People are getting tired of the rat race, working hard to make money and not knowing if they’ll have enough to pay the bills. Those hoping to make extra cash have turned to the lucrative world of dropshipping to be able to work remotely and make a difference in their communities. There are a variety of ways to make money with dropshipping, all based on the type of product or service you’ll be selling, but before you begin your journey to riches, it’s important to learn about the various models and which one is best suited for you.
1. Product Dropshipping
Let’s start with the basics: with product dropshipping, you’ll be selling a physical product (or items pertaining to physical products) to customers. You’ll have nothing more than a website, platform, or store front, and you’ll be acting as a middleman between the manufacturer and customer. When a customer makes an order, you’ll manually pull the product from the warehouse and ship it directly to the customer. This model can be very beneficial if you want to make money quickly as you’ll avoid all the hassles associated with retail. Just make sure you’re able to keep up with the demand for your product – otherwise, you’ll just be giving your money away.
Why product dropshipping?
It’s a simple and proven model that’s been around for years. Plus, you don’t need a huge initial investment, which is great if you’re looking for a way to earn money remotely. Unfortunately, this is also one of the least flexible models when it comes to making money. You’ll essentially be stuck with whatever product you choose and can’t easily switch to another item without losing all of your money. In addition, you’ll need to have a reliable supplier for the product you choose. If you don’t, you’ll have to find one (which can be very difficult).
Check out our article: How To Start A Dropshipping Business From Scratch
2. Service Dropshipping
In service dropshipping, you’ll be providing a service to customers. You’ll have a website, shop, or other digital storefront and you’ll be using it to provide nutrition education, health coaching, and weight loss programs for people. When a customer signs up for your program or makes an order, you’ll reach out to the appropriate coach or consultant and follow their instructions. You’ll then provide the customer with a certificate of completion that can be used for future coaching or re-orders. This model can be very lucrative if you choose the right product or niche, but it can also be very time-consuming. Just make sure you’re able to stay motivated and committed to the various tasks associated with the program – otherwise, you’ll just be giving your money away.
Why service dropshipping?
It’s a flexible model that allows you to choose what product you want to promote and can be easily combined with other opportunities. You’ll have the ability to switch gears and go in a different direction if you aren’t successful with one program. In addition, you can integrate online courses, webinars, and other digital learning tools to cut down on the learning curve and increase engagement. You’ll also need to make sure you have enough people available to provide the service. If you don’t, you’ll be losing out on potentially lucrative opportunities.
Choosing the right product is paramount in service dropshipping. You don’t want to pick a niche that isn’t already heavily saturated with competitors – especially in your chosen niche. Furthermore, you don’t want to pick a product that isn’t relatively easy to learn or implement. Lastly, look for products that have a high demand in your chosen niche and can potentially be profitable.
Check out our article: The Best Profitable Drop Servicing Business Ideas
3. Shopping Dropshipping
Shopping dropshipping involves selling products that are already made and shipped. You’ll have nothing more than a website or shop, and when a customer makes an order, you’ll pull the product from a warehouse and ship it directly to them. This model can be very lucrative if you choose the right product, but it requires a significant initial investment in the form of a warehouse (or other storage facilities). You’ll also need to establish your credit with the various vendors and couriers who you’ll be working with. It’s a slow and tedious process, but it can be worth it. Just remember: if you want to succeed in the long run, it’s essential to learn how to manage your inventory effectively. Without it, you’ll just be giving your money away.
Why shopping dropshipping?
It’s a very popular model amongst e-commerce stores that want to make fast cash. You’ll be able to pick and choose what products you want to promote and when orders come in, you’ll be able to fulfill them easily. In addition, you’ll need to establish relationships with various manufacturers and vendors to source the products you choose. You can use dropshipping to earn a substantial amount of money if you add up all the little things you’ll be earning – like $5 here, $10 there. It’s all about the little incremental profits that add up over time.
This is the perfect model for someone looking to make extra money remotely since all you need is a laptop and an internet connection. Plus, it’s very flexible – you can go in any direction you want once you learn how to be effective with it. However, establishing relationships with various manufacturers and vendors will be very time-consuming and require a lot of effort. In the long-run, shopping dropshipping can be very lucrative – but you’ll need to put in the time to learn how to do it effectively.
4. Brand Dropshipping
With brand dropshipping, you’ll be selling a brand or company’s products, but you’ll have nothing more than a website or shop. When a customer makes an order, you’ll pull the product from a manufacturer and add your own branding. This model can be very lucrative, but it requires a lot of effort to ensure you’re getting paid what you’re owed. You’ll need to learn how to market a brand and gain trust amongst your customers. In addition, you’ll need to ensure that when a product is sold, you’re credited for your involvement – this is called “brand attribution” and is more prevalent in Europe and other parts of the world where regulation is more rigorous. Without it, you’ll be losing out on potentially lucrative opportunities and not be able to generate the revenue you’re owed. It’s all about the little details like this that make all the difference – and a lot of hard work – to ensure you’re getting paid what you’re owed.
Why brand dropshipping?
It’s one of the more reputable models amongst marketing experts who advise small businesses. You’ll be able to pick and choose what products you want to promote and when orders come in, you’ll be able to fulfill them easily. In addition, you’ll need to learn how to market a brand and gain trust amongst your customers. This requires a significant investment of time and money, but it’s worth it.
Bottom Line:
The key takeaway from this article is that you don’t have to be limited by what’s available to you. There are many lucrative opportunities in the world of dropshipping, all based on your willingness to learn and the effort you put in. Make sure you have a clear picture of what you’re aiming for and how much effort you’ll need to make to get there. Then, you can start your journey to riches and make a significant difference in your community.
