I believe most people have heard of this word – Dropshipping, but believe it or not, it’s quite a new word to people in Asia market, especially Malaysia.
Some people have heard of it, but they might not have a clear picture on how it works.
And in fact, this is the key to start an online business with zero capital that we are going to cover in this topic.
They are most probably not aware that, with Dropshipping, they could start an online business with zero capital, scaling up within a short period, and eventually becoming passive income through automation.
Now, you are probably wondering, how can you start your own store with basically no money, because, surely you will need to have to spend money to buy stock and inventory to sell, right?
Well, actually, you may not have to.
So what is Dropshipping?
For those who do not know, Dropshipping is a method of product sourcing, and believe it or not, this is your key to start an online business with zero capital.
The best thing is that the store and the business basically cost nothing.
Further Read: Five Passive Income
Now let’s just say that you want to start an online store where you sell electronic products on ebay.
You may think that you will have to go out to a manufacturer or supplier, buy a bunch of electronics, and then go to list on your store and resell it, right?
After all, if you don’t buy a bunch of electronics, what are you going to sell in your store?
Of course this means that if you do this, you will need to spend a lot of startup money to buy all the electronic products, right?
You are spending thousands of dollars to do this and it will be a huge risk.
What if no one came to your store?
What if no one bought your product?
You would have lost thousands of dollars and you would be stuck with the inventory that nobody wants to buy.
But let me propose an alternative solution to do this.
Dropshipping – Online Business with Zero Capital
If you could build your own store and list a bunch of products to sell.
Then, when the customer orders these items from you, you go to the manufacturer and you order the item that the customer orders from you.
Then, instead of letting the manufacturer ship the product to you, let the manufacturer deliver it directly to the customer.
This means that you don’t need any start-up capital to sell the product, because you only need to purchase every item ordered by the customer and use the money that already paid to you.
Isn’t that sound good?
An online business with zero capital, and you could actually work from home, or anywhere in the world.
Well, this method has a name, and it’s called Dropshipping.
In addition to letting you start a web store with barely no start-up capital, it also means that you don’t have to ship every item to your customers, making it a super simple business model.
All you need to do is concentrate on building a store and let people see it.
You can let people enter your store for free.
Luckily, since this is a Dropshipping business, so your business model has almost no risk.
Because if no one bought items from you, you do not purchase any goods in advance.
If you open a store, you usually have to do this.
On the other hand, if you don’t sell anything, then you don’t make money either.
So you really need to focus on getting people to your shop.
Let me know in the comments below if you are currently doing Dropshipping in Malaysia, or looking to kick start one in Malaysia!