Two-in-One Gifts! The Dropshipping Business Model
LYNNIE VERSION
Would you like to read this article in more grown-up words, still easy to understand? Jump here.
Hi! I’m Lynnie! Today I’m explaining the dropshipping business model. Business model means how a business makes its money.
Every way to earn starts with an offer: what you really sell. And in dropshipping, it’s a bit tricky! You actually offer two things at once. A computer service to the helper company, and a real product to the shopper.
(Our article on what you can sell online explains the four kinds of things to sell.)
Two at once
In most ways to earn, you sell one thing to one kind of customer. In dropshipping, you help two people at the same time! The helper gets a service. The shopper gets a product.
The service for the helper
How is it a service? Remember value-added dropshipping? You find a new job for the helper’s product. Then you show it to the world in your own way.
You use your ad money to reach shoppers the helper would never have found. That’s a marketing service! You bring the helper new orders.
Helping customers too
And you help the customers, instead of the helper. That’s a big job! Shoppers ask about delivery, sizes, how to use it and returns. They want fast, friendly answers. Every answer is part of your service.
So your margin…
Part of your money, your margin, comes from this service. You’re paid for finding, showing, advertising and helping. That’s why a margin with none of that is hard to explain!
The product for the shopper
This part is easier. The shopper gets a real product at their door after ordering in your shop.
It doesn’t come from your house. It comes from the helper’s storage, and the helper sends it straight to the customers you brought.
But for the shopper, YOU are the seller. They expect it to match your description and arrive on time. That’s why testing products and picking good helpers is so important!
Your everyday work
Four parts: finding and testing products, showing and advertising them, running your shop and helpers, and answering customers. Most money goes into ads. Lots of time goes into helping customers.
Is it for you?
Three questions:
- Do I like finding products and new uses for them?
- Am I okay with ads and watching the numbers?
- Am I ready to answer customers patiently, even about problems I didn’t cause?
Three yeses? Dropshipping might fit! If ads or customer help sound stressful, print-on-demand in a big mall might be a gentler start.
Three oopsies
- Thinking you’re just a reseller. That leads to lazy shops!
- Forgetting how much time customer help takes.
- Forgetting the helper’s quality becomes YOUR name. A bad product looks bad on you, even if you never touched it.
A story
A shop owner shows a simple silicone mat as a no-mess painting mat for toddlers. For the helper, she brings hundreds of new orders from parents. For the parents, it’s a handy solution at their door.
She answers every parent’s question about cleaning and sizes. Her margin pays for her ads, photos, testing and time.
What’s next?
The next article shows how dropshipping works, step by step. The whole module is in the book on our products page. Want a grown-up to help with your idea? Go to our services page.
What grown-ups usually ask (and I answer)
Who owns the customer relationship?
You do! So you can invite them to your newsletter.
Do I need ad money?
Usually yes. Plan a small test budget.
Can I use my own brand?
Your shop can, but never say you made the products.
What do I offer in dropshipping?
A service to the helper, and a product to the shopper.
Why is it a service to the helper?
You find a new job, show it, bring shoppers, and help customers.
Why is it a product for the shopper?
They get a real thing at their door.
Will there be step-by-step lessons for each of the ten ways?
Maybe! If lots of people want them. Join the waitlist and you’ll know first.
Can I start dropshipping for free or almost free?
Lynnaider shows you ways that cost nothing, or very little. You’d be surprised! And a free robot helper called Lynnaider Compass helps you step by step.
Disclaimer: This article is for general informational purposes only and should not be regarded as legal, tax, or business advice. Pursuing an online business does not guarantee income; results depend on many factors including the business environment, individual effort, skills, and consistency. Some links on this site may allow Lynnaider to earn a commission at no additional cost to the reader.
