How do I Set Up a Drop Shipping Contract with a Supplier?

How do I Set Up a Drop Shipping Contract with a Supplier?

In the world of entrepreneurship, stepping into drop shipping is considered to be the first step. Dropshipping means store owners can directly sell their products to consumers without stocking. If any customer purchases a product from the dropshipping store, a third-party supplier will ship the product to the customer. The customer pays for the purchased product. Then, you have to pay the wholesale price to the third-party supplier.

The remaining money is your profit.

To sell products, you should register an account with a third-party supplier. You can find your supplier in two ways. For your dropshipping store, find your supplier through a supplier database such as Dropship Direct, Alibaba, or AliExpress. Alternatively, you can find the supplier using an integrated supplier directory.

Oberlo is considered to be the easiest way to find the supplier. When a customer buys a product from your dropshipping store, Oberlo will fulfill the order automatically. You have to ensure that the order details are correct. The ordered product is shipped from the respective supplier to the customer, irrespective of the place where they live.

In the dropshipping business, you have to take full responsibility while creating a website and brand. Also, you have to take care of product marketing.

Some important steps to set up a dropshipping business plan are given on this page.

Invest your time in dropshipping It takes a significant amount of time and commitment to start drop shipping. In reality, most working people cannot quit their job and fully concentrate on the online store as it is quite challenging.

Everyone has different strategies to build their own business. In general, it is easy to earn $1,000 - $2,000 per month (working 10 to 15 hours a week).

Selecting your dropshipping business idea You have to investigate more about what you are interested in. Also, know about competitors and market trends.

Do competitor research Having a lot of competitors is a good thing in dropshipping. Do the following to know about your competitor.  Run a Google search.  Use competitor spy tools like Alexa.  Browse it on social media.  Subscribe to competitor’s email lists.

Choose a supplier

One of the important things you need to concentrate on is to choose a supplier. It is the key point in creating a successful dropshipping business. Without suppliers, dropshipping can’t exist. As discussed already, Oberlo is one of the best marketplaces to find products to sell online. The app itself manages everything. So, you don't need to worry about packaging, shipping, and managing inventory.

The Oberlo app uses the AliExpress database to find and add products to your dropshipping online store.

Additional steps include:  Build your ecommerce store.  Decide on a business structure to implement.  Get your finances.

Lastly, marketing your dropshipping store is the most important thing. You can prefer any of the following platforms for marketing.  Paid ads on Facebook and Google.  Influencer marketing.  Content marketing.  Communities.  Mobile marketing.

After managing your dropshipping business, check on the result and analyze it to improve your business.