What is Dropshipping and How to Make it Work for Your Business

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What is Dropshipping and How to Make it Work for Your Business

DropShipping Explained

Dropshipping products

Is dropshipping worth it? 


Nowadays, many business owners are looking for additional ways to increase their profits. As some businesses suffered during this time, others have found more creative ways to earn extra income. Dropshipping is a great way to collect additional revenue without doing much work. Let us explain to you how this works: 

What is DropShipping?

Dropshipping is a business sales model that allows the retailer to transfer customer orders to manufacturers or wholesaler, who then sends the item or merchandise directly to the customer. This supply chain management system is beneficial to both the retailer and the wholesaler because the retailer does not need to hold inventory, and the wholesaler won’t have to focus on customer service or marketing. Dropshipping retailers can either be individuals, website owners, or businesses. Retailers usually choose dropshipping products that align with their brand or business and earn a commission on every sale. 

How to pick products to dropship

Dropshipping vs. Affiliate Marketing

Dropshipping and affiliate marketing are both fantastic ways entrepreneurs can increase their company’s profits. The main difference between drop-shipping and affiliate marketing is that dropshipping allows you to set your own product prices. With both methods, you are responsible for the marketing of the products; however, with affiliate marketing, you are limited to the commission set by the wholesale company. 

Dropshipping and Affiliate Marketing Similarities

Dropshipping and Affiliate Marketing are very similar in many ways. If you are looking to increase your business’s earning potential, understand that both selling strategies: 

  • Allows the retailer to be free on inventory or shipping goods 
  • High potential earnings 
  • Quick and easy to start
  • Low-risk
  • Requires some marketing experience including online advertising and ad creation 
  • Small startup costs 

How to start dropshipping

Dropshipping Pros and Cons

When compared to affiliate marketing, dropshipping is a safer business model. Though neither model requires the retailer to hold any inventory, dropshipping funds are generally more available. In contrast, affiliate marketing programs usually require you to meet a specific criteria before you get paid. For example, payments for affiliate marketing programs may not be distributed until the retailer earns a $100 credit. 

Dropshipping Pros:

  • High-profit margins 
  • Brand building 
  • Easy retargeting 

Dropshipping Cons: 

  • Manage your own customer support 
  • Manage your own marketing 
  • Highly competitive 
  • No control over supply-chain 
  • Possible legal liability issues

how to start drop shipping

How to Start Dropshipping

Starting a dropshipping business is not as difficult as you think. In fact, if you have your website, you can create a dropshipping business with just a few clicks of your keyboard. The first thing you would need to do is pick a dropshipping wholesaler that aligns with your brand.

While some dropshipping companies will start you off with a basic free plan, others will cost you anywhere from $30-$100 a month in order to be a part of their program and have full access to their inventory and products. 

Is dropshipping worth it

How to Pick Products to Dropship?

Drop-shipping can be very profitable; however, it can also be very competitive. In order to give you the best chance at success, Yescomusa has compiled a list of suggestions in order to average the best sales: 


Find a Focused Niche. Finding your niche market is an important goal because it will determine your earnings. Using less popular products and finding the customers that need them shows a deeper understanding of your market and gives you an advantage over your competitors. 


Think about your Price Point. Once you’ve learned exactly who your target market is, choose a price point that is appropriate to them. Do not overcharge for younger crowds or markets that might not be able to afford your merchandise. Research similar products on the market, make your inventory unique, and charge accordingly. 


Research your Wholesaler. You don’t want to use a wholesaler that has a bad reputation. Before you decide to partner with a dropshipping wholesaler, be sure to take a look at their reviews. See what customers are saying about their dropshipping products and expect similar reviews. 

drop shipping

Grow Your Business From Home With Yescomusa 

All successful businesses have multiple forms of income. Learn how to start dropping and how to pick products to dropship in order to brand your business in a way that makes sense to your customer. Companies start at home, so be sure to take care of your home office.  Enjoy our home and office collection for more insights on home renovations. Save on purchases when you join our Yescom Rewards Program and follow us on Facebook and Instagram for coupons and other sales information.

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