About dropshippingDropshipping is a simple business model which allows another company to engage in product sales without having to maintain an inventory or producing the goods on its own. It is a successful model very common online these days and people who have understood this model well have earned good profits out of this. In this model customer pays the manufacturer or distributor they in turn send the product to the customers and shipping/ tracking details to the Dropshipper. Ideally the dropshippers role is that of a marketer, as he is only marketing the company products and hence there is no inventory required, no dead stock hassles nor has much overheads, making this as one of the most lucrative businesses for new business owners.
Advantages of dropshipping
- One of the biggest advantages of why people are heading to start dropshipping business is due to low investment cost.
- No production cost
- No warehousing cost
- No physical office required
- Can be run from anywhere in the world
- Can promoted products globally, except in countries where some products may be banned.
- Quick and easy to set up, as compared to any physical retails store
- Hardly any man power required.
- You can make your own delivery and shipping policies.
- Hassle free packing and shipping
- No worries about handling the returns.
- No dead stock to maintain
Disadvantages of dropshippingAlthough there are lesser disadvantages to dropshipping business, as you must understand that this is a very competitive market. Due to ease of business you will find many competitors here, which means if you do not find a niche product you will have to work with lower margins. Therefore, this is the first step where you must research your niche product well before stepping into dropshipping business, so that you will have lesser people selling the same products and you can concentrate upon sales but building effective sales strategies, to stand out to be successful. Another downside is, if a distributor or manufacturer you are working with has shipping or quality issues you will have to face the customer and get it resolved with the supplier company. To avoid the brunt of customers always check the suppliers’ reputation online and offline if possible and then start working with them. A reliable partner who would stand by you in this is of prime concern.
Are you wondering if is is worth to start a dropshipping business?As you have seen above there are more advantages then disadvantages to dropshipping business, and like every business model this also as a couple of pitfalls you need to watch out for. So far seeing the popularity I am sure you will be motivated to begin the journey on a good note. It is an incredible business to do where if you are able to give time to it consistently, you will be able to reap the benefits more than you aspired for.
Start a dropshipping business with fewer productsDo not get amazed by the different company products and start approaching them for dropshipping business, instead choose one or maximum two companies offering the dropshipping services with a single product. Beginning like this would make it easier to reach out to customers and vice versa. Potential would be confident in ordering from you as you stay focused on each product and customers and follow up for timely delivery and handling grievances gracefully. When you do this customers would leave behind good reviews behind of you and your business would scale up easily, without having to spend much in promotions for sales or marketing.
It is important to understand the product and customersWhile you are selecting the products go for the ones which would sell at good profit margins, as it is needless to mention that it is going to take same efforts from you to sell/ market them, whether you sell a $2 product or $10 product. Your choice of products should be such that, customers cannot find them easily online and in retail stores, if you happen to find such few niche products, You must also check the feasibility and demand for such products, else that product may backfire in performance for you.
How to start dropshipping for freeOnce you choose a dropshipping platform you are comfortable with, it could be sites like Shopify store, aliexpress, and many such options. All you will have to do is the following:
- Sign Up and create an account.
- There are usually several themes to choose here. Once you choose the one you like which is close to your product line, simply install it
- Personalize your store, customization of your store will speak volumes about who you are and what you are offering, add a logo, and menu showing all your product categories and many more features as in an ecommerce website
- Upload the product images with good descriptions, so the customer gets to make their decisions. Although the pictures and descriptions are given by the supplier, it is best to create your own description and personalizing it.
- Add in formation in the static sections such as contact, about us, and FAQs, shipping, refund and return policies, so the customer is well informed about everything. In the end do not miss out on including the “Privacy Policies”.
- You can also make your site more effective by adding in some apps and install good analytics, which will help you track and show visitor data, such as no. of visitors, locations and age groups, on daily , weekly and monthly basis.