As a beginner, it’s crucial to know the facts about dropshipping before you decide to dive in. That’s why I decided to create this guide on the 13 most frequently asked questions about dropshipping.
We’re going to cover important topics like whether dropshipping is legal, common dropshipping mistakes beginners make, and much more.
Read the guide, learn the truth, and then decide whether it’s worth starting your own dropshipping business.
Here they are, the answers to your most frequently asked dropshipping questions.
Top 13 Most Frequently Asked Questions About Dropshipping
Let’s have a look at what people are asking most and have these crucial dropshipping FAQs answered.
Having said that, I’ll start with the most important and frequently asked dropshipping question of all time.
Is Dropshipping Dead?
To put it in short, Dropshipping is not dead and it most certainly won’t be any time soon.
How do I know that?
Well, the most basic reason is that I’ve seen the power of dropshipping first-hand myself. I know how powerful it is. But, obviously, that’s not enough.
If you want to see facts, one of the best dropshipping answers I can give you is to have a look at the global eCommerce market size statistics. It’s worth trillions of dollars, much of which is thanks to dropshippers all over the world selling their products.
How Much Do Dropshippers Make?
Seasoned dropshippers make around $100.000 per year on average. Now, this also means that some dropshippers make over $200.000 but some will end up making nothing at all.
You should also know that this is nowhere near the limit of dropshipping. You can scale and even reach seven figures after you’ve mastered the craft.
It’s only natural that this would be one of the most frequently asked dropshipping questions. People should definitely learn about the potential of dropshipping before they start.
Is Dropshipping Legal?
Dropshipping is a completely legitimate business that has been making people money for years. This is actually one of the most important dropshipping questions to ask, as it holds a lot of people back.
In fact, chances are extremely high that you’ve already purchased a product or two from a dropshipping store online.
So, how can you be sure that dropshipping is legal?
Well, we have an entire guide on whether dropshipping is legal or not. But, let’s also look at some examples.
We’ll take Jack Bloomfield as an example, one of the best eCommerce and dropshipping businessmen in Australia. By the way, Jack is already a millionaire at only 19 years old.
All of his stores are legit and have been functioning for years without issues even though he was a young teenager when it all started.
Can I Get Rich With Dropshipping?
The dropshipping business model is a low-risk and highly profitable way to make money online that can easily become your full-time job. If you develop your skills, then yes, dropshipping can make you rich.
Having said that, it’s quite hard to get rich quickly with dropshipping without learning any valuable skills, including copywriting, paid advertising such as Facebook ads for dropshipping, and more.
Can I Start Dropshipping With No Money?
You can definitely start dropshipping with no money. However, there are both upsides and downsides to this way of doing dropshipping.
The upsides of doing dropshipping with no money:
- You will have incredibly high profit margins
- There’s no stress from losing money on a bad product
- It’s an amazing way to learn quickly and hone your skills
The downsides of doing dropshipping with no money:
- It’s a much slower way to start earning money
- It’s more difficult to reach a lot of customers
Can I Start a Dropshipping Business As a Teen?
As one of the most asked dropshipping questions by countless teens, it definitely deserves a thorough answer. Even though there are a few more challenges, you can absolutely start a dropshipping store as a teenager.
The main obstacle you come across as a teen is that you won’t be able to have your own bank account and you can’t use your own ID to verify your store.
However, there is a way around this. You can ask your parents or an older sibling to use their bank account. This way, the profits will go to that bank account and they can then withdraw them for you.
Is Dropshipping Too Saturated?
Compared to previous years, it’s likely that you will find more competition today. However, that’s not nearly as important as you may think.
Even if dropshipping is saturated, it doesn’t mean you can’t make any money. Far from it, actually.
This only means that you have to focus more on creating value, branding your business, and truly helping your customers.
How Do I Find a Great Dropshipping Product?
In order to find a successful dropshipping product to sell, you need to do a lot of research.
A few effective methods to find great products include spotting early ads on social media that go viral, coming across a product that solves an incredible need or looking for a product that instantly grabs attention and fills an emotional need.
It’s no secret that learning how to find a winning dropshipping product can highly impact whether you succeed in dropshipping or not. For that reason, you should put a lot of focus on this step of the process.
How to Create My Dropshipping Store?
The easiest way to create your dropshipping store is by using Shopify.
This platform makes your entire process much easier. From designing your store to importing lots of products, fulfilling dropshipping orders, and everything in between.
On the other hand, you can still use a lot of amazing Shopify alternatives that you might even find easier to use. Out of all the dropshipping questions here, you don’t need to worry a lot about this topic. Just use any platform you find comfortable.
Why Would Customers Buy From Me and Not from AliExpress or Amazon?
If you correctly utilize paid advertising, you will mostly be selling to customers who don’t even know your products exist on AliExpress. In addition, you can master branded dropshipping and create loyal customers that will never think of buying from anywhere else but you.
This is done by instilling trust in your customers, offering valuable guarantees, creating beneficial offers, and providing as much value as you can that AliExpress would never come close to.
How Do I Handle Dropshipping Refunds?
The first thing you need to focus on is having as few chargebacks and returns as possible.
You can do this by providing great shipping times and making sure your supplier doesn’t send damaged products. You also must make sure to create a clear dropshipping return & refund policy.
On the other hand, if you do struggle with lots of chargebacks, you can take advantage of third-party services like Chargeflow.
They deal with returns, chargebacks, disputes, and similar uncomfortable and time-consuming situations so you don’t have to.
How to Pay Taxes When Dropshipping?
How you pay dropshipping taxes and how much you pay usually depend on where you live. This is oftentimes paid annually and based on a fixed percentage.
Just like any other business, paying taxes is important and should not be skipped. In addition, you can always hire an accountant or bookkeeper to take care of all this for you and hopefully even save you some money in the end.
There is no reason indicating that dropshipping won’t be profitable in the upcoming year. In fact, statistics and market predictions have lots of good news about dropshipping and the eCommerce market.
Forecasts say that the global eCommerce market is expected to grow an additional 15% between 2020 and 2027. This only means that now there’s even more money to be made with dropshipping.
These are some of the most asked dropshipping questions within our community that definitely needed addressing.
Now you have a much better idea of what dropshipping is, how it works, and crucial details regarding the business that can help you in the future. Keep the answers to these dropshipping questions in mind and don’t let lack of information hold you back.