Dropshipper: Definition, How to Work, Advantages, Disadvantages, How to Become a Dropshipper, Up to the Percent Count

Dropshipper is a person who sells products from suppliers to customers. Becoming a dropshipper is a business decision for beginners because it doesn't require a lot of capital and can be done without storing goods.

That's just one of the advantages of being a dropshipper. In this article, we will discuss in more detail the advantages and disadvantages of a dropshipper and how it works.

Dropshipping definition

Quoting Ahmad Syafii in the book Step by Step Dropshipping and Reseller Business, a dropshipper is a person who sells products to customers with photos from suppliers or shops without having to stock items, with prices adjusted between the dropshipper and the supplier.

This term departs from its activities, namely dropshipping, which means selling products from suppliers who provide pictures of products sold by dropshippers. Suppliers or stores handle incoming orders under the name Dropshipper.

How Dropshippers Work

As a link between consumers and producers, dropshippers promote goods that reach many people. Working with dropshippers starts with working with manufacturers. Once an agreement is reached, the manufacturer ships the product.

Product marketing can be done online, especially through social media such as Facebook, Twitter, Instagram, etc. The price offered by the dropshipper must be higher in order to be profitable. If buyers are interested in the products offered, they can contact the dropshipper and make payments. When finished, the dropshipper will contact the supplier to process the order.

When promoting goods, dropshippers are allowed to take photos of products sent by suppliers after being approved. Images can be edited with the store name and logo to keep them valid. The dropshipping process can be done easily and safely because there is minimal risk.

Dropshipper Benefits

Becoming a dropshipper is in great demand because of the various benefits you get. The following is a review of the book Step by Step Dropshipping Business and Reseller.

• Goods do not need to be stored because goods are sent directly from the supplier or warehouse to the customer.

• Flexible working hours, so it can be used as a part time job.

• Unobtrusive price fluctuations.

• Do not bother with product complaints from customers because product quality and delivery are the responsibility of the supplier.

• More cost effective because it does not think about costs and production processes.

• Not responsible for website or product management.

Disadvantages of Dropshippers

Apart from several advantages, the dropshipper business also has several disadvantages.

• Can't be too flexible about product prices, because it also needs to consider production costs and suppliers.

• Does not have its own product and is only a seller.

• Products cannot be changed or exchanged.

• Highly dependent on product management companies, in the event of a problem or damage, the Dropshipper can't do business.

• Profits are processed directly at the company's management.

How to Become a Dropshipper

How to become a Dropshipper to be successful and smooth:

• Choose the right product

Make sure the product has a high demand in the market and can become a common need.

• Find a good and correct supplier

Do in-depth research on suppliers. Check the quality, availability and smooth delivery of goods.

• Good communication with suppliers

Dropshippers are the liaison between consumers and suppliers, so good communication is very important to provide fast and valid information.

• Pay special attention to the services provided by suppliers

Ensure customer-centric service so that they are satisfied with the product and service.

• Ensure that contracts comply with the law

Once an agreement is reached, the supplier and dropshipper can reach an agreement that will manage various issues. The contract must be based on four aspects of Article 1320 of the Civil Code, namely Jurisdiction, Contract, Special Matters and Legal Basis.

Dropshipper Profit Percent Count

Summarizing from various sources, the percentage of dropship profits that can be obtained is 10% -30%. Dropshippers get a profit margin from the difference between the supplier's price and the selling price paid to the buyer.

For those of you who don't want to take big risks in your business, but want to get significant profits, you can try becoming a dropshipper. Skills you must master to become a Dropshipper:

• Marketing

• Manage social media

• Marketplaces

• Communication

• Strategy formulation

• Basic accounting

• Time management

Thus being a dropshipper is a liaison between consumers and suppliers. There are several advantages to being a dropshipper and this job is suitable for people with small capital.