You need not read the latest statistics to know that people are already shopping online. You might be one of them.
But you hit a snag: even if you want to do e-commerce, you don’t have the inventory or the significant capital to begin it. Well, here’s a solution for you: dropshipping.
What Is Dropshipping?
The meaning is in the name: drop + shipping. It works similarly to the regular online retail experience with a primary difference. You need not store or maintain any inventory.
Here’s how it works:
- You choose a dropshipping company. This can be an Amazon-like store, such as AliExpress, or any brand that offers such a program. You can also check out dropshipping directories, like Worldwide Brands.
- Select the products you want to sell. If it’s a direct supplier, you might need to inform them first that you want to take part in their dropshipping program.
- Have a website to sell the products. You can let a Shopify web design company do this for you.
- Buy the products from the supplier. Once someone places an order through your website, you can then buy the goods from the supplier.
- Wait for the supplier to ship the goods. The supplier will take care of shipping and delivery, but the labels will bear your business name and address.
Who Can Enjoy Dropshipping?
Anyone can do dropshipping, but it can be ideal for those who want to join e-commerce but don’t have enough money to produce the goods or maintain an inventory.
When you create something, you need not only machinery but also people, and labor these days is scarce.
But even if you have the funds for these, you might not have enough space to keep your products. You need to rent a factory or a warehouse, and real estate doesn’t come cheap, either.
Other benefits of dropshipping include:
- Ability to sell the product you like
- Chance to offer big-ticket items, such as electronics
- Diversify your products and markets fast
- Maximize and control your cash flow since you buy only when someone orders the products
Tips to Succeed in Dropshipping
Dropshipping is a unique opportunity to sell online, but it’s still no different from conventional e-commerce. You can still lose a lot of money if you don’t know the strategies for success.
For beginners, learn to do these:
1. Know your target market. To whom do you want to sell some products? Your answer will help you figure out the items to offer. To make it more specific, create a buyer’s persona. It will further streamline your market.
2. Pair web design with digital marketing. Usually, a Shopify web design company can also offer digital marketing services. These include content management, social media, and search engine optimization (SEO). Some provide paid marketing services, such as pay per click. All these strategies will help improve your presence online.
3. Choose your dropshipping supplier well. Keep in mind that the product or site still bears your business name, not the supplier’s. If they fail, then you also experience the same, perhaps even worse. Read reviews about the business or research about them in the Better Business Bureau or consumer commission. See to it that they respond to questions and concerns.
Dropshipping can be a great equalizer, favoring those who struggle with inventory and funds. But like any other business, it needs the right strategies to work.