Before Dropshipping, let us look at some history.With the evolution of humans, the number of needs they had increased. They found various methods to overcome those needs. At one time they came to a position where they shared goods they possessed, with goods they need. But this way was not a good idea. Because of the sizes, colors, uses, rareness, and many other critical factors of the goods differ from each other. So, It was hard to compare and share goods fairly.
Solution for Unfair Goods Share
As a solution to this problem, the concept of money popped out. This influenced the start of using a well-organized currency system. Changing into various forms, this system has been evolved to do transactions even touching physical currency. This can be called online transactions. With these online transactions, we have been able to trade with people we never know or haven’t even seen each other.
You might have seen various advertisements while surfing through the internet or social media. Most of those advertisements are specially customized for you. You can buy the products that you want from the websites that direct you through the ads or simply you can buy products from most of the online stores.
There are some market places that you can buy products at a very low price. Ali Express, Ali Baba, eBay, Amazon are a few of those famous market places. There are thousands of products to sell in the market places mentioned above we never have seen before. And also, thousands of new products are added daily. The beauty of this is that even though you haven’t seen or heard about these products and are with the latest technologies, most of them do not cost you more than 10 bucks.
Isn’t that amazing?
Before these market places getting famous throughout the world, some people saw an opportunity to get the best out of these. People started making their websites to sell products with a higher profit without producing or buying wholesale products or without possessing any of those products with them. They mainly focused on emails and social media to promote their websites with attractive posts and videos. Is it possible? Yes, it is! Let’s see how is that possible.
All of these transactions were made online. So, the buyer doesn’t know the seller and also the seller doesn’t know the customer. People find innovative and trending products from the above market places mentioned before and places them on their websites.
Once a person finds an advertisement about a product, haven’t seen before and may find it useful for him/her in any way, they end up placing an order. After the customer paying the product, the dropshipper (a person who does dropship) takes the customer’s money and places an order for the client’s details in the marketplace where he has chosen the product.
For example, the price of the product “A” is 1.68USD in Ali Express. Dropshipper show this same product on his/her website for 10USD. Once a customer places an order, the dropshipper pays to Ali Express seller giving his customers information. Then Ali Express customer sends the product directly to dropshippers client. Then the customer gets the product, Ali Express seller gets his money, and also the dropshipper who did nothing get paid 8.32USD (10USD – 1.68USD). Isn’t this a great opportunity?
This process is known as Dropshipping. Now you know what is Dropshipping. Dropshippers earned six figures in the past few years and also some are earning right now. They spent luxurious lives doing nothing like this. But something happened. If you are interested in that and the future of Dropshipping click here to read more.