As an e-commerce player, you have probably heard the term dropshipping. The procedure is not new; dropshipping as a storage method has been around for a long time in various parts of the world, primarily between American websites and production in Asia. But in recent times, especially considering factors such as… the rise of Shopify and Oberlo, dropshipping has started to gain popularity.
The concept of dropshipping means that the store does not stock its inventory itself, but instead forwards incoming orders to the relevant distributor, who in turn sends the product directly to the customer.
As a result, the store’s role becomes limited to customer service and payment processing, and it avoids the cost of inventory storage and order packaging, which is the main advantage of this method.
As always, it’s good to conduct thorough research. What products should you sell? What does the market look like for your segment? What are the competitors doing? Search and compare different suppliers and their conditions for dropshipping. One tip is to specialize in the selection of products. The internet is full of websites trying to sell the same products to the same target audience. Below are some tips on how to get started with dropshipping:
1. Choose a supplier.
The choice of dropshipper is crucial for your business. They will be your closest partner, and it is of the utmost importance that you have confidence in them. Therefore, make sure that the supplier has a good reputation, and take the time to investigate how they handle different services.
2. Choose products/product range
Again, research is important here. Check out the competition and specialize in your area. The internet is full of websites trying to sell the same products at the best price to the same target audience. Price is difficult to compete with nowadays, so instead, think about branding and focus (an example of this is Daniel Wellington).
3. Choose a platform
Which platform is best for you and your dropshipping business? Depending on how much work you are willing to put in, there are different options available. Where in the world are your customers located? What platforms are your competitors using? Research, research, research. If you want to invest in your own brand and put in a lot of time, it may be a good idea to have your own website that you market. If the purpose is more like a side business/hobby, there are several well-established websites that may fit. For example:
No, inventory is not required for dropshipping – that’s the big advantage. However, it may be useful to have a small buffer stock for handling returns. As a retailer for a wholesaler/dropshipper, it can be advantageous to collaborate with a good distribution partner that distributes and packs products in an appealing and professional manner. In the end, you are the sender of the package, and it is crucial for the customer how the product arrives and is presented. Here, at Exacta, we offer excellent choices for various types of transportation solutions. We always work with a delicate touch and have the ambition to add a touch of luxury to your everyday life.
Dropshipping is great for individuals who want to run an online store but may not have a lot of capital, are frequently traveling, and/or are an experienced serial entrepreneur who already has a business but wants a side project that may not require inventory and so on. You do not have your own inventory that costs money and needs to be inventoried. It is easy to start up, and you can choose the extent to which you want to invest.
Dropshipping is an accessible and affordable way to start a business. Here are some of the advantages of dropshipping:
As with anything, there are also disadvantages to dropshipping. This includes, among other things: