Dropshipping is a specific model of online business that lets you sell someone else’s products for profit. When you are dropshipping, you don’t buy these products in advance, don’t stock them, and don’t ship them.
It is the seller’s responsibility to assemble the package with the right items in it. The seller also arranges this package delivery to your buyer’s address.
Before you send the money to the supplier, your store receives the money paid by your buyer.
Let’s say the product costs $2.51 on AliExpress. You put a markup on it and make it cost $5.99 in your store, for example. So, while placing an order, your buyer pays $5.99 to you, and you only need to pay $2.51 to the AliExpress seller while transferring the order details.
That’s how you profit from dropshipping!
Of course. Basically, you’re just reselling products: lots and lots of entrepreneurs are doing the same for their businesses. The only difference is that with dropshipping, you have no product-related responsibilities at all, which is why you’re able to start this business with really low costs.
AliExpress has a great buyer protection system and gives a full money-back guarantee. Therefore, there is no need to worry if anything goes wrong with the order (it gets lost or damaged). Your AliExpress seller will be responsible for issuing a refund for your customer.
When you have your own store, you are not limited by any rules and requirements of other marketplaces. Besides, owning your site gives you more opportunities for promotion and marketing strategies. Furthermore, building your own site is a wise investment because you can easily sell this business one day. Such established dropshipping websites are always a very marketable product.
Not all the payment gateways require you to have an officially registered business. Therefore, you need to research to see which of them works in your country and ask their support teams whether you can register there as a private individual.