By Andrea Norris
- About Dropshipping
- How It Works
- How To Start Earning
What Is Dropshipping?
More From Your Money: Choose a high-interest saving, checking, CD, or investing account from our list of top banks to start saving today.
Dropshipping has little overhead and is ideal for entrepreneurs who do not have the financial means or storage space to handle physical inventory.
- Chosen selling plan — Individual or Professional
- Product type
- Fulfillment strategy
- Listing volume, optional advertising and other factors
Sellers must incorporate fees in their product pricing to ensure a profit.
1. Sign Agreements With One or More Suppliers
Suppliers may be more willing to sign an agreement with a business than individuals. Sellers who have formed an LLC or other business entity may appear more legitimate. Forming a business can also reduce the seller’s liability in the event of a lawsuit.
Different suppliers will have different requirements. Some suppliers may charge a monthly fee or have minimum monthly order requirements that could be expensive for new sellers.
The way sellers upload and list their products will vary depending on their selling plan.
4. Address Customer Issues
Sellers should answer customer questions about products, and ensure quick responses to any issues.
When logged into Seller Central, sellers can perform the following tasks to monitor and track sales:
- Track inventory and daily sales
- Update product listings
- Download custom sales reports
- Contact support and open help tickets
Takeaway
Information is accurate as of July 20, 2022.
- The key to making money dropshipping is finding a high-demand product that can be bought at a low wholesale cost and then sold for a reasonable price. Any profit must cover fees associated with the selling platform and the supplier.
