Last Updated on June 25, 2020
Holding an e-commerce site is not a single block task; instead it involves a series of activities one after the other. Some of the common elements include the availability of stock, seasonal inclusions, making strategies for the customers, and so on. In all these, the first thing that should get your maximum concern is stock or inventory. If you are not supported with this feature, it is undoubtedly going to create hurdles in due course of time. So, this is the peak time, where you must be aware of Drop shipping. Well, it is not necessary for everyone to be aware of the term or business terminology. But there is nothing to worry, as in this post you will get the maximum answers.
Sharing Drop shipping in simple words
Those who think that drop shipping has just entered the market are wrong, as this concept was coined in the year 1999. Plus, only a few are aware that this concept came from a Las Vegas-based shoe along with clothing brand Zapas mutual collaboration. To know drop shipping in easy terms; check below
Drop shipping is one such business model, where the supply chain is carried out without having the possession of the inventory. Confused, in this business model, the retailer will not hold stock, despite; they will purchase it from the third party, who will then ship it to the customer. Yes, you are right; a merchant has nothing to do with the product handling.
The drop shipping model; explained
Understanding the drop shipping model will not take your time. Here initially, the customer will come up to the browser hunting for the product. This process will get registered in the database of the drops hipper. Now, the customer when makes the order; it will reach the third party, i.e. the supplier. This party is the one who is responsible for selling the stock at the wholesale rate and large quantities; certainly. The last step is when the supplier will send the product to the customer directly on the given address in the name of the company of the drop shipper.
Can drop shipping reward or benefit an E-commerce owner?
Saving money will get easy and in large numbers
The drop shipping business involves a lot of cost-cutting charges. In the meantime, you will have the complete idea about where the product is coming from plus the charges included. The entire supply chain will be within your reach. Therefore stipulating profit will be in your hands.
You will save a lot of time
When you enter into drop shipping, almost 50% or more of your time will get saved without much ado. On the contrary, in the retail business, various activities come in like management of stick, employees, shipping, returns and the list is really long to write down. But in drop shipping, you are free from such activities and in reality; there is nothing on your part in the shipping process. You are not shipping the product to the customer, which means saving tonnes of productive time here.
Offering a surplus of products in variety will be easy
Today, the customers have become advanced, and they would prefer to reach a store where they can find variation. It is the reason if you are working in the drop shipping business; it is suggested to keep varieties in order to attar more and more customers. It will be easy to enhance the work prospects by working with the wholesaler or various other industries together.
Will drop shipping business offer you with any benefits in future?
Give access to a bigger market
If you owe a wholesale shop or even a departmental store, it would be tricky to meet the masses at large and at the same time other problems are also there. But on the other hand, the occasional or temporary cycle will prevail in the market leaving behind a small ratio of profit. Now, if you are dealing in the drop shipping business, it would be seamless to combine with a number of e-commerce platforms and come in the visibility of a bigger market. In addition, the shipping cycle will also be quick and efficient.
In the earlier days, the direct relationship with the customer was not appreciated and hence was dropped many a time. However, at this time, such issues are not there, as an increase in the marketplace, e-commerce platforms are bringing wholesaler to jump into direct-to-customer sales. This will, on the other side, exceeds the capabilities of the wholesalers to work at a broad base and with the customers as well. It is a robust reason behind enhancing credibility and reliability in the business.
A brand name in drop shipping retailer business
These days, the marketplace is looking for drop shipping suppliers a there are very less provides of vast inventory considering the retail stores. With this, you will easily come in the good list of the retailer’s drop ship partnership record.
Does drop shipping have any negative returns?
E-commerce drop shipping is filled with advantages, other than there are some drawbacks as well, that you must know beforehand.
Difficult to track inventory problems
If you are having your own store, then it would be trouble-free for you to maintain the stock. Suppose, if you want to know how many stocks is remaining, etc. But with drop shipping, the story is different; it is because here you need to depend on the supplier. Plus there will be less idea on the stock ratio or calculation. Therefore, in many cases, drop shippers are found incapable of meeting the orders or the customers timely due to lack of stock.
The variation in the shipping cost
In this business, every retailer is working with a series of drop shipping suppliers leading to a change in product and suppliers. Now, if a customer is placing various orders from your drop shipping website, there will be a change in the shipping rates. It happens, as the products are coming from different suppliers, and their shipping cost is then transferred to the customer, and this cycle goes on until the product reaches to the customer.
Errors in product
When we talk about product shipping in the drop shipping business, it is taken as an advantage. The product is actually shipped from the supplier, and you don’t have to deal with it. But what will happen if the same product turns out to be faulty? In this case, the customer will put forward all the complaints to you as he or she is unaware of the supplier or drop shipping process.
Become a drop shipping supplier with these tips
Start with your niche
In the drop shipping business, you cannot rely on any product and get along with the business. The first task is to understand with the niche you are planning to work on. You have to finalise the niche that interest you and will come back with profit too. The product ratio that you have decided must be there in your pocket after selecting the niche.
Don’t involve in high shipping rates
People will buy from the place where they are able to grab excellent and affordable rates; therefore, if you write high shipping charges, it will cut the cost. You must concentrate on arranging an attractive products line instead of raising the price bar. It is for the reason that everybody is not a scrutinized buyer, as only 40% will do the perspective we are talking about. The product line must attract customers and must not be readily available. It is enough for you to maintain a reasonable price ratio.
Research on your competitors
Expecting a no competitive market in any business is just a dream that will never get fulfilled. This theory gets along with drop shipping business as well. Therefore, when you are entering into the drop shipping business, stay prepared for the competition for this, you must perform strict and detailed research on the competitors. The major areas to look for include the product line, discounts, profit margin etc. Now, make your work on the basis of your research to get a better response from the government.
Partner with a trusted supplier
The drop shipping business in moving high and; as a result, many numbers of suppliers have docked up the market. In this scene, you should partner with a reliable. This task in time taking so, plan accordingly
Don‘t leave out the making of a drop shipping website
Starting a drop shipping business without the website will be a wrong call. It is the fundamental step that is required for the drop shippers. Or it can be said as an underlying platform to reach the customers. For the drop shipping model, one can try Shopify. Besides, you should keep your focal point on creating a lucrative website.
Let everyone know about your new business
If you are hoping your customers to reach the website just at the time of launch, then it is out of the possible scope. Also, here we are not telling you to keep the loudspeaker on and let the customers know about the website. The simple trick to follow is advertising. It can be down by running campaigns on Google, Facebook, Instagram, Twitter, Adwords etc. It will lead your customer approach you with minimal efforts.
Work on analysing the records
It is imperative to understand and analyse the work reports of your business and how is it working. No matter in which stage you are in, this habit will lead to success. Plus, work in bringing new idea and techniques for development.
Can you make money using Shopify drop sipping account?
Give a boost to the profit margin
Do not stuff your website with a random number of products, because it will not be able to serve the purpose. As we were already talking on the product selection, that needs to be attractive and not easily available. It will help you in saving a proper scope for profit. Consider the products and market price in addition to the demand to identify the profit as well as the selling price.
Bring offers as customers love them
There will be no customer in the entire world, who will say no to offers or deals. The working regime of discount or offers is very simple. Here it will first reach to your primary customers and will pass on further to others. Now, within a small span of time, you will keep on increasing the customers offering you with a win-win situation.
Never sit back without researching
Researching your business, products, offers will never end unless you get lazy. Also, your effort should be in making big with SEO, as it is requisite of the online business. Give worth to the keywords, content, descriptions of the products, and so on. Your target must be inserting all the possible keywords; so, nothing goes missing by the time a customer enters it on any of the search engines.
Connect with the customers through emails
Email marketing is among the most profitable element of a drop shipping market, which will assist you in giving a boost to your website. You can simply create a mailing list gathering from the leads. Then, within a limited period, keep on sending emails, newsletters, blogs, offers or any kind of offers. As per the research, it has been observed that 59% of customers do click on the emails.
Getting success with a drop shipping business is not a 50-50 task, as it requires efforts and hard work. If you are pouring your best in business, then, no one will be able to save you in the long run. Furthermore, ensure merging into the tips and ideas we have just discussed.