Dropshipping is a practice of selling a product that you don’t have physically. Sound like a scam? No, it’s a new trend of marketing and distribution of products.
If you are a dropshipper:
- You need to look for a particular product to sell. Then you have to look for the most reliable supplier of your product in the market.
- You have to promote your product either on your own shop, online or anywhere there is a potential buyer.
- Once sold, you process the order with the supplier (most often they are from China) and get their payment.
- This payment will be used to buy the goods to you supplier.
- The supplier will handle the delivery of your product direct to you customer. The customer wouldn’t know that it was shipped to her directly from the supplier.
- To be more convincing that the product was handled by the seller, logos and stickers with the seller’s company name will be labeled at no extra fee.
Dropshipping is a modern method of ecommerce. Customers don’t expect to see the product they are buying, but only an example or a photo of the product. You pay for the goods that are only virtually present. The goods will be delivered to the customer directly from the supplier at later period. It will undergo shipping process which might take time especially if it came from other foreign countries which is mostly China. The customer do not have any idea that the goods came from a different source, it remains a secret.
Sellers gain from the process of dropshipping, they can easily make profits from selling the products without investing on it. There is also no risk of overstock of the products because the products ordered are only those that are already paid. They will not bother with the packing and delivering for the dropshipper will do all these things. Your business may grow from small orders to bulk orders without the increase in operating cost or workload.
Dropshippers have the expertise in marketing their products and they can be reliable source of efficiency for wholesalers and distributors. Large wholesaler companies wouldn’t spend time and expertise on such things. Because dropshippers deal directly with the customer and handle much of the customer service, capable of handling small to large orders large distributors find the small dropshippers as potential business partners.
Dropshipping may be easy without all the technicalities. It is complex in its own right and has also downsides you may not be aware of.
Dropshipping is a good way of making easy profit without the risk of big investment. Customers do not know that you are just a middle man making a profit from them; the good thing is you are introducing new products to the market that may be impossible to obtain in the current market. Likewise, you are also bringing new ideas by creating perfect product combinations, creates an easy and secure process of ordering, improve customer support and product information and assist on import issues.
But, dropshipping is not that simple, it involves good amount of common sense and one must be aware of the potential dangers that might occur. Issues like quality of the products and shipping issues are most often the things sellers have to face.
Combination of good supplier and good quality of the product will make any dropshipping business successful. But you need to work hard on looking for the right supplier who will give you quality products and it will sum up to a SUCCESSFUL BUSINESS.
Grin Nirgerep Jul 24, 2014