Dropshipping FAQ

Reading Time: 7 minutes
Reading Time: 7 minutes

1.What is dropshipping?

Dropshipping is a supply chain management method where the company needn’t require keeping inventory or owning or renting a warehouse. The customer places an order on the company’s website which is forwarded to the dropship supplier along with the customer’s shipping details. The supplier then packs the order and ships it directly to the customer.

This crisp business model eliminates the need for physical spaces (offices or storage ) making it very attractive and attainable even for budding entrepreneurs on a low-budget.

Read more about dropshipping here.

2. How do I start a dropshipping business?

  • Choose an idea

Research trending business ideas. Find either popular dropship products or niche products, depending on your skillset and interests. Niches like health and beauty, IT, office-supplies, watches, headphones, etc. are evergreen.

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  • Build a store

VARStreet stores are easy to build and design. Set up your domain name. Design your ecommerce store. Add your products, descriptions and images if you sell outside our distribution network.

VARStreet eliminates the cumbersome process of uploading your product feed, writing product descriptions, sourcing and uploading images etc. We come integrated with direct feeds from 40+ IT and office supplies distributors.

All you need is an account with one or multiple distributors of your choice and their product catalogs are automatically pulled into your ecommerce store along with rich content like images, descriptions, tech specs, etc.

Build your Ecommerce Store with VARStreet

  • Market your store

Market your dropshipping business on various platforms such as Facebook, Pinterest, Google and Instagram. Implement SEO best practices and rank well on search engines like Google, Bing, Yahoo, etc. 

You can contact influencers who have a good following or get free media coverage by contacting reporters or publications. Creating content through blogging is a great way of attracting traffic to your ecommerce website.

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3. How does dropshipping work?

Dropshipping is an extremely easy business model. The retailer lists products for sale on their ecommerce website. Once an order is placed, the seller forwards the order to the supplier who then packs and ships the product to the end customer under the retailer’s name.

4. Is dropshipping profitable?

Is dropshipping profitable

Since you don’t have to manage inventory or ship the orders, you are able to reduce your costs with no need to hire people or gain additional infrastructure. With low risks and costs involved, you are likely to get profits faster than other business models.

5. Do I need to buy inventory for my online store?

No, dropshipping does not require you to buy products beforehand. When the customer buys from you can then order the product from the supplier.

It is recommended to get sample products before you upload them on your online store so that you run tests on them and feel satisfied with the quality.

6. Do I need a registered business to dropship?

Yes, you do. It is a legal requirement in the United States to register your business and obtain a sales tax id.

7. Is dropshipping a legal way to carry out business?

Yes, it’s totally legal! Dropshipping is an order fulfillment method. Ecommerce businesses can set up their websites and legally sell products online without holding inventory.

You can even sell on marketplaces like Amazon and social media stores. Big retailers like Wayfair, Home Depot, Lowes, and Amazon also work on the dropship model. 

VARStreet ecommerce FAQ

i. What is VARStreet?
VARStreet is an all-in-one business management platform for IT & office supplies VARS. With VARStreet you get a modern ecommerce store backed by a dynamic aggregated catalog from 40 + IT and office supplies distributors and a tight back-end integration that streamlines your order processing and procurement. 

ii. How does ecommerce with VARStreet work?

VARStreet stores are highly customizable and easy-to-use. Setting up a store is super-easy with our pre-designed themes, customizable templates and prebuilt widgets.

Our robust back-office module and direct integrations with 40 + IT and office supplies distributors eliminate the need to manually upload products and rich content to your store.

The process is fully automated and hassle-free. Products get pulled into your ecommerce store along with high-quality images, product descriptions, tech specs, etc.

Setting up an ecommerce store is convenient, easy and fast with VARStreet.

iii. Do I get product feed from distributors by just buying VARStreet?
If you are an existing reseller, partnered with any of the 40 + distributors in our network, you only need to provide VARStreet with your account numbers with the distributors and the product catalogs will be pulled into your VARStreet ecommerce store, along with the rich content.

Do you sell products outside our distribution channel? Bulk upload your custom catalog on VARStreet. 

Not a reseller but wish to start an online business? Set up an account with any of the distributors in our distributor network and start selling. Setting up an account with a distributor is an easy process, most distributors have a reseller application on their websites.

iv. Do I pay for product feed as I add distributors?
No. There is no additional cost to scale. That is the beauty of VARStreet and what sets us apart from other ecommerce platforms. You pay VARStreet a flat rate whether you sell a hundred products or a million!

v. Do I need to install distributor plugins?
No, you do not. You do not need additional plugins to get distributor catalogs. You only need a reseller account with the distributors and their product catalog is pulled into your ecommerce store.

8. Starting Your Online Business with VARStreet FAQ

i. What investment would I need to make to start an online business?
Dropshipping has lowered the entry barrier to start an ecommerce business. And starting an ecommerce business with VARStreet requires a minimum budget. The only initial costs would be buying a VARStreet subscription, which is very affordable compared to other ecommerce platforms.

There is no additional cost to scale either. A flat rate is what you pay. 

A few other costs you would incur are marketing costs that you can control based on your budgets. There are a lot of free marketing strategies that you can implement to further reduce costs.

Writing a blog is a great way to drive traffic to your ecommerce store. Implementing SEO like H1 tags, meta-titles and descriptions etc. is mandatory to rank well on search engines like Google, Yahoo, Bing, etc. 

Read more on SEO and how it can help your ecommerce store here.

ii. Is there a limit to the number of products I can import to my VARStreet store?
Absolutely not! We do not want to limit you; we want to help you sell more. VARStreet is one of the few ecommerce platforms that supports a product catalog running into millions. You have a vast dropshipping inventory to choose from without paying any additional fees!

“We do not want to limit you; we want to help you sell more”.

iii. Where do I get the product pictures for my ecommerce store from?
An ecommerce store without good content will not sell. That is why top ecommerce businesses shell out thousands of dollars only on rich content. If you’re just starting out or do not have the budget to spend a bomb, do not lose heart.

VARStreet has partnered with top rich-content providers like Etilize and IceCat, to get you rich content like high-quality product images, thumbnails, product descriptions, tech specs, etc. absolutely FREE.  VARStreet integrations automatically pull the rich content into your ecommerce store. 

iv. Do I write product descriptions myself?
VARStreet provides you with rich content like short and long descriptions for FREE! But we do not restrict you, you can choose to write product descriptions if you want.

v. How easy is it to design a VARStreet store
How easy is it to design a VARStreet store? 

How easy is to change a light bulb? Yes, designing your VARStreet store is as easy! We have hundreds of pre-designed templates and prebuilt widgets to help you design your store in no time at all.

Every aspect of our themes is easily customizable. You can easily change the branding, add logos, change colors and a lot more. Our motto while developing the ecommerce platform was to ‘keep it simple’!

We have developed a theming language too that will give the more tech-friendly a lot more control over every detail of their ecommerce store.

Our team of experts is always available for you. Let us know if you face a roadblock and we will clear it for you. Let us know if you do not have the time to design your store, we will design it for you and get you ecommerce ready without you touching the keyboard.

vi. What if I want to add custom products to my catalog?
VARStreet allows you to add custom products and bundles to your ‘Custom Catalog’. You can add services like training, installation, repairs and maintenance, etc. to your ecommerce catalog too.

vii. Can I sell on Amazon?
VARStreet’s catalog export feature lets you export your catalog to Amazon and start selling. You can sell on other marketplaces like eBay and Google Shopping as well as on Facebook and Instagram too.

Read more on why you SHOULD sell on Amazon and other marketplaces.

viii. How will my customers get the shipping and tracking information?
Our integrations with the distributor’s systems send the tracking information automatically to your customers.

ix. Do customers care about long delivery times?
Yes, they do. Distributors based overseas leads to longer delivery times. Clearly define your shopping policies and communicate it effectively on your online store so that your customers know what to expect and are informed about their order status all the time.

x. How does VARStreet help shorten delivery times?
The advantage you have with VARStreet is that all our distributors are in the United States and Canada, cutting down on delivery times drastically. This results in increased customer satisfaction and is better for your business.

xi. Can I customize products on my VARStreet ecommerce store?
Yes, you can. You can also configure products and sell bundles.

xii. Can I sell a service?
VARStreet allows you to add a service as a separate SKU.

xiii. Can I combine a product and a service?
Yes, you can bundle a product and a service together.

xiv. What are the shipping options I have?
VARStreet integrates with all major freight companies like FedEx, UPS, DHL, etc.

xv. How do I accept payment on my store?
VARStreet supports multiple payment gateways like Authorize.net, Diamond Mind, PlugNPlay, etc. All VARStreet ecommerce stores are PCI compliant and you can accept all major credit cards like Amex, Master, Visa, Diners, etc. 

Set up your store and start selling in minutes through our PayPal integration.

xvi. How are tax and freight calculated?
VARStreet auto-calculates freight and tax based on geographies and currencies. You can also set rules to over-ride settings as per variables. 

If there is anything else you’d like to know more about and wish was included in this article? Let us know in the comments below!

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Yes, every single one!

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