Dropship is a popular business system for many people, especially for those who are just starting out. The dropship system gives you the opportunity to start a business without the need for large capital. With a capital that is much smaller than other business systems, but being a dropshipper is still cuan, you know! Amazingly, you don’t need to buy stock of goods to be sold, don’t need to be complicated to store stock items, and don’t need to take care of packaging and shipping orders to consumers. Hmmm, that’s not how the dropship system works. So as not to be confused anymore, let’s find out more about this business system, how it works, and how to become a dropshipper!
What is a Dropshipper?
A dropshipper is a person who connects buyers with suppliers. Well, dropshipping is the activity, where the business activity of selling products without having to own any products. So, a dropshipper is a person who has worked with suppliers to sell their products to consumers. In addition, the dropshipper also promotes to consumers who are his prospects. Because it is his job to market the supplier’s products in the most unique and attractive way, when there are orders and purchases, a dropshipper will forward the order to the supplier to be processed and sent to consumers. In addition, the dropshipper sells the goods at their own set price. So, the dropshipper’s profit comes from the difference between the money received from the buyer and the amount of money paid to the supplier. For a better understanding, try to see how the dropship system works below:
- Dropshipper creates an online platform to do marketing and display the products sold
- The consumer is interested in buying the product and makes a payment to the dropshipper (e.g. Rp50,000)
- The dropshipper forwards the customer’s order to the supplier along with the customer’s address information and makes the payment (e.g. IDR 45,000).
- The supplier sends the order e the buyer’s address on behalf of his dropshipper
So that’s KH’s friend, the reason why dropshippers don’t need to buy the products to be sold, because they are indeed serving as a liaison. Because of this, the dropship system has also become in demand by many people. In fact, it can be an okay side business too if you have a main job.
Benefits of Being a Dropshipper
Reporting from the book “Selling Online Without Hassle with Dropshipping”, here are the benefits of being a dropshipper:
- No need to buy products in advance, so it does not require large capital
- No need to provide space and place to store stock items
- No need to worry about items not selling or being damaged because they are stored for too long.
- No need to wrap or pack goods and send them to consumers
- Can be done easily because it doesn’t take much time
- No store rent as it is done online
- Considerable earning potential due to self-determined profit percentage
- Starting a dropship business is not complicated, unlike opening your own store
How to Become a Dropshipper?
After reading the explanation above, KH friends already know that this business system is quite cuan and okay to try? Well, if you are interested in becoming a dropshipper, let’s see how to do it below:
Determine the type of product to sell
The first thing you should think about when you want to become a dropshipper is determining what products you will sell. To find out, you can do a little research by finding out:
- What products people need or are currently trending
- Do keyword research related to your selling niche to find out what products are being searched for in that niche.
- Find out whether the products you sell can bring in the appropriate profit or not
- Find products with low shipping costs
Competitor analysis
The person who runs the dropship system business is certainly not you alone, there are many competitors out there with the same niche. Therefore, use the ATM business principle of Observe, Imitate, and Modify when analyzing competitors. Observe how competitors market their products, what content they use, how they reach their target market, what their sales website looks like, and other things. After that, copy the good things that you can follow, but don’t completely copy them! You can add a few or many modifications from your research.
Choose the right and trusted supplier
One of the important factors in running a dropship system business is choosing the right and trusted supplier. Some of the things you can check from suppliers are:
- How long has the supplier been operating
- Item price, payment system, refund system, and delivery
- How many products were sold
- How many followers are on social media
- Pay attention to consumer reviews
- Compare in-store photos of products with what customers receive
There are now also many companies or businesses that bridge dropshippers and suppliers. So on a website, you can register as a dropshipper and choose suppliers who have worked with the business. Usually they also provide free websites, apps, or online stores that you can use.
Create your own online selling platform
After determining what products you will sell and getting suppliers, the next thing you need to do is create your online platform. This platform can be in the form of social media instagram, tiktok, even to websites and e-commerce where you display the products sold. Don’t forget to add product photos along with complete descriptions such as size, price, material, color, and more. This is to make it easier for consumers to shop at your store.
Set up a payment system
The next thing you need to do is set up a payment system that is safe and easy for consumers. You can also implement a payment gateway on your online platform. In addition, if you use e-commerce, you can also utilize several payment methods that they have and have been tested.
Promote selling products
Once everything is ready, the next step is to promote the products you sell in order to get buyers. You can do this through various platforms that are relevant to your target consumers. It can be through Instagram, TikTok, Facebook, Twitter, and other social media.
KH Contact
How, ready to start a business and make money by becoming a dropshipper? This business does not require large capital, but there is a catch. You must be consistent in marketing the product so that it can be sold. The more products that are sold, the more money you can earn. But as explained above, the no less important thing you need to do is choose the right and trusted supplier. Make sure the service is buyer-oriented, so that they are satisfied with the goods and services. In addition, to guarantee the cooperation you have with the supplier, you can make an agreement according to the law agreed upon by both parties. This is because cooperative relationships cannot be run on the principle of trust alone, because they are prone to conflicts and risks that occur in the future. Therefore, the cooperative relationship that exists between you as a dropshipper and supplier (supplier) is recommended to always be outlined in a written agreement so that the legal relationship and obligations are clear. To make the agreement, you can do it with Contract Law. We provide Supplier Agreement services that you can access on the page https://kontrakhukum.com/kontrak/dancan help you create and review agreements with suppliers that suit your cooperation needs. In addition to suppliers, Kontrak Hukum also provides Distributor Agreement services to help you make agreements between principals and distributors so that marketing and sales can run smoothly. For more information on how to make a distributor agreement, Friend KH can visit this page https://kontrakhukum.com/kontrak/ or contact Kontrak Hukum through the following link Ask KH.
