[Cool] Awesome dropshipping webshop idea! what now?

As far as I know, dropshipping works this way:
1. You list on whatever selling platform the item you want to sell (You list an item for 54$ on ebay. The dropshipper asks 44$ for this item.)
2. Someone buys the item. They give you their address to ship to. (The buyer gives you the 54$)
3. You order the item from the dropshipper, and you tell them to ship it to the buyer's address. (You give 44$ to the dropshipper.)
4. Profit! (54$ - 44$ = 10$ Profit!)

Don't forget that you can get in trouble if the customer don't get the item, its broken or customer don't like the product. Then you need to pay back the money and got a broken item which you cant sent back to the dropshipper.

That's interesting what other risk am I taking by going in to dropshipping?

angelsquad said:

That's interesting what other risk am I taking by going in to dropshipping?

Click to expand...

You will need to find a good supplier. Your business is only as good as your supplier as you aren't the one really providing and mailing the items- they are. Remember: the buyers don't know about the supplier you buy from, all they know is they are buying from "you". If your Dropshipping supplier is slow at mailing, has a shoddy product, or even fails to deliver it will land on you instead of them.

You will need a business license to deal with many distributors. Period. Outside of something like Alibaba, many dropshippers won't even let you see their catalog without one! In short, this is pretty much "white hat" only so be prepared to be organized complete with tracking your income/losses, saving up and paying taxes, and doing everything by the books.

Pick your products carefully. Oversaturation of markets happens and can be a killer.

Once you do find a good supplier for a good market you'll need to keep an eye out for minimum allowed markups. Sometimes there is a set base price you can't go below for selling items. This price is there to keep luxury good prices high and if you undercut it you will lose your supplier and possibly be in legal trouble on top of it. Don't screw around with this or you'll lose bigtime!

You're going to need some starting money. Yes, buyers will pay you, but chargebacks and accidents happen so you will need to have some set aside from the start just in case somsething goes wrong and you need to send someone a second copy of an item or give them a refund. I'd go with at least enough to cover five of your most expensive item personally or $100: whichever is higher.