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How To Make Money From Dropshipping

Dropship – An arrangement between a business and the manufacturer or distributor of a product the business wishes to sell in which the manufacturer or distributor–and not the business–ships the product to the business’s customers .

As a drop shipper you do not have to carry any products. Your main role as a drop shipper is to market your products and provide customer service.

Usually this means setting up a branded e-commerce website and getting people to buy from your website through marketing efforts like Facebook advertising, IG advertising or SEO.

Once a customer makes an order for a product or several products on your site, you make an order for the product from your drop ship supplier. 

You provide them with your customer’s delivery address instead of your own address so they can send the products directly to your customers.

In a drop shipping arrangement, your supplier will not include any information about their company so it looks like you are sending out the products to your customers yourself.

To make it easier to understand how this works, take a look at the graphic below:

Common Ways Malaysians Drop shipping

Here are some of the most common ways Malaysians are making money with drop shipping:

1. Drop ship on local marketplaces like Shopee, and Lazada or with us as seller on Jomshoppy Platform. Get drop ship suppliers locally or from common suppliers like Kumoten, Asago.

2. Drop ship on IG or Facebook. Get drop ship suppliers locally or from common suppliers like Chinabrand and AliExpress.

3. Drop ship on a branded e-commerce website. Get drop ship suppliers locally or from common suppliers like Chinabrands and AliExpress.

Why Dropshipping ?

Pro #1. No need to spend money on stocks

With drop shipping, all you have to do is upload product pictures and sell them. This drastically reduces the cost of starting your business as you won’t need to invest money into products upfront.

Pro #2. Easy to test and find winning products

As your cost is pretty much fixed to a website and marketing costs, you can test as many products – even up to thousands – to find one, or a few that will give you the best returns.

Pro #3. Low overheads for stock keeping and fulfilment

Without having to keep inventory with you or doing the fulfilment, you do away with all the costs related to managing a warehouse full of products or fulfilling products for customers.

How Do You Make Money as a Drop shipper?

Like any business, you make money with drop shipping by profiting the difference between cost and revenue.

The only difference is that with drop shipping, you don’t have to keep stocks of products. It takes care of the inventory and fulfilment part of your business.

For example, say today you are a drop shipper for perfumes. Your supplier sells you the perfume for RM10. You put the perfume for sale on your website for RM30. To market the product, you might spend RM5 per product sold.

This brings your profit to roughly RM15 per product.

 

So why wait. Start your dropshipping business with us today. Just copy and paste the product from the supplier to Jomshoppy and start selling.

We promote the product for you and you only pay us when your listing is sold.

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