What is Dropshipping? A Comprehensive Guide

In online business circles, the term dropshipping is often thrown around as a type of get-rich-quick scheme that any internet entrepreneurs can get involved in. However, this is simply not the case. Dropshipping may have been easy to get in years ago, but in 2019, it is a difficult business to get in. Because the startup costs of dropshipping are pretty low, a lot of people were attracted to the business model and oversaturated the market. However, entrepreneurs need to have a huge gamut of internet marketing skills in order to be successful at dropshipping. With that in mind, here is how dropship is defined in the context of internet marketing.

How to Define Dropshipping

What is dropshipping is a common question that is often misunderstood. Dropshipping isn’t just a business model where you sell products on behalf of suppliers, and then pay for them to be shipped to clients, thereby earning a sizeable markup for yourself. It is also a form of customer fulfillment and enticement. This means that you need to use internet marketing skills to actually get eyeballs on these products online and get people to buy them. Otherwise, dropshipping is just making a deal with a supplier, which is not the whole purpose of this business model.

How Dropshipping is Used Today

While the business model is certainly oversaturated, dropshipping itself can still be lucrative if you have the internet marketing know-how. Good dropshippers do research and find a product niche that is both profitable and has room for growth. Once you’ve selected a product niche that meets this criteria, you’ll be able to grow a dropshipping business that is sustainable and that can be run solely on the strength of your internet marketing skills.

As for developing your digital marketing skills, this is often the most overlooked aspect of dropshipping. Nascent internet entrepreneurs except to simply sign deals with suppliers, and have the sales roll in. However, ‘if you build it, they will come’ does not apply to dropshipping. Instead, once you select a product niche, you need to learn how to target and optimize digital ads, and treat your dropshipping venture like a true ecommerce store. Only then will you be able to bring in sales and drive conversions on your ads on the likes of Google, Facebook, and other similar marketing channels.

Learning dropshipping is a challenge, but the biggest impediment to doing so is setting your expectations incorrectly. Becoming a dropshipper is hard work, and is not for anyone just looking to make a quick buck. You’ll have to spend time researching product listings on Amazon, Ebay, and other ecommerce giants, and creating relationships with suppliers, which can be a challenge if you have no connections in the industry you are looking to go into. Finally, you’ll have to develop your digital marketing skills to actually make dropshipping effective. All in all, dropshipping is a great business model where a savvy online entrepreneurs can make a healthy profit – but they need to be willing to put in the work. Otherwise, they won’t be able to run a dropshipping business effectively.


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