Find out what dropshipping is and how it works , the best way to open an online store without shipping costs and without stock. Here’s how to find the best suppliers.
If you want to make money online, a good method is to agree with a supplier to sell their merchandise on the Internet for a percentage and create what is commonly called dropshipping .
Index
- What is dropshipping
- How dropshipping works
- The types of supplier
- What the taxman says
- Piattaforme dropshipping
- Dropshipping Italy suppliers
What is dropshipping
Dropshipping is a type of e-commerce born in the United States about 15 years ago. Its meaning is drop shipping; to indicate a system in which you sell something you don’t actually own. To do this you must make arrangements with a dropshipper (supplier) by entering into a contract where you undertake to sell the products online in exchange for a commission.
You can open an online store , for example on ebay , or open an e-commerce site. Therefore, you will not have to invest money to buy the products before selling them or to rent a warehouse. The supplier will take care of all this.
How dropshipping works
This doesn’t mean making easy money. Before starting dropshipping, it is always good to identify the market niche you want to cover. Do online research and identify the product category that is not easy to buy on the Web. Take into consideration, for inspiration, both Italian and foreign shops.
In dropshipping you will have to contend with unorganized and unfair suppliers, fierce competition and difficulties in making your shop known.
You will need to find a reputable supplier, also because you will have to try to get yourself a good commission on sales. The average commission must be equal to 15/20% of the initial price of each product.
The types of supplier
Suppliers are divided into three types: Intermediaries , stockists and wholesalers .
Intermediaries are responsible for helping you select the suppliers that best suit your needs. They usually put you directly in contact with wholesalers willing to do business by taking advantage of dropshopping and providing you with a list of products to upload to your site.
Stockists are those who buy wholesale merchandise from multiple manufacturers to sell to retailers. They too, like intermediaries, apply a surcharge to the goods with respect to their initial cost, but do not ask to incur fees related to the service. They also take care of shipping the product. By relying on multiple stockists you can have a large catalog even if you risk proposing identical items to thousands of sites.
Wholesalers or manufacturers are the ones you can contact by phone and make an appointment to get by on your own. Each manufacturer will have to provide you with a few selected products to offer them at competitive prices, also because there will be no service fees to be considered as happens with stockists and intermediaries. Also consider contacting stores that want to get rid of inventory to make room for new products. You will be able to sell at really rock bottom prices.
If you don’t want to invest money in creating an e-commerce, like Shopify , you can always sell through the Marketplace by placing the products on the windows of sites like eBay and Amazon . On the latter sites you just need to register as a seller and open a shop by paying a little a month. Listing fees will apply to each item you sell, and when you sell, you will need to pay eBay or Amazon a commission on the final price.
What the taxman says
Dropshipping is part of the e-commerce business. For the taxman there are no differences between an online shopkeeper who operates in dropshipping and one who purchases the goods from the supplier by managing the warehouse and shipments.
Certainly with dropshipping you will have to open a VAT number and be registered in the business register to sell in compliance with the laws. Then you have to subscribe to the INPS Commercianti management (minimum annual expenditure of 4 thousand euros, which increases based on the annual income of the activity). Finally, it is necessary to present the certification of the start of business or SCIA at the counter of the SUAP municipality where your company has its registered office.
For more information, my advice is to contact an accountant expert in the tax regimes applied to those who trade online.
As for billing, the same rules apply as for e-commerce stores. The dropshipper’s invoices are recorded among purchases, while each successful order corresponds to a sales invoice or a receipt. The matter becomes complicated for purchases from foreign suppliers. In this case, customs duties also come into play, for goods with a value greater than 22 euros.
Try to choose dropshippers that operate in Italy and you will see that you will not have any surprises.
Piattaforme dropshipping
In Italy there are several sites that allow you to launch dropshipping activities. Among the best, as already mentioned in the previous chapter, we find: Shopify, eBay and Amazon .
Shopify, for example, offers dropshipping apps that allow you to start selling in no time without having to think about inventory, packaging, and shipping. You can open your shop, with tools and services, and get all the information from the platform to set up your brand, and make your online presence felt.
Among the plans offered by Shopify, in addition to having a free 14-day trial , you will find hosting and unlimited bandwidth, free domain name, SSL certificate, and much more. You will have the ability to manage unlimited products, generate marketing campaigns on Facebook and Google, create SMS and newsletters and fulfill orders through various payment methods.
Among the best dropshipping suppliers with the Shopify app we have:
- Dripshipper: is a coffee supplier.
- DropCommerce: This is an American dropshipping provider.
- DSers: import dropshipping products from Aliexpress.
- FashionGo: is a dropshipping supplier of fashion, beauty and home improvement.
- GlowRoad: dropshipping from Indian suppliers.
- Printful: is a print on demand dropshipping provider.
- Sync2Fashion: clothing dropshipping supplier.
The Amazon marketplace also offers the possibility to create a seller account both as a private individual and as a company with Amazon Business . With eBay , on the other hand, a private individual who wants to start selling has 150 free listings in the Online Auctions or Buy It Now formats . Once the limit of 150 advertisements has been exceeded, you will have to pay € 0.35 per advertisement. Find more information on this page .
Other interesting dropshipping platforms to consider are Prestashop and Etsy .
Dropshipping Italy suppliers
Once you’ve set up your online store, you’ll need to find reputable suppliers . In addition to the speed with which they will have to process orders, they will have to guarantee attention in packaging, respect for shipping times and above all the quality of the products. You will have to follow the customer throughout the purchase phase and offer all the assistance necessary to have a good reputation.
Below is a selection of sites for dropshipping and starting your business on generic products .
- Printful
- BigBuy
- Aliexpress
- Bazarissimo
- DropShip4u
Dropshopping clothing and accessories suppliers
- BrandsDistribution
- B2B Griffati
- Modalyst
- Fashion & Luxury
Dropshopping technology products suppliers
- Price OK
- Cometa Spa
- Ingram Micro
- Runner Spa
- IC Intracom Italia
Dropshipping suppliers for the home
- MyShopCasa
- LightInTheBox
Dropshipping suppliers of other categories (jewelry, herbal medicine, baby items, health and beauty, etc.)
- eMotiko
- Babydistribution
- Straight
- Printify
- Melform
- Online Herbalist
- Restaurant Store Group
- LedLux
- Dropshipping1style
