You plan to be engaged in trade, then it is important to pick up correctly the direction for occupations. Recently the drop shipping which has the advantages and shortcomings is popular. There are important features of this activity which should be known.
What it is a drop shipping and as works?
The intermediary activity which is carried out thanks to supplier of products is called a drop shipping. When using such scheme the goods ordered by the buyer go from the producer, and the businessman receives benefit from a difference between the wholesale and retail price established for the buyer. Finding out what is a drop shipping simple words, It is necessary to tell that this concept is translated from English as direct delivery. This form of activity can be compared to the partner program.
Drop shipping – pluses and minuses
Before being engaged in such business, it is necessary to estimate the existing good and bad parties. Let's begin with positive information and we will sort the main advantages of a drop shipping:
- There is no need to have the starting capital. Money on purchase of goods is not necessary, the only thing where it is necessary to put – to create and advance the website and to organize advertizing.
- It is not necessary to give money for rent of a warehouse and the organization of delivery, all this a task of suppliers. The problem of a dropshipper is to attract as much as possible buyers.
- Lack of risk to burn through and lose the money as very few people will guess to sell goods cheaper, than it costs at the supplier.
- There is no attachment to the range, that is it is possible not to worry that stocks of unclaimed goods will be saved.
- The drop shipping opens freedom of choice of partners. Anyway it is possible to replace the direction and to begin to trade in other things from other supplier.
There is a lot of advantages, but there are also shortcomings which cannot be missed from attention. Without their account the risk of emergence of serious problems significantly increases.
- There is no opportunity to accelerate delivery, especially it concerns foreign deliveries. It is important to think over everything in advance that know what to tell the buyer in case of force majeurs.
- It is necessary to select carefully the supplier as there will be a risk of delivery of low-quality goods.
- If to approach work seriously and to create online store it is necessary to carry out high-quality SEO optimization.
- Presence of the high competition therefore it will be necessary to work on search of new clients constantly.
- There is no opportunity to add identity to the order, for example, providing additional services, for example, to put gratitude or a gift for the order or at least the business card.
What is necessary for successful business a drop shipping?
It is worth understanding that this direction is popular therefore the competition very big. The firms which are working hard on a drop shipping already of time have the broad customer base and that to compete to them, important carefully to think over strategy and it is correct to choose the niche. There are several components for creation of successful business: to carry out good advertizing, to put the interests of buyers for the first place, to use marketing and to apply creative approach to own ideas.
Drop shipping – how to choose a niche?
The most important step on which the prospect of business depends therefore you approach everything intelligently. For a start pay attention to the most known trading floors and analyze their system of work for what communicate to technical support or buy something. Selecting for a drop shipping of a niche it is better to pay attention to products which or are badly realized in the market, or are not presented in general. By means of good marketing it is possible to untwist such novelties well.
Finding out what is a drop shipping on sales and how to pick up the niche, it is necessary to give such helpful advice – choose the sphere which well you understand. Thanks to it it will be possible to provide to the client detailed information on goods and to answer all any questions. It is recommended to test for a start genius of the idea, that is to understand there will be goods vostrebovatelny or not. For example, it is possible to check the number of inquiries in search engines for what there are special services.
The ideas for a drop shipping
The best way for sale of goods – use of sales online. For this purpose it is possible to choose such options:
- Social network. One of the simplest options means creation of group or a trade page where goods will be presented. For customer acquisition it is possible to advertize in groups flea markets.
- Online store. Effective work on a drop shipping can be realized on specialized platforms or if desired it is possible to create own resource with design.
- Interactive drop shipping platform. There is a number of suppliers who suggest to work via their website on which the one-page online store is automatically created. A great option for beginners as this way gives a chance to select the range, to send applications and to trace income.
- E-mail marketing. Many do not love spam, but it is a free way to attract clients, the main thing, to do it interestingly and intelligently.
Drop shipping with China
Many are attracted by goods from China which are interesting and cheap. This direction has advantages and shortcomings, for example, it is possible to wind well in cost and to attract clients, but at the same time many Chinese suppliers sell products of poor quality. There are certain websites offering a drop shipping, for example, of SunSky-Online.com or Focalprice.com. There are enormous platforms where it is possible to find the supplier of goods from China, so, the drop shipping about AliExpress, Taobao, Alibab and others is popular.
Drop shipping – how to begin to work?
It is important to develop correctly the action plan that business was not failure. Use such recommendations how to organize a drop shipping:
- Find a suitable niche for yourself and decide on the inventory.
- Choose suppliers who will be reliable and to provide suitable conditions of cooperation.
- Create the platform for trade, the most popular ideas were considered above.
- Begin negotiations with suppliers to discuss all details and to think over nuances of work. Sign the contract that everything was officially.
- Be engaged in advertizing and advance of the trade page, think over nuances of work with buyers and begin trade.
How to find suppliers a drop shipping?
It is very important to spend time for search of really reliable suppliers with whom it will be possible to build the adjusted business. That a drop shipping cooperation was successful, use such recommendations:
- Begin with large producers in the region which offer necessary services.
- In network there are many websites catalogs where it is possible to consider producers which offer different goods, to read about them responses and to study other information.
- One more option – a drop shipping profile exhibitions where it is possible to see products, to estimate their quality and to come into contacts with producers.
How many it is possible to earn from a drop shipping?
It is impossible to give specifically the answer to this question as everything depends on quantity of the sold goods and percent of a price markup. In most cases cover with 10-20% for domestic goods, and in case of sale of the Chinese goods the price markup makes 100%, and in certain cases and more. Finding out how to earn from a drop shipping and to think over the price, consider that the client will have to pay delivery and total amount should not turn out more than that on which the products are sold in shops.
How to become a drop shipping the supplier?
All suppliers and producers of different goods can be engaged in a drop shipping for what it is necessary just on the website or other page for sale to lay out information on it. Conditions of a drop shipping can be different, it is important to specify the sum of the minimum order, rule of delivery and return and so on. Main advantages of a drop shipping to suppliers:
- It is possible to save money on advertizing and other methods of advance as the dropshipper will be engaged in it significantly.
- It is not necessary to spend time for communication with clients, to find out different problems and to try to persuade to buy goods. The intermediary is engaged in all details.
- Opportunity it is essential to increase turns of product sales and even in wholesale deliveries.