How to Become a Dropshipper

If you are wondering how to become a dropshipper you will be pleased to know that it is actually very quick, easy and best of all it can be done completely free of charge! Fundamentally all you need to become a dropshipper is 4 things;
  • Somewhere to market and sell products
  • One or more dropship suppliers
  • Some products to sell
  • A method of receiving payments

Where to market and sell your products?

There are almost limitless options of places that you could list and sell your products. For simplicity we’ll split them into two categories. You could set up your own website, you could sell through online marketplaces or you could of course do both.

Setting up a website

If you want to set up a website you will either need some technical knowledge to create your own website or you could pay someone to build it for you.  Setting up your own website will take time, almost certainly much more time than you anticipate and if you are paying a company to build one for you, it will almost certainly cost you much more than planned.

The alternative is to go for a turnkey solution that comes pretty much ready to go and can be easily customised. There are some options out there that are truly free such as wordpress, nopCommerce or magento but you will require some technical knowledge or assistance. Websites such as Wix and Shopify may from time to time offer free trials or free versions with a very limited amount of pages and features, ultimately most users end up paying a monthly subscription fee of around £25+ per month for these services. You will also need to buy a domain for your website.

Selling through online markeplaces

This is buy far the most popular option for dropshippers because it’s super quick and easy, users literally just need to register, list some products and start selling. There are many marketplaces to choose from such as Amazon, Ebay or The Retail Network and there is actually no reason why you can’t sell your products through multiple marketplaces.

Some marketplaces charge dropshippers a monthly subscription but typically it’s just a listing fee per product plus a commission for each sale that is generated. For example, this could be £0.10 per product listing and 10% commission on every sale. The exception is www.The-Retail-Network.com which is the only marketplace that is absolutely 100% free so, there is no subscription, no product listing fee and no commission on sales generated.

The main advantage of dropshipping through a marketplace is the instant access to buyers. If you think about it, would it be better to open a shop in the middle of nowhere or in the middle of a big shopping center where there is already lots of shops attracting lots of buyers? Of course, it’s better to be where there are lots of shops and buyers and it is exactly the same when selling online.

Where to Find Dropship Suppliers?

It is important to note that not all suppliers are willing to supply on a dropship basis and some brands can be quite particular about who sells their products and where they are sold. Many brands are very much against their products being sold on marketplaces such as Amazon or Ebay, especially higher end brands. Smaller brands, wholesalers and distributors are usually much more willing and geared up to work on a dropship basis.

If you have a specific product or brand in mind you could trawl the internet searching for websites but this will be very time consuming and even when you do find something you like they may not sell through resellers or be willing to work with you on a dropship basis. Marketplaces such Alibaba do sell on a wholesale basis but do not work on a dropship basis.

www.The-Reseller-Network.com is a global B2B (business to business) marketplace that connects suppliers and resellers. There are thousands of Merchants (suppliers) who are actively looking for resellers and dropshippers. You can search brands or products, you can filter Merchants by industry, location and reseller type. This means you can return only search results for suppliers in your chosen industry and location who are looking for dropshippers. You can also ‘Send Interest’ to contact suppliers directly to ask for further info or to apply to become a dropship reseller. Best of all it is 100% free for resellers!

Which Products to Sell?

This is very much a personal choice and there are several considerations to bear in mind. Firstly, ideally you should have some knowledge of the product type, what makes it appealing to buyers, the quality, the normal retail price and who the competitors are. This will help you identify products that are more likely to be in demand and give you a good idea of how much you think you can sell them for.

Of course, the ultimate goal is to make as much profit as possible but is it better to have a high margin and low sales volume or high sales volume and low margin? There is no ‘right’ answer but in general most of the time the aim is somewhere in between. It’s no good having a product with a huge margin almost never sells but equally you won’t want thousands of sales that require a lot of work for very little profit in return.

Quality is also vitally important, the last thing you want is to have a high volume of return requests or complaints due to poor quality. By choosing reputable brands with quality products rather than cheap knockoffs from third world countries you will reduce return requests, increase customer satisfaction and build base of loyal repeat customers.

One of the main advantages to dropshipping is that you don’t need to purchase stock upfront, this gives you a great deal of flexibility to list a variety of different products. Over time you can drop products that don’t sell and add new products to eventually have a list of top sellers that generate maximum profit for the least amount of effort.

The ‘browse products’ section on The Reseller Network enables you to search products by category and filter by price or alphabetically like any other marketplace. However, one unique and very useful feature for resellers is that you can also filer products by profit margin. You can filter the profit margin as a percentage or by the amount in your chosen currency.  

How to Receive Payments?

Your options will be mainly guided by where you chose to sell your products. For a hosted website it may come with specific payment provider plugins and when selling through marketplaces they will usually specify the payment processor. As you probably already know the most common payment service provider for all of these options is PayPal which provides both sellers and buyers with good protection, this increases buyer confidence and in turn will help you generate more sales.  

Ready to Start Your Own Dropshipping Business?

To register your own online retail store for FREE click here.

To find brands and products to sell click here to register as a Reseller for FREE.