Dropshipping 3-Person Model Explained
54sClearly explains the core business model with three roles, making it easy for beginners to understand.
▶ Play ClipThis video explains the dropshipping business model, its advantages and disadvantages, and provides a beginner-friendly tutorial on how to start. The speaker covers the roles of customer, supplier, and store owner, and highlights key challenges like competition and supplier dependency.
Dropshipping involves three parties: customer, supplier, and store owner. The store owner markets products, takes orders, and the supplier handles packing and shipping.
Example: Product costs ₹700 from supplier, sold for ₹1000, profit ₹300. Store owner doesn't handle inventory or shipping.
No need to buy stock upfront. Only costs are website creation and marketing (e.g., ₹1000 for marketing).
Many sellers offer same products, leading to price wars. Beginners may get lower margins compared to established sellers.
To beat competition, find unique products or niche items (e.g., specific clothing like churidar) not widely available.
Supplier issues (packing, stock) reflect badly on store. Refunds and stock accuracy are challenges.
Dropshipping involves risk; requires time and learning. Many succeed in 2025 but it's not easy.
Shopify is a dedicated dropshipping tool. It can connect with Indian suppliers for automated order fulfillment.
Dropshipping offers low startup costs and flexibility but comes with high competition and reliance on suppliers. Success requires finding unique products and using tools like Shopify to automate processes.
"Title accurately describes the content: a beginner tutorial on dropshipping in Malayalam."
What are the three parties involved in dropshipping?
Customer, supplier, and store owner.
00:34
In the example, if a product costs ₹700 from the supplier and is sold for ₹1000, what is the profit?
₹300.
01:44
What is a key advantage of dropshipping regarding inventory?
No need to buy stock in advance.
02:15
What is a major disadvantage of dropshipping related to competition?
High competition leads to price wars and lower margins for beginners.
03:57
How can a dropshipper overcome high competition?
By finding unique products or focusing on a specific niche.
05:03
What tool is recommended for automating dropshipping?
Shopify.
08:11
What is a risk of relying on suppliers in dropshipping?
Supplier issues like poor packing or stock inaccuracies reflect badly on the store.
06:06
Profit Model Explained
Clearly illustrates the profit mechanism with a concrete example.
01:44Low Cost Advantage
Highlights the key benefit of no upfront inventory costs.
02:15High Competition Warning
Emphasizes a critical challenge that beginners face.
03:57Niche Strategy
Provides actionable advice to differentiate in a crowded market.
05:03Shopify Automation
Introduces a practical tool to streamline operations.
08:11[00:03] business online and earn some money. Do shipping is an e-commerce business. When we say e-commerce business, there are many things going on inside it, but there are
[00:19] we buy a product and store it, or pack that product and send it. Although it is fun to profitable, but there are problems in it. So,
[00:34] I will explain all the advantages and disadvantages of this in detail in this video listen carefully, everyone. First of all, this drop shipping involves three I said it's an ecommerce business. There will be three people in this, one
[00:48] is the customer, two is the supplier, and three are us. We are the owners of this e-commerce. Okay, now this is the business idea that these three people are running. I am saying that we should develop a store,
[01:02] it, and promote this online store. If we want. We can do it through social media or customer by telephoning method.
[01:18] Whatever type of method it is, it is okay. Anyway, purchasing a product worth Rs. 1000. When purchasing, to whom will this order go? Will it go
[01:30] What will the seller do with this product? Pack and send it and when you send it, the customer will put the product in the customer is happy. The
[01:44] 700 rupees. But your is 300 rupees, saying that you sold it for 1000 rupees. This is how we work this business model, except that product ourselves, we do not pack it, we do not send it, we do not do any
[01:57] shipping. This is the procedure. We need to know its advantages and disadvantages, only then can we know whether we should go ahead with it or not. One important advantage is that it is low in cost. There is no
[02:15] any stock in advance. This is a benefit that we can do. We only need to create a website. Plus, there is a cost for marketing it. The cost we incur or the cost of creating an app is that the app will initially only require a website. We have to spend
[02:28] only require a website. We have to spend 1000 rupees for marketing. We are spending 3 for this marketing. Now, if we
[02:42] That is, we can prepare a single landing page and list only one product on it. If we Or if we want, we
[02:56] Facebook in both places. Now we can use to do all of the Google Ads stuff . You can run ads, such as Pinterest ads. You can do all this or telecalling as I said
[03:11] . Or you can run ads and stuff in the theater You can run ads on many websites. You can run ads in newspapers. can run ads on other digital websites or anything. So,
[03:26] This is what is called a method for this. need for any major expenses. Similarly, I mentioned shipping earlier, you don't
[03:42] a few marketing expenses and money, we We must pay attention to all this. This is a very important matter.
[03:57] doing this just like us. We are currently doing a drop shipping. the competition is very high. In the case we mentioned earlier, we are selling a product worth 1000 for ₹1000, which would give us ₹700. Sometimes, we can find people purchasing the same product that we sell for ₹1,000 on
[04:11] Sometimes, we can find people purchasing the same product that we sell for ₹1,000 on . There will be different prices for the same item in different stores sellers will offer the goods at a lower rate . So, let's say
[04:24] another party who is also a drop large store means there will be many customers. So I'm year of experience with the seller. So what does the seller do? He'll give it to me for ₹600.
[04:37] me for ₹600. less. So I feel comfortable and can sell it for ₹700 if I want . There is a profit of ₹100. So, he is thinking about
[04:49] a beginner who has just come to the second Kashi, which he . So I'm the competition is fierce . Therefore, it is important to find
[05:03] unique products that are not available on most websites clothing items, you can find a special niche. You can do it only with the specified items and only with the materials of the churidar if you
[05:17] want. There is Shipping 499 Rupees Only All Products 499 Only Churidar Available Can Be Changed In Store . Once a lot of people have built a unique
[05:32] product as it is added . So you can do it. It is . There are several other
[05:48] e-commerce. We can find the manufacturer as the main one.
[06:06] . Pay attention to that. That is a disadvantage . Similarly, having to rely on this supplier for everything is also a disadvantage. The supplier just bad name. We didn't do anything in the store . It's too bad we sent the next supplier
[06:19] . That means the packing is not correct. So, what is the issue with the product when it reaches the customer? If there is any issue with the product when it reaches the customer's end, it is all because of the supplier. So . So if you want a refund from this supplier, send it back. If you want
[06:33] So there's no doubt that we'll get the job if we don't have a good relationship with the supplier . This is a disadvantage. It is first thing is that it is difficult to know the stock. They might tell us 10
[06:46] But they won't have any stock in hand. They must be . Now, if we say the most serious problem, we will run the add-on for it . Whether we're deep into Google Ads or Met Ads,
[06:59] We have invested a lot of funds and then we have to practice and practice until we get a little better . That's a big deal. But nowadays, there is no need to study so much by taking such deep taking so many courses . There
[07:13] are many websites that offer a basic course for us. We can learn about meta ads by visiting those websites or watching YouTube . After learning, when we need support,
[07:26] . Similarly, Similarly, verify it accurately?
[07:41] nowadays, one is this competition, and two is the main challenge, it other programs have so many disadvantages and advantages, and so on lot of people doing drop shipping in 2025, a lot of
[07:57] people are earning a lot of money, but remember, we always involve a lot of risk in this business. little one or two hours and try it out.
[08:11] us to try. The us to develop. called Shopify. It is a tool dedicated only for drop shipping.
[08:26] also add drop shipping products. Shopify itself is a good supplier available in India. If we connect them and place an automatic order, deliver it. Then all this will be fully automated and work in our store.
[08:39] one click, and we Shopify is such a tool. Of course, if you need a detailed video of Shopify, just comment. After commenting, I can prepare a
[08:54] detailed video showing everything that goes into building a store on it. It's things are required. You don't have time to be someone else's store clerk anymore . If you feel like you have nothing to do,
[09:10] our DL things. Similarly, there are . Videos of such business IDs will be shared in the coming days . So
[09:23] leave your valuable comments and suggestions in the comment box. We'll see you tomorrow for another great video. Is me Shawnee We'll see you tomorrow for another great video. Is me Shawnee signing off bye bye.
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