5 Ways to Make Money Online with E-commerce

5 Ways to Make Money Online with E-commerce

2. Dropshipping

Dropshipping is a retail business. The only difference between dropshipping and the common retail shop is that in dropshipping, you do not buy inventory.

This is how it works:

  • You set up a store
  • You look for products from a dropship supplier
  • You display their products on your store
  • If a customer buys from your store, you order it from your supplier
  • The supplier ships the item to your customer

In dropshipping, you make a profit because your selling price is different from your buying price. If the supplier is selling his items for $5, you can sell it for $9.99. Shipping is charged differently, so you have to charge your customer for that, too.

Here are the things you need to think about before you get started with dropshipping:

  • Products – what will you sell? You need to find out if there are suppliers who dropship the items you want to sell. Many suppliers are found in AliExpress, but you can also use tools like Spocket, Oberlo, and Dropified.
  • Platform – what platform are you going to use? The most common dropshipping platform is Shopify. You can build a Shopify store easily, even if you do not know how to code. You can also use other platforms like WooCommerce, Ecwid, and many more.

In dropshipping, you will face heavy competition. You have to set yourself apart and make sure that your website is professional. If you want, you can also ask the supplier to brand the items with your brand.

If you ask your supplier to do the branding for you, this is called white label retail. Another form of this is called a private label.

To succeed in dropshipping, you need to advertise. This is going to entail a cost, but the alternative is to get free traffic via social media and search engine optimization.

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