If someone is looking to step into the world of e-commerce, then DropShipping is a good idea and a popular method to make money. Some people love to start Dropshipping Business, but they usually drop their idea due to a lack of knowledge. In this blog, I will be discussing the question and answer related to this for all those who are planning to open their store.
Here are some questions the Interviewer can ask you in your DropShipping interview
Q1. What is DropShipping?
Ans. Dropshipping is a business model in which you set up your online shop, take orders from the customer, and your supplier will send the goods but with your business label. It is the most attractive form of Business as there is no need to hold inventory. It would be best if you had a laptop, a good internet connection, a supplier, and the demand for the product.
Q2. What are the pros and Cons of Dropshipping?
Ans. Pros of DropShipping:
- It’s easy to set up. You only need a website, a supplier, and you can start selling your goods.
- The cost of setting up DropShipping is next to nothing as many other Businesses require the starting cost like setting up of inventory.
- The Business is location independent and can be run from anywhere.
Cons of DropShipping:
- The Profit Margin is slightly low as compared to manufacturing and wholesaling.
- There is an unlimited liability when something goes wrong because the customer purchases from the retailer’s website, so if the supplier supplies something terrible, the liability falls on the retailer.
- Level of Competition is Relatively High: The attractiveness and popularity of the DropShipping business model mean more and more retailers in every segment and niche. Unless a retailer is catering to a particular part or place, the competition could be detrimental.
Q3. Is Dropshipping Profitable? How can you earn profit from this Business?
Ans. Usually, the profit margin varies between 15%-45%. There can be 100% in consumer durables and luxury goods like jewelry, electronics, etc. The only way to earn a profit is to contact the manufacturer or wholesaler directly and not the supplier. The elimination of intermediaries will help you achieve higher profits.
Also Read – https://shamsherkhan.com/blog/seven-categories-brands/
Q4. What are the mistakes you need to avoid in Dropshipping Business?
Ans. Mistakes to avoid are:
- Do not base your choice of product on what your likes and dislikes are.
- Please do not sell the actual copies of your product to the customers as it will not get you anywhere but will destroy your image and is illegal.
- You should not pick up the product because everyone is selling this product. Always select the product that is trending as there is so much competition in the market.
Q5. How to handle the Dropshipping Inventory?
Ans. In dropshipping Business, you don’t personally maintain any inventory. As a retailer, you may still be required to manage inventory orders if your orders are not forwarded automatically to your dropshipping supplier. This process can be time-consuming and tedious, but it is now inventory management software available online, and many drop shippers will have an app you can connect directly to your Shopify store so you can automatically forward your orders.
Also Read https://shamsherkhan.com/online-courses/dropshipping-business-training/
Conclusion
So this concludes our definite guide to Dropshipping interview questions. I hope you like the above mention questions and their respective answers. This will surely help you in the future. For setting up this business model, you need passion and some effort. Do remember to answer all the questions with confidence.
Share this with the people who may find it helpful, and if there are any tricks or suggestions, do write it in the comment section below.
