Drop Shipping For Dummies


If you own your own business or work in the retail industry, there is a good chance you’ve heard of ‘drop shipping’. The term gets thrown around often and most of the time they make it sound more complex than it needs to be. Let’s break this down to the basics, let’s learn about drop shipping for dummies.

What Is Drop Shipping?

what is drop shipping?

To break it down to it’s simplest form, drop shipping when an online retailer get’s someone else to send stock for them. It’s also called a supply chain management system if you wanted to try and delve a little deeper into it. Basically, customers orders are placed on your website but a retailer, supplier or wholesaler will ship the product on your behalf. To successfully drop ship, there are two things you need… a seller and supplier.

How Drop Shipping Works

How Drop Shipping Works

Step 1: Browse products from various suppliers to find items suited to sell on your store as a seller.

Step 2: List the products on your eCommerce store. Upload the products and images on your site to market and sell to your audience.

Step 3: A customer makes a purchase from your store. You receive a commission of the sale and the order gets sent to the supplier to fulfill.

Step 4: The supplier confirms the products are in stock and sends them to the customer on your behalf. You can organise between the supplier how the tracking of the package works to ensure the customer is always kept up to date.

What Is A Drop Shipping Seller?

What Is A Drop Shipping Seller?

Being a seller while using a drop shipping platform means you are the source of where people make a sale. Customers come to your website and make a purchase with you. When an order has been placed, the supplier will send it on your behalf. While you only make a commission on the sale, there are many benefits to being a drop shipping seller. This is a great solution if you are wanting to test new products or are just wanting to offer your customers more variety.

What Is A Drop Shipping Supplier?

What Is A Drop Shipping Supplier?

A drop shipping supplier is the person who offers their products for other online retailers to sell. They are the ones who essential give their products to online stores to sell on their behalf, which they ship when the sale is made. It will appear in their system like a normal order, nothing complicated or scary is involved. Advantages of drop shipping as a supplier are key for helping grow your business rapidly. As a supplier, you can pick which stores sell your products to maintain a positive brand image. You are also able to set a price list for your products, to ensure you are not losing out on any profit.

How Much Does Drop Shipping Cost?

Does it cost much to set up your store?

Drop shipping can cost as much or as little as you want. In a brief overview, most companies only charge a small commission from sales made for using their site to find sellers and integrating them. If you are a seller, you will also need to pay a commission to the store who sold your products, almost like an affiliate program. If you are a seller, you essentially just make money from sales made, the only cost to you is the time you put into marketing the items.

Which Platforms Integrate With Drop Shipping?

Which Platforms Integrate With Drop Shipping?

Each drop shipping platform offers different integrations. The most common sites used for eCommerce are Shopify, WooCommerce and Megento. Elvenda also offers integrations for Neto and big commerce. We would be happy to help manually assist any other integrations from other platforms if yours isn’t currently listed or you are unsure of how to set it up on your own.

How To Set Up Drop Shipping On Your Store

How To Set Up  Your Store

The idea of setting up your store for drop shipping sounds complicated. If you aren’t the most tech savvy person in the world, you may need some help. You’re reading a drop shipping guide for dummies after all. The good news with this is that many companies out there are willing to help set you up your store. There are guides online to help you understand how to export your products for drop shipping. There are also articles to help you become a drop shipper.

Breaking it down, you just need to pick if you want to become a seller or supplier and then register accordingly. You will then just need to follow the prompts to upload your stock or browse the list of other stores using drop shipping. Be sure to pick ones that would be suited to your eCommerce store. If you get stuck at any stage, just contact support and the Elvenda team will even help you integrate your store.

You don’t need to feel overwhelmed with the concept of drop shipping. It may take a little time to fully understand the process but learning it can really help to grow your business. Comment below if you have any more tips or questions on drop shipping for dummies.

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