What is dropshipping? Is it worth it in 2018?

I have noticed in the last few months in several Spanish-speaking e-commerce groups that many people don’t know what dropshipping is. Despite the fact that this term has grown exponentially in recent years, the information available in Spanish on this subject is somewhat limited.

While most information about what dropshipping is is in English, and millions of videos and information about it can be found, not everyone is fluent in the language and that makes it difficult for them to get started easily.

What is dropshipping?

In short, dropshipping is the model in which we sell the products of a third party, without having to invest in merchandise. Surely you’ve done it before without knowing the term. Maybe you’ve helped a friend or family member sell something for a small commission. Or you sold items by catalogue to people in your community. Well, the drop shipping model is something like that.

How it works

We can see the dropshipping model as a triangle using three individuals: you (or your shop), the supplier, and the customer. Although in this article we will talk about various types of dropshipping, the most common at present is Shopify dropshipping and eBay drop shipping. In both cases, we will need a store or an account.

You (or your shop)

Whatever type of dropshipping you prefer or the way you want to implement it, you should have a place where people can see your products. The most common way to do this is to create an online store, and as far as that goes, Shopify is the most popular.

Why? Why?

Because Shopify has some of the world’s largest dropshipping vendors and integrations, such as Oberlin, Dropified and Printful.

The purpose of creating a store is to be able to expose your products to potential buyers who can buy them from there.

The supplier
Since we have a shop set up, where do we get the products from?

For each type of dropshipping there is a variety of providers, and each of them has different features and benefits. Due to the great growth of dropshipping in recent years, the number of suppliers has multiplied exponentially.

The supplier is responsible for manufacturing and shipping the product to your customer. Most of them have warehouses generally installed in the United States and China and once you make a sale, they send the product to the door of your customers’ homes.

One of the advantages of the dropshipping model is that you don’t have to invest in large quantities of inventory or worry about shipments, as they take care of all this, and charge you only if you sell the product.

The customer

Third, and not least, the customer. After all, it’s no use having the best store and the best supplier if you don’t have any customers to buy.

They make the payment in your store, and receive the product from the supplier.

Now, is it as simple as it looks?

As I said before, we will go as deep as we can to be able to answer any questions you may have about this if you are interested in getting started.

Types of dropshipping

Although this term is mostly associated with Shopify dropshipping, few people know that there are several other types of dropshipping, for example:

eBay Dropshipping

eBay dropshipping is a model that has been around for years and is one of the most common in the world. It’s mostly based on selling products from other online stores like Amazon, Walmart or Best Buy on eBay USA.

Dropshippers on eBay look for relevant or trendy products on stores like Walmart, and then post them on eBay at a higher price. When an order is placed, either by themselves or by a tool they use to automate it, they place the order at the Walmart store and Walmart sends it to the customer. Let me show you an example.

what is dropshipping

We see that this lamp is on eBay, at a cost of $129.99 US dollars. It may be a good price if it’s a good quality lamp, but if we look for that same image on Google, we can find exactly the same lamp on Overstock, and if, for less.