Dropshipping: What does it mean?
Dropshipping can be explained in 3 easy steps.
- Your customer places an order on your online shop.
- Your supplier receives your order details automatically from your store
- Your supplier will package and ship your private-labeled product directly to you.
Dropshipping is not a way to keep product inventory.
How do dropshippers make money?
The supplier will determine the product cost in this retail model. To ensure a healthy profit margin you will mark up the product cost to set your retail price. The retail price is what the customer pays to shop at your store. This is an example:
- Mascara product cost: $6.00
- Markup: 200%
- Retail price: $18.00
Dropshipping beauty products is a smart move
Ecommerce is rapidly growing
It is growing! Yes, it is growing! In 2019, global retail ecommerce sales reached $3.53 trillion US Dollars. E-retail revenues are expected to rise to $6.54 trillion US$ by 2022. Online shopping is a very popular activity worldwide. Dropshipping is a popular model for online shopping, with 33% of stores using it.
Less inventory fulfillment load
Compiling, packing, and shipping products can be costly for your business, especially if you have larger orders. Dropshipping is where your supplier holds your products while you handle shipping and packaging. You don’t have to worry about the logistics and costs of shipping and packaging. Instead, you can concentrate on sales, marketing, branding and selling your online store, which will streamline the selling process.
Very low start-up costs
This is because you don’t need to store or carry inventory. This accounts for the low start-up cost. For ecommerce businesses starting from scratch, inventory costs are often the largest costs. Traditional ecommerce businesses have to start with capital. This money pays for storage space, day-to-day operations, and other costs. Dropshipping reduces these costs, so your capital can be used for branding and marketing.
Dropshipping: Some things to be aware
Less control on order fulfillment
You might not be able quickly to resolve a customer’s complaint about the product they purchased from your store. The supplier would be able to solve the problem. Your supplier may not respond quickly enough to resolve the issue as quickly as you would like. This could lead to a dissatisfied client and possibly losing them as a return buyer.
Lower product quality
Dropshipping is a popular business model. Most often, dropshippers find suppliers from China. Products are less expensive and of lower quality. Your store’s reputation could be damaged if customers are unhappy with products.
No control over shipping delays
Point 2: The dropshipping market is overcrowded with suppliers from overseas. Shipping delays can cause problems for customers located in North America, as the supplier is not on the same continent. Shipping delays are beyond your control as the inventory is owned by them.
What are the possible solutions?
Be customer focused
Many dropshippers may believe they are not responsible for the satisfaction of their customers. Dropshipping entrepreneurs must be customer-focused. To retain customers, give priority to your customers.
Find the best suppliers
It can be challenging to find the best suppliers who produce the right products for you.
Blanka has done this for you. We only source the best quality products from North America. Blanka offers the opportunity to create your own private label line of beauty products. This will allow you to ensure that you are delivering only the best products to your customers.
Always order samples
To ensure that you are satisfied with the product, test it first. Request samples to test before placing large orders on your online store.
Dropshipping beauty products using blanka: How it works
Blanka is an online platform that makes it easy to start a private label cosmetics brand. Dropshipping cosmetics products can be done to the customer so that you don’t have to keep inventory.
Blanka will allow you to access hundreds of high-quality makeup products while you manage the marketing and sales.
- Blanka allows you to create an account
- Upload your logo
- Add products to your shop
- Customer places an order
- Blanka packages your product and sends it to your customer. Voila!
Let’s take a look at it.
Create an Account with Blanka
Shopify allows you to install the blanka app, create an account and start creating your online store.
Upload your logo
After the app has been installed, you will be able to browse our makeup product catalogue and choose products that you want to sell in your Shopify shop. Upload your logo to our app. Now you can see how your brand appears on our private label makeup products.
It looks amazing. It’s perfect! Now you can start selling these private labels products on your ecommerce site.
It is important to order samples in order to give the products a chance. Don’t sell blindly to customers and write beauty product descriptions if you don’t really know the product!
Add products to your store
You have received the samples. You can now add the products into your Shopify store. The products will be automatically added to your Shopify store by clicking a toggle button.
Customer places an order
Amazing! It’s a new order!
All you need to do when your customer orders from your ecommerce shop is to process the order on blanka. Blanka’s technology will send all necessary information directly to our supplier in order to complete the order.
Blanka packages your product and sends it to your customer. Voila!
Blanka holds all products in its warehouse. We can help you put your brand on makeup products and package it for you. Then we’ll ship it to your customer. You will end up with a satisfied customer.
Who is this for?
Dropshipping is a great option for people who have a large social media following or a solid client base. Dropshipping is a competitive business, but blanka’s goal is to help entrepreneurs grow their brand and sell directly into the markets that they trust.
Combine the powerful techniques of dropshipping and private labelling to grow your brand and business!
Conclusion
Dropshipping is a great way to build your brand. However, you need to be careful about who you choose to dropship. Blanka is a great way to get started selling high-quality, brand-name products. We provide reliable suppliers and local contacts.
Although it can seem daunting initially, with the right tools and resources we will help you expand or launch your private label beauty brand.
