Whether you want to make dropshipping a side hustle or are interested in becoming your own boss entirely, you should have a good knowledge about this business. The FAQ article can remove all of your confusions regarding dropshipping. Basic question can be very helpful for the beginners who want to seek out the concise and precise help in the given field.

Aa a beginner, you should keep in mind that this business model has a lot of flexibility when it comes to choosing the diverse products, setting up the prices and working as the full-time or part-time business owner. After the pandemic, a lot of people have considered this idea.

Here in this article, we will cover FAQs related to dropshipping and cover everything from the meaning of dropshipping, how to set up the store, what are the necessary steps and things to consider and how you can run the successful dropshipping business. 

Ready for the ultimate guidance on dropshipping? Stick around and carefully read the FAQ section below. 

Dropshipping FAQ:

What is dropshipping?

It is a business model that allows you to run your own online store without buying or manufacturing the products on your own. If you are a total newbie, this idea will seem entirely new. However, if you focus a bit, you will come to know that this business model works on a simple principle. 

You create your dropshipping website, deal with the suppliers and display their products on your store. When you get the order directly from the customers, you will take payment. From this payment, you can cut your commission and send it the remaining amount to the suppliers. 

After the confirmation of the payment, the supplier will ship the payment directly to your customer’s website. 

Who Can Start Dropshipping?

Almost anyone! Seems incredible? But this is true. 

With a dropshipping website, you can start selling the products by directly receiving the orders from the customers. You can easily open your online store and get started with the selling of the products.

Dropshipping is best for those people who cannot afford to buy the inventory or do not have enough space to keep the products. So, they start dropshipping as a side hustle and sell things online on their online e-commerce stores. 

Is Dropshipping A Get-Rich-Quick Idea?

No, it will not make you rich overnight, but when you will start getting orders and positive reviews on your website, you will observe more and more increase in sales. This is because reputation building takes time and you should be determined and patient enough for this. 

With dropshipping, you are not going to lose anything as you have not spent even a single penny in buying the products as you have contracts with other selling platforms. 

How Dropshipping Is Different From The Retail Business Model?

Well, for most people who do not know what is drop shipping, it seems completely difficult to differentiate between traditional e-commerce businesses and dropshipping.

Let’s understand the huge difference with an example. 

Best Bay is one of the electronics retailers in the US. When someone goes to the Best Bay store to purchase the Smart TV, he has to preview the product before paying the bill. But after he makes the bill, Best Bay has to buy it from the manufacturer, store it and pay for the smart TV and the retail space. All these steps turn out to be too hectic and risky. 

Here you may ask:

What if I buy the Smart TV from BestBay.com online? How will this online e-commerce differ from dropshipping?

Well, keep in mind that even if you buy at the traditional stores online, the store has to pay for the shipping charges and it often costs a lot of money as they need to hire the workers who do all the packing and shipping. 

On the other hand, drop shipping saves you from all such confusion and helps you stay easy by letting the manufacturing company pay the shipping charges. 

Is dropshipping a legal business?

Before the pandemic, a lot of people were not clear on the subject that whether or not dropshipping is a legit business model. 

After the pandemic, people know that this business is 100% legal. 

Should I start dropshipping on general products or niche products?

Well, practically there is no limit to how many and what kind of products you can ship. So you can start with any number of products and can enjoy the niche dropshipping as well. However, if you want to rank on the search engines, you should start from micro-niche. 

What are some benefits of dropshipping?

If you are ready to spend your time and effort, it can be the best business idea for you. Some of the benefits of dropshipping include a lower capital requirement, no need to arrange the inventory place, and extensive product selection. 

Moreover, you also have a diminished risk of losing your money because you do not have to worry about the things that never got sold. 

The best part?

You can run this business at the ease of your location, no matter where you are located you will always have access to your dropshipping store if you have a strong internet connection and a PC. 

What kind of expenses should I have to pay to the drop-shipping suppliers?

There are major two kinds of expenses that you pay to the dropshipping suppliers. 

  • Per order fees: This fee is associated with the shipping costs and bundling of the ordered item. In most cases, it is not more than $2 to $5, however, you will be asked to pay considerably larger fees if the product is larger or hard to process. 
  • Monthly fees: Sometimes you have to pay month-to-month fees to the dropshipping suppliers. 

What is the difference between the supplier and the drop-shippers? And who are the suppliers and the wholesalers?

If you are new to this business, you may not know the difference between these terms. Well, you are a dropshipper and you are not responsible for the manufacturing, wholesaling, and supplying of the products. When you start your dropshipping business, you have the website and you use it to get the order from the products. So we can say that as a drop shipper, your main responsibility is to market the products and get the orders on your dropshipping store. 

On the other hand, the supplier has an entirely different responsibility. The supplier has to receive the orders from the dropshippers and has to supply the products to the client at the given address. The interesting thing is that the product package always has the name and address of the dropshipping company. 

Here it is worth mentioning that the supplier may or may not be the manufacturer of the products. The supplier company may have deals with other companies that manufacture the products. 

Now let’s see who the wholesalers are. 

The definition of a wholesaler is quite simple. A wholesaler is someone who purchases the products from the manufacturers and supplies them to suppliers.  

So keep in mind that suppliers can be the manufacturers and the wholesalers at the same time. 

Final Verdict

Now you have gone through the basics of dropshipping, we hope that you are now clear about the basic concept. If you are still confused and have various confusions and questions popping up in your mind, then feel free to ask us by commenting in the comment section below. 

We love to guide you.