The Ultimate Guide To Dropshipping
Dropshipping is a fulfillment method where the store purchases the item sold from a supplier rather than keeping stock. The item is then invisibly shipped to the customer. Lastly, the shop alerts the customer their item has been shipped. It’s that easy!
There are many great reasons to consider dropshipping. This fulfillment method involves little overhead. It is simple to get started and there are less startup costs. It is flexible and there are a diverse selection of items to choose from.
Of course there are cons to everything. With dropshipping, low margins and problems with stock can be a concern. Suppliers do make errors and shipping can become complex at times. Stores must also be on the lookout for fake suppliers.
There are simple ways to tell if a supplier is fake or legitimate. Monthly fees can be a red flag if the business you are dealing with is a wholesaler and NOT a directory. It is important to be aware of the difference because directories (lists of wholesalers) usually do require fees. Also, if the supplier is selling to the public they are probably fake.
It is normal for REAL wholesalers to ask for a pre-order dropshipping fee. This is because the cost of shipping small orders are significantly higher than bulk orders. There will often be a minimum order quantity to weed out merchants who will probably keep to small orders.
When looking for your supplier, remember that the best wholesalers have great staff, focus and approachable customer service reps. They are usually up to date with technology, fulfill orders through email and have a good location. Great suppliers are efficient and organized.
Choosing what items to dropship is crucial to your success. It is best to avoid choosing what you like and instead rely on market research. Ask yourself: Is the item marketable? Does it have accessories for potential future sales? Will there be constantly updated versions that will quickly make the item obsolete? Is it difficult to get locally? Is it small and cheap to ship?
Picking your customer base is also vitally important. There are a variety of different types of customers. These include hobbyists, businesses and repeat customers.
You will want to start an online store for your dropshipping. This is ideal because it allows you more customization and it cuts out third parties like eBay. Design is easy and responsive to mobile devices.
Keep in mind that with an independent online store, you will have to generate your own traffic and handle setting up the layout. However, there are so many great reasons to start a dropshipping company and so few cons. Take the first step today building your online dropshipping business!