

You can have two options to choose from;

  1.     You can use a supplier’s database (like Alibaba)
  2.     Use an integrated supplier directory at the backend (like Oberlo)

For dropshipping (especially Shopify) using Oberlo seems like a good option. You have wide access to the products through Oberlo which makes it an ideal supplier. The supplier will fulfill the order automatically, you just need to double-check the details before confirming the order.

How to begin?

Dropshipping business is easy but it does require proper planning too. So you have options to choose from.

  1. a) Create a website.

 It’s imperative as the dropshipping business is only online. You do not require an actual store locator. You may as well as be sitting on your bed while handling the orders. You are responsible to create your brand name and therefore keep a close eye on the shipping costs and establishing prices to generate a good profit margin.

  1. b) Dropshipping business for sale

If you are not interested in creating a web domain from scratch and want an easy or faster way towards jumpstarting your business, you can find a dropshipping business for sale also. 

  1. c) Choose a niche

Dropshipping can include thousands of products under one roof. So the broader the categories are the better it will be. You will be able to target a wide range of audience too. This way the sales will boost easily. Some of the most common products include luxury items.

  1. d) Reputable dropshipping supplier

If you already have a supplier then it’s great! But even in case you don’t, then choosing a reputable dropshipping partner becomes a must. Before you make a final pick make sure to evaluate a list of dropshipping suppliers. Some of the best suppliers are

  •         AliExpress
  •         SaleHoo
  •         Spocket
  •         Amazon etc
  1. e) Analyze and improvise the store

with time, you need to keep updating the products you provide. Since consumer needs are impulsive in the majority you need to keep up with the online buying trends. It’s one of the best marketing strategies to improve your online business sales.

Is dropshipping profitable?

100% yes! Dropshipping can be your stardom of success if you are handling the business with smart strategies and offering the products as per customer’s need. It is quite a profitable online business model because despite being the owner you are not responsible for the manufacturing or shipping of products.

Another added benefit is that it’s a low-risk business. you do not require to make a heavy investment. Your business will highly depend on the quality of the products provided by the supplier.

Dropshipping suppliers like Amazon, Nike, Shopify, etc are yet notable competitors due to high-rise competition but it also brings in a legit series of questioning too by the young entrepreneurs. 

Is Dropshipping on Amazon Profitable?

With annual sales of $280 billion in 2019, Amazon is considered to be the world’s biggest eCommerce site. Getting your amazon seller account approved will open the doorways of possibilities for the seller. 

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To become a profitable entity on Amazon you need to comply with the requirements like 

  • Identify yourself as a seller of products 
  • To remove any third party drop shipper slip or invoice on the products 
  • Take responsibility for accepting and completion of order 
  • Comply with seller agreement terms and conditions with Amazon

How to use Amazon FBS for profitable returns?

You need to use the Fulfilled by Amazon program (FBA) that will allow Amazon to pick, pack, and ship your orders on your behalf. A tracking facility is also provided to take care of any inquiry of the product delivery and so on. But if you keep your goods in Amazon’s warehouse for more than 6 months, then you will be required to pay long-term storage fees too. So in order to calculate the cost and revenue, you can use the Amazon fee calculator too. This will give you an idea of how much you will earn through Amazon FBA.

But if you are interested in a more traditional dropshipping supplier you can find those who still do. 

Benefit from Amazon Dropshipping 

When you deal with a popular global brand, you get yourself a seat in the household too. You get in touch with the 310 million active users just under a single umbrella!

Amazon is a global brand so you only need to use Amazon ads to generate traffic and optimize your listings. Besides, organic traffic also helps to retain the sales too. 

Besides, there is no worry about holding the inventory too. So if you are using FBA this is an added benefit you get to enjoy as a seller. 

Cons of Amazon Dropshipping 

Amazon customers expect a high-quality product. So this makes the competition tough to impress the customers. Moreover, the profit made on a product’s sale goes to the supplier, so once the seller fees are deducted you will be left with a small percentage of profit only. 

Besides this, you do not need to keep an inventory but its availability still counts. A buyer doesn’t care where the product comes from so you need to have them at hand too and avoid getting the stock from getting low. 

Is AliExpress Dropshipping Profitable?

Despite the growing market competition, AliExpress dropshipping can prove to be quite profitable too. It’s not only about the established brands only. The recent AliExpress dropshippers are making a decent profit by implementing marketing strategies. 

ECommerce may not be as easy as it seems because there are tons of stores that provide similar products or have a better strategy. So how AliExpress dropshipping will make a difference?  

Down below are some qualities you can benefit from, so keep these in mind to keep your dropshipping from AliExpress profitable. 

Benefits of AliExpress Dropshipping 

What will make your store unique from the rest of the sellers on AliExpress? You will face a high rise in competition. So branding yourself is the first thing. The use of colors, store name, packaging or logo, etc all play a unique role in brand visibility. Customers are more likely to remember a brand that provides quality rather than being just any regular generic brand. 

Product photography is a sales amplifier too. The pictures used by sellers on the AliExpress page is almost the same if you use real pictures and invest a bit in product photography, your AliExpress dropshipping will make a huge difference in your profits too. The sellers on AliExpress do not work in a regular fashion. Remember that most dropshipping stores on AliExpress are located in China. Therefore they don’t use the marketing and sales terms as Amazon sellers do. However, a good web copy will attract the audience. 

Besides, getting a mobile-friendly website will benefit you too. Most AliExpress customers are offshored and making your dropshipping site mobile-friendly will give access to the user rather easily. So designing a website by keeping the desktop and mobile version in mind is imperative. 

Cons of AliExpress Dropshipping 

Before choosing a supplier on AliExpress, make sure to prepare a list or you can face some heavy loss. 

Being a seller it is your responsibility to pay close attention to copyright infringements too as suppliers are prone to selling low-quality products. 

Besides, shipping may be free but if you are to deliver to the U.S then it can easily take up to 30 days or more which makes the customer lose faith in the seller. So a long shipment is not what a customer wants. Is best if you get a reliable transportation company to ship products overseas. 

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Is dropshipping legit or a scam? How can you recognize a dropshipping scam?

The influence of the internet also has increased scammers too. Since dropshipping started as a make-belief kind of concept in the beginning people were scammed and robbed of their money too. 

Down below are a few easy tips you need to keep an eye out for before buying a product from a dropshipping store. 

  • Too good to be true 

Did you ever find a page or a website that claimed to sell a bag of Gucci or even an iPhone at a lower price? Sounds unbelievable? It probably is. 

The low price factor may be mouthwatering (figuratively) but it screams SCAM right away. If a product of a prominent brand is available at a “too good to be true” price then the chances are it is a scam. Even if the product price is twice the actual retail price you better check out the reviews.

  •  Social media proofs

Scam alert! Social media may be the house of the scammers despite being the core part of the ecommerce business. Spotting a fake logo than the original one can be hard but it is not impossible. Once you click on the social media icons on the website it will direct you to the said social media page. 

But guess what? Scammers are often too lazy to make a powerful profile so there’s always a giveaway. 

  • Small print 

How often do you check the terms and policy pages? Always go through the About Us, Terms, and Policies, Shipping, and Returns Policy pages. Also, have a detailed reading of the FAQs as well. In case any of these pages do not exist or have a poor quality reading text for e.g the typos, then the sloppiness may point out that it’s a scammer site. 

  • Brand names and discounts

How often does the dropshipping website use popular brand names like Apple, Zara, Adidas, etc with adjectives like brand new items, cheap rates, or discounted price?

A bold sale is not available other than the official website. Premium brands rarely use the word “cheap” or “discounted” in the same phrase. So do pay attention to these keywords. 

  • Check the domain age 

If you are still unsure whether the dropshipping site is a scam or legit then go ahead with the domain age. There are a number of websites that facilitate the online customers or even B2B clients to gather information about the websites including their domain age. If a domain name is registered just for a short time then it does raise suspicions, especially if the social media page tells another story. 

What does the trust score say about Nike and Shopify dropshipping?

 The Amazon and AliExpress dropshipping may be two of the most profitable dropshipping experiences you have but according to some resources, the trust score of other platforms is still questionable. 

The trust score of Nike dropshipping is extremely low so this brings forth the question “is the Nike dropshipping legit?”

With a low trust score, it could easily mean that can be a scam. Many reviewers rated the website using computer programs. 

The algorithm scanned the websites by using the source code, terms and conditions, registry, location, and customer reviews so far.  So based on these key factors it was discovered that Nike dropshipping scored low. A website with a low score means that you need to double-check the website if it really is a scam. 

Is Shopify dropshipping legit?

The story of Shopify begins with the german gangster living in Canada, who decided to sell snowboards. fast forward to the games of dropshipping and you will enjoy the benefits of Shopify to the max like;

 No worrying about the technical stuff! Just be done with a few clicks and go through the beginner’s guide. Using Shopify you will realize that it is quite mobile-friendly too. Which makes it more than just a dropshipping website. The core system is great and gives sellers full access to the code too. 

So yes, to answer the question Shopify is legit. Although it does depends on how you use it. It is a marketing tool so make sure to cover more than just one digital product to ooze the sales.

Bottom Line

 Dropshipping may have taken the modern business module by leaps and bounds but it still takes time to create customer loyalty and trust. A reliable dropshipping seller can become the real influencer too but in the meanwhile make a name for yourself.

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