Buying A Dropship Website – How They Make Money

There is no doubt that buying a dropship website is risky, but that is the same with any investment.

The reason investing or anything in life for that matter is risky, is simply because we don’t know enough about that subject. But risk is simply minimized the more we learn about it.

Which is exactly why I want to teach you all about the dropship business model before you all go out and start buying a dropship website.

First of all you need to know exactly how a dropship website runs. From how it makes it’s money, to what daily, weekly and monthly tasks are need to keep the business running at it’s current earnings. It would also be helpful to learn some dropship website strategies you could use to build your investment.

Once you have all of that covered buying a dropship website may just be the best investment you will ever make. It has been for me!

However for those who don’t know the basic business model of how a dropship website works, let me explain.

Basically a website using the dropship model will be a website that has various products listed on it for sale. With a few images of the product, the product description and maybe some good sales copy if the website owner knows what they are doing.

Now when someone visits this website and let’s say for example the website is selling basketballs and someone clicks on a basketball, adds it to their cart and goes to checkout to buy it. Once the customer has completed the order for this basketball the owner of the website will have an order logged in the backend of the website, where they too will most likely have that order emailed to them.

Because this website owner is using the dropship model, what they do is they forward this order to the wholesaler or supplier (which we call the dropshipper in the online world). From there the dropshipper will package up the products (in this case the basketball) and send it to the customers address for the website owner.

The dropshipper will then charge the website owner the wholesale price for the product, or basketball in this case. Whilst the customer paid retail for the basketball, meaning that the website owner keeps the profit margin, which is exactly how a dropship website makes money.

The coolest thing about these dropship websites is that those order emails can be automated to be sent directly to the dropshipper when a customer purchases. Meaning the only work for the website owner is a little bit of customer service via either email, or phone if the website business has a phone attached to it.

What I love about these dropshipping websites is that the customer purchases the product from you first, and then you go and buy that product for even cheaper. Which means it is a zero risk business where you sell before you buy, pretty cool right!

So there you have it, before buying a dropship website that is what you need to know about how it operates. I do highly suggest that you run a rigorous due diligence check before even buying a dropship website or any website for that matter. So you can completely understand the ins and outs of each website business because each can vary quite a lot and no two business are the same.

Remember learning more and educating yourself before buying a dropship website will minimize your risk, just like learning to swim will minimize your risk of drowning before jumping in the pool.

I am going to mention this quote (as I have many times), so for those of you who have seen or heard me quote it before I apologise. The world’s best and most famous investor Warren Buffet says – “The more you learn, the more you earn”. So keep learning, it’s in your best interest.