What is Dropshipping

Drop shipping is a business method where the retailer ships a product directly from a third-party to the customer. This third party could be a manufacturer, a wholesaler or another retailer. What this means is that unlike a traditional retailer, you never stock the products you’re selling. You only buy products when they are needed, which are then sent directly to the customer.

You know DROPSHIPPING I actually an E-commerce business where as a dropshipper keep him safe to stock product.

But everything is depend on your marketing strategy,brand popularity and customer demand.So in a certain period,you work to know your product.  The main thing is here Plan you Business strategy,and brand Promotion.According to your need you can change your business model.

How does Drop Shipping work?

Drop shipping follows a simple supply chain. The buyer orders a product from your store. You could have a brick-and-mortar store where you have sample items for display or product catalogues for customers to choose from. Or, you could reach more people by having an e-commerce website where your customers can order products. The customer pays for the order he places with you.

You then forward the order details, manually or automatically, to the supplier. Ideally, this supplier must be a manufacturer or a wholesaler so that you can earn a good profit on the difference between the retail price and the price you buy it from the supplier.

The wholesaler charges you for the product, and ships the product directly to the customer. However, the shipment would bear your logo, and not the supplier’s. Thus, the drop shipper is not even known to the customer.

In simpler terms, this is how dropshipping works:

The customer places an order for a product on the retailer’s online store.

The retailer automatically or manually forwards the order and customer details to the dropship supplier.

The dropship supplier packages and ships the order directly to the customer in the retailer’s name.

 

 

The best product for DROPSHIPPING:

Dropshipping offers a lot of conveniences to sellers such as low upfront costs, no inventory requirements and low risk. However, the flip side is that YOU have to do some extra work if you want to make drop shipping work for your online business. So if you plan on using a Dropshipper, then you need to plan on being more selective when you’re deciding what to sell.

So how do you pick the best products to sell for Dropshipping?

Tip 1: Don’t be stubborn with your product choices.

You can’t walk in with the mindset that “I’m only going to sell product x” or you’ll probably be disappointed pretty quickly. You’d be surprised how many new sellers have their heart set on selling (what turns out to be) highly competitive products for their first time selling online or products you simply cannot get as an online seller.

Here’s how it usually goes down…they have an idea for a product they really want to sell. They don’t do any research they just jump right to finding a Dropshipper, contact them, get their wholesale price and then their jaw drops to the floor when they see their wholesale price being higher than other people’s retail price they see online. They get upset, confused and then usually give up without ever considering any other products. That’s a huge mistake.

It’s imperative to understand that with Dropshipping, you get wholesale on 1 item. So in highly competitive markets, where other retailers are buying in volume to get deeper wholesale discounts, it’s not uncommon to see a dropshipped wholesale price be MORE EXPENSIVE than the other sellers retail price. For some products you have to buy in bulk quantities to really compete online. It’s not like that for ALL products though…

If you plan on using a Dropshipper then you need to be prepared to RESEARCH A VARIETY OF PRODUCTS. In fact some of the best products will be ones that you may have never considered selling before. Most new sellers tend to look only at products ‘they like’ or products they see advertised on TV and as a result, all they see are dropship wholesale costs that offer no profit margins because those types of products are competitive products with volume buyers and sellers.

Start to include some products in your research that aren’t products you thought about selling when you started. Be open to selling products you may not know much about yet.

By breaking away from ‘common mainstream products’ you’ll start seeing products you can dropship that have wholesale prices you can profit from.

Tip 2: Look for products with “Lower Demand”.

Sounds odd but it’s true. “Lower demand” products work better with Drop shipping because lower demand products typically have less competition from those big retailers.

You might be thinking…but doesn’t a low demand mean I won’t get many customers? Not at all. The online world is big. I mean…REAL BIG. So what’s considered “low demand” online can still mean hundreds or even thousands of customers a month. To a big retailer, only getting a few hundred customers a month isn’t enough to sustain their company, employees and other business expenses. However, to a small home-based online seller with little overhead, hundreds of customers a month add up really fast.

So when you’re doing your demand research, don’t be so quick to dismiss a product that you may think has ‘low demand’. It may just be a product worth researching further.

Tip 3: Focus your research on “Niche Markets”

As you may have guessed, at Product Market Research System | Sell Niches

 we LOVE NICHE PRODUCTS. Why? Because we’ve found (like many others have discovered) that selling to niche markets is a great way to build a business as a NEW online seller. If you plan on using a Dropshipper, niche markets are *ideal*.

Most big retailers don’t mess around with niche products because big retailers have big overhead so they need to attract a lot of customers as fast as possible. They need to sell mainstream products that attract millions of shoppers. So for them, niche products are considered a waste of time. That’s great news for small home-based businesses!

When you start researching niche products you’ll start seeing what you’ve been hoping to see. You’ll start finding products with better profit margins, you’ll start seeing your dropship wholesale prices LESS than other retailers prices in that space, you’ll see cheaper advertising costs and the list goes on. So why isn’t everyone selling niche products? Simple. Most people don’t know how to do product research. They just know how to look for products they know, have used or see commercials on TV. When those products turn out to be too competitive for Drop shipping, they don’t know what to do next and like I said before, they just give up hope.

 

There are millions of products and tens of thousands of product niches you can research. There are so many untapped niche product markets waiting to be sold by online sellers. We often have people ask us “have all of the good products been taken?” The answer is NO. When you avoid common, mainstream product markets, you start to see an entirely new landscape of opportunity for online sellers. So when you hear people say “dropshipping doesn’t work” it almost always means they tried to sell a product they didn’t actually research first. Dropshipping does still work but you need to spend more time researching.

 

Types of Drop shipping business: 

Dropshipping business can be done in two ways, under the first method you can create your own website and start your drop shipping business. Whereas under other methods, you can do this business by connecting to an online shopping website such as Alibaba, eBay or with Amazon.

There are many famous websites with which you can work by connecting and among these websites eBay and Amazon are the most famous online companies, with which you can do your drop shipping business.

Drop shipping With Your Own Online Store:-

Instead of selling the product through third party sites like Amazon and eBay, you can set up your online store. However, there are some advantages and disadvantages of opening your own online store which are as follows.

Benefits of opening your own online store (Benefits)

• You have more control

Open hoing your own online store gives you more control over your work and you do not have to depend on third party sites. So it is more beneficial to do drop shipping business through your own website.

• Get your own identity:-

By starting your website, you not only have more control over your products, but with the help of the website, your business also gets an identity. And just as websites like Amazon and eBay are famous among people, so too can your website be famous.

• There is no need to pay any kind of fee.

The other benefit of doing this business by creating your website is related to fees. By creating your website, you do not have to pay any kind of fees to the third party, which means that only you have the right to your profit.

Disadvantage related to opening your own online store -

• Have to work harder

Creating your website is not an easy task and if you create your own website, then you will have more expenses and you will have to work hard. Also, while making your website, you have to pay special attention to the look, name and other things of your website. Because if your website will not be highly attractive, then your website will not be liked by people and as such it will harm your business

• It takes time to set up website

Already, there are many shopping websites that have established themselves well in this business. So when you build your website, it will take a lot of time to set up your website.

• You will have to invest more money

To increase the traffic of your site, you have to resort to things like SEO, marketing and advertising and it costs to do so. So if you do drop shipping business through your website, then you have to add the cost of these things to your budget.

Drop shipping Website Benefits:-

There are many advantages to selling your goods through any other website i.e. third party and they are as follows.

• Ease of starting a business

If you start your drop shipping business through a third party, then you will be very easy to establish this business. Because these sites are fully installed and as soon as you upload your product on these sites, you start getting orders soon. Due to this, your drop shipping business starts easily.

• No need to do marketing

When you build your site, you need to market it and it costs a lot. On the other hand, if you start this work through a famous website, then you do not need to take marketing stress, because these sites are already very famous.

• Your products reach more people

EBay and Amazon sites are very old and quite popular websites and many people buy products from these sites. If you upload your products on these sites, then the customers of these sites also become your customers and in such a time you get connected with more people.

Disadvantage of starting a drop shipping business with a website:-

• Fee charges

You can do business with any other website by connecting only when you pay them the fees fixed by them. Actually, whenever a customer buys your products from their site, then these sites deduct some money from the price of that product as a fee.For example, if the price of your product is 100 rupees and if that product is purchased by someone, then the website keeps 10 or 15 percent of the price of that product as a fee, which is There is a type of fee.

• You don 't control yourself

Every website has its own rules and when you do business with these websites, you have to follow their rules. Because of which you do not have much control over your products and you have to work under those sites.

Important information related to starting a successful online drop shipping business-

• Choosing the right product

Many types of products are sold in the market, of which some products are in high demand, then some products are not bought much by the people. So when you start the drop shipping business, first decide which product you want to sell and which product you do not.

If you try, select only those products, which are done a lot by people online through shopping. Also, sell every kind of variety product in your website.

• Research is also necessary (Research)

Making money through drop shipping is not so easy and it is necessary to do a lot of good research to earn money through it.

Through research, it is easy for you to choose the products which are bought a lot by people online.

After the research, you have to contact the whole seller, manufacturer and drop shipper supplier of the products you will choose to sell.

You can sell their products in your website only after making a deal related to selling the whole seller, manufacturer and drop shipper supplier to their producers. While doing the deal, make sure that you get a profit margin in selling those products.

Information related to building your e-commerce website

Build an e-commerce website thoughtfully

People can buy your products from you only through e-commerce website.Therefore, you have to make your e-commerce website very thoughtful. Also, you have to choose a good name for your e-commerce website.

Before creating an e-commerce website, you also have to decide which products you are going to sell through your e-commerce website. And after this is decided, according to your product, get a website made from any website making company for you.

• It is important to give information about the website:-

No matter how attractive your website is, but until people do not get information about your website, you will not be able to grow in this business. Therefore, you have to make a good strategy related to the promotion of your website, so that people can know about your website.

• Contact your customers:-

It is not necessary that every drop shipper supplier deliver the right product at all times. So whenever your customers get the products ordered by them, then you should contact them and take a review of them. Apart from this, if you want, you can also add a comment section through your website through which you can connect with your customers.

Dropshipping Marketing strategy:

Dropshipping marketing strategy for your business:

1. Define the target market for your dropshipping business.

    2.Having a clear idea :

about your target market helps to work on the rest of the marketing strategies for your dropshipping business.

 

3.Use social media marketing

Social media has a tremendous potential to drive traffic to any business. With a proper audience-building strategy, you can use social media marketing as a growth hack for your business. 

4.Run Facebook Ads to achieve your marketing goals

Facebook ads are the quickest and easiest way to get started with marketing for a dropshipping business. 

5.Use up-selling and Cross-selling

Up-selling and Cross-selling is an essential part of marketing for a dropshipping business. With proper up-selling and cross-selling strategies, you can double your sal

6.Start e-mail marketing for dropshipping:

Email marketing is a great way to get returning customers for your dropshipping business.

7.Start content marketing for your dropshipping business

Content marketing helps you to attract new customers into your sales funnel in the early stages of their purchasing journey. 

8.Use text messaging to market your dropshipping products

Text messaging is one of the most underrated marketing methods. However, we found that it is more effective even than email marketing

8.Start a blog that drives organic traffic to your dropshipping business

By publishing blog  post about your product you can market your business.this is a low cost method of marketing.

Pros and Cons of dropshipping:   

Pros of dropshipping:

• It’s the ideal type of business for newcomers

Dropshipping gives you a great start – you will have no trouble managing this business because the supplier does most of the job for you.

• You save huge sums of money

You don't own these products yourself, so you don't need to rent a warehouse. You also don't need to buy items for your own stock.

• You can reach a really wide audience

Dropshipping means that your store is based on an online platform, or on your own website. With dropshipping your business gets an international reach – you can connect with any person in any place in the world, no matter how far away they live or what language they speak.

• You can change and expand your assortment any time you wish

You don't pre-order the items you're selling. So you can add anything to your product after or even change it completely if you want to.

• You have more time to think about growing your business

To have a profitable business you need to make your potential customers interested in your store. It means you need to spend time and effort on marketing, advertusing and promoting your store online. All the shipping and management tasks are done by the supplier, so you can devote as much time as necessary to promotion and marketing.

• You’re free and independent

You can easily work from home or from any place you like — you don't depend on a specific location. You can turn any place into your workplace, and you can achieve a lifestyle you’ve always dreamed of.

Cons of drop shipping:

• Less Control Over Order Fulfillment and Lead Times

If you start a dropshipping business, make sure you work with high-quality partners.

• Reliance on Other People’s Stock

Being able to offer new products immediately or stop selling slow-moving products is a major benefit of dropshipping. The drawback to this perk is that you don’t control your supplier’s inventory. If they run out of stock, YOU run out of stock.

• Poorer Customer Service

If your supplier delivers products late, damages them, delivers the wrong items, or otherwise screws up your customer’s order, the customer will take it out on you.

 Conclusion:

Being a dropshipper does not make you any different from other e-commerce sellers, you still have to compete for the attention of potential customers like every other business and if you are not willing to learn how to do that, then you probably shouldn’t be in business at all.

While you should not blindly follow the idea that dropshipping is some make money quick formula, Skepticism will also not get you very far. Dropshipping would not be this popular if no one makes money from it!

In my opinion, you should get into dropshipping with the same mindset of getting into any other business venture. Be willing to learn and grow as an e-commerce entrepreneur. Learn everything you can about marketing, read blog posts about starting a successful dropshipping businesse

if you never get in the water, you will never know how to swim.

Don’t be the guy that goes around being skeptical about dropshipping - instead, be the guy who is willing to learn what makes a successful dropshipper.